Digital transformation is taking place across several industries as they face accelerating pressure for fundamental business process transformation — including embracing digital business technology, in order to survive and stay competitive — according to a report by IT research firm Gartner.
“Transformation remains a critically important phenomenon across all industries. Many industries will face intense challenges this year and beyond, and will have no choice but to radically change their established business models,” said Kimberly Harris-Ferrante, vice president and distinguished analyst at Gartner.
If last year, enterprises are focused on adopting new technologies driven by the Nexus of Forces (convergence of social interaction, mobility, cloud, and information), this year, leaders are significantly shifting their business models and processes.
The continued consumerization of IT is believed to be the cause of digital disruption, forcing organizations to not only adopt new technologies but also change their traditional business processes and operational models. “The need to focus on personalization and improved customer service are themes that cross many industries,” according to Gartner.
Key strategic planning assumptions from Gartner cover digital strategies that leverage mobility, analytics, and cloud to improve business processes, take advantage of real-time intelligence, expand the boundaries of traditional workforces in industries such as banking, retail, healthcare, manufacturing and government.
Top industry predictions include:
• By 2016, poor return on equity will drive more than 60 percent of banks worldwide to process the majority of their transactions in the cloud.
• By the end of 2017, at least seven of the world’s top 10 multichannel retailers will use 3D printing technologies to generate custom stock orders.
• By 2017, more than 60 percent of government organizations with a CIO and a chief digital officer will eliminate one of those roles.
• By 2017, 40 percent of utilities with smart metering solutions will use cloud-based Big Data analytics to address asset-, commodity-, customer- or revenue-related needs.
• By the end of 2015, inadequate ROI will drive insurers to abandon 40 percent of their current customer-facing mobile apps.
• Full genome sequencing will stimulate a new market for medical data banks, with market penetration exceeding 3 percent by 2016.
• By 2016, 60 percent of people covered by health insurance in the United States will know the procedure price and provider quality rating of shoppable medical services in advance.
• Through 2017, K-12 online education spending will increase at least 25 percent, while budgetary constraints will keep spending on traditional instructional categories stagnant.
• By 2018, 20 percent of the top 100 manufacturers’ revenue will come from innovations that are the result of new, cross-industry value experiences.
• By 2018, 3D printing will result in the loss of at least $100 billion per year in intellectual property globally.
• By 2017, 15 percent of consumers will respond to context-aware offers based on their individual demographics and shopper profiles.
• By 2015, 80 percent of life science organizations will be crushed by elements of Big Data, exposing poor ROI on IT investments.
To survive and thrive in this new business environment, Gartner recommends that enterprises must respond immediately to build the right business and IT road map for future market demands.
“Business leaders and CIOs must carefully assess their industry-specific strategic requirements, including the demands of consumers and business partners, to map out a transformation plan based on new technology availability, consumer demographic/behavioral changes and market conditions, says Gartner.
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