Forecasting digital business strategies in Asia/Pacific* Outlook for 2024 and beyond revealed by IDC
Singapore, March 14, 2024 – In a recent FutureScape report, IDC FutureScape: Global Digital Business Strategy 2024 Predictions — Impact on Asia/Pacific (excluding Japan), IDC predicts that digital spending growth will outpace regional economic growth by 2024. CEOs in Asia-Pacific ex-Japan (APeJ) are increasingly leveraging technology to compete in a digital-first economy, and organizations that invest in digital technology continue to do so even in the face of budgetary impacts such as inflation. We will continue to invest. At the same time, companies that lag behind will invest in digital technology to catch up with their competitors.
according to IDC CEO Sentiment Survey 2023, 84% of APeJ CEOs plan to increase their technology budget in 2023, despite continued macro uncertainty. Digital spending will be driven by initiatives that strengthen the digital foundation for business transformation, new business and operating models, and combine them with GenAI-enabled products, services, and experiences.
• Popularization of digital business models: By 2025, 40% of organizations will sell, consume, or provision on-demand services through digital ecosystems, enabling new business models that leverage AI Everywhere capabilities.
• Digital business platform as the digital foundation of the enterprise: In 2028, organizations with established digital business platforms will be better able to track ROI and execute digital revenue initiatives, increasing their digital market share by 50%.
• GenAI-enabled products and services: By 2027, 50% of companies will master the use of GenAI to co-develop digital products and services and grow revenue by 2x compared to competitors.
The explosion of GenAI foreshadows what IDC thinks is next. AI everywhere. Digital capabilities increasingly define competitive advantage. Organizations that master data, AI, and GenAI are poised to deliver personalized experiences at scale, leverage business ecosystems in real-time, and innovate at faster speeds. To this end, the IDC Digital Transformation (DX) Spending Guide predicts that technology spending in the region will increase by 18.9% in 2024. Apart from this, APEJ's GDP is projected to increase by 4.2% in his 2024.
Digital's rise to the boardroom agenda also portends a shift in technology's priorities and role within the C-suite.
• Digital revenue growth: By 2027, 80% of CEOs will claim that the primary role of C-suite technology leaders is to invest in digital-first initiatives to achieve digital revenue goals.
• New digital KPIs. By 2027, 30% of companies will develop new KPIs that are directly tied to digital business outcomes through the application of advanced analytics and AI.
• The Birth of the AI Chief Executive: By 2026, the proliferation of data from GenAI and other major digital initiatives will result in 20% of A2000 organizations implementing or elevating the Chief AI Officer role to the C-suite. AR/VR engineering and training: By 2028, half of large enterprises will use Prompted Engineering to prototype AR/VR simulations, reduce development time from weeks to hours, and create accurate training.
“APeJ CEOs are concerned about sustainable business competitiveness and are leading business transformation with executives. Demand for digital experiences from customers, employees, partners, and suppliers is changing into an expectation. “Companies looking to sustain and grow are looking to digital. They want to increase their revenue streams while digitizing their operations to reduce costs and improve efficiency.” IDC Asia/ said Lawrence Cheok, Associate Research Director, APJ Digital Business Strategy Research, Pacific.
In an ever-evolving digital landscape, the IDC Future Enterprise Awards 2024 seeks nominations from outstanding leaders in digital business transformation. A pivotal opportunity to highlight industry innovation. Nominate now.
Each year, IDC releases key technology forecasts at the global, regional, and country levels through the IDC FutureScape report, providing a crystal ball perspective on the future of the rapidly changing IT industry. These predictions are used to shape the strategy and business goals of technology leaders and business executives for the next 1-5 years. All forecasts mentioned here cover the impact on Asia/Pacific.
Watch an on-demand replay of IDC's 2024 Forecast presentation. This presentation is available as part of a series of FutureScape webinars covering the IT industry, AI and automation, digital business, the CIO agenda, and emerging technologies.If you would like to attend these webinars, please register to learn more here.
The Asia/Pacific Japan FutureScape report comes with a free report that provides specific recommendations for technology vendor sales and marketing leaders. Leverage IDC insights to better understand client priorities and enhance your storytelling and go-to-market plans. IDC FutureScape: Global Digital Business Strategy 2023 Predictions — Asia/Pacific (excluding Japan) Implications: Positioning for Success — Opportunities for Technology Sales and Marketing Leaders market presentation here.
For more information about IDC FutureScape and other resources, visit your regional FutureScape site. For sales inquiries regarding the IDC FutureScape framework and reports, please contact his IDC account manager or his Tessa Rago at trago@idc.com. For media inquiries, please contact Michael de la Cruz at mdelacruz@idc.com or Miguel Carreon mcarreon@idc.com.
*Asia/Pacific region excluding Japan
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About IDC FutureScape
IDC FutureScape reports can be used to develop an enterprise's IT strategy and planning by providing a fundamental framework for evaluating IT initiatives in terms of their value to current and foreseeable future business strategies. Masu. IDC's FutureScape report consists of a series of decisions designed to identify a variety of concerns that CIOs and senior technology professionals will face within a typical five-year business planning cycle.
About IDC
International Data Corporation (IDC) is one of the world's leading providers of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC provides global, regional, and local expertise on technology and industry opportunities and trends in more than 110 countries. IDC's analysis and insights help IT professionals, business executives, and the investment community make fact-based technology decisions and achieve key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading technology media, data and marketing services company. For more information about IDC, please visit www.idc.com. Follow IDC on Twitter. @IDCAP And LinkedIn. Subscribe to the IDC Blog for industry news and insights.
