Over the past few years, CEOs and CIOs have been focused on digital transformation and embarked their organisations on a journey for innovation and growth. By leveraging key technologies such as cloud, mobile, big data and analytics, they set the ground to pioneer the Internet of Things, Artificial Intelligence, advanced robotics, augmented and virtual reality, which can further accelerate competitiveness and extend business reach.
The digital transformation story might have entered a new season, that of "multiplied innovation": with this terminology, industry analyst IDC describes the advent of business models reinvented around distributed cloud infrastructures, public cloud software stacks, agile and cloud-native apps, AI, and new, pervasive approaches to cybersecurity.
Multiplied innovation models are expected to drive a ten-time increase in apps and digital services, as customers in all industries are raising the bar when approaching companies, interacting with them and completing transactions. The expansion of digital innovation capabilities will rapidly impact the worldwide economy, and lead to over half of the global GDP being digitized by 2021.
How will this happen? According to IDC, already in 2020, about one-third of Global 2000 Index companies (the world's largest public companies) will reinvest at least 10% of their revenues in digital innovation. Manufacturing, transportation and retail will be the top spending industries. Something like 500 million new logical apps will be created, equal to the number built over the past 40 years – they will mostly be "hyper agile", thus highly modular, distributed, continuously updated, cloud-native applications.
Artificial Intelligence will be more and more at the core of any innovation. By 2022, experts predict that 25% of endpoint devices and systems will execute AI algorithms, while AI-enabled user interfaces and process automation will gradually replace one-third of today's screen-based apps.
This shift will also change architectural strategies: over the next five years, organisations will embrace integrated hybrid/multi-cloud tools and platforms to support emerging applications and use cases.
As we prepare for this fast-paced multiplied innovation scenario, we shouldn’t be scared by the disruptive effects of digital technologies and business models. Let’s plan our journey together, leveraging our unparalleled expertise and the outstanding skills of our people to get the utmost for your business.
Photo credit: Designed by Lyashenko / Freepik