IDC’s ‘2019 Top 10 digital transformation trends for New Zealand’ report predicts that by 2020, at least 55% of NZ organisations will be digitally determined, transforming their markets with new business models, developing digitally enhanced products and services.
At the same time, the report said that the Chief Digital Officer (CDO) title will decline by 2023, as “digital will be fully embedded in organisations and no longer regarded as something special.” However, more than 60% of CEOs will have led digital initiatives at some stage in their career.
Louise Francis, A/NZ Research Director for IDC, commented that, while a little over half of NZ organisations will be digitally determined by 2020, customer advocacy will be key to success, adding: “We estimate that by the end of 2020, more than 60% of NZ business-to-consumer organisations will have adopted Net Promoter Score as their leading success metric. Over that same period, at least 20% of businesses will have created digital twins, which will enable flatter organisations and reduce the number of knowledge-workers they need by 33%. And by 2023, 40 % of NZ workers will be working with bots or some other form of AI.
“There has been some misinformation about AI coming to ‘steal all the jobs.’ In reality, many roles will be augmented and extended with smart bots or some form of AI. This trend will require company leaders to redesign operational processes, performance metrics and recruitment strategies.
“At present 60% of NZ organisations don’t have any digital KPIs. IDC sees this changing quite rapidly, so by 2023, 85% will have digital KPI sets.
“By the end of 2020, successful businesses will be allocating capital budget equal to at least 10% of revenue to fuel their digital strategies. By the same time, 55% of NZ enterprises will have created data management and monetisation capabilities, enhancing enterprise functions, strengthening their competitiveness, and creating new sources of revenue. The other 45% will be in trouble if they cannot break free of their digital deadlock. Now, more than ever, speed and flexibility will beat size every time.”
NZ Digital Trends summary:
- By 2020, at least 55% of NZ organisations will be digitally determined, transforming markets and reimagining the future through new business models and digitally enabled products and services.
- By 2023, the CDO title will be in decline, as digital will have become fully embedded, but more than 60% of NZ CEOs will have spent part of their careers leading digital initiatives.
- The paramount importance of customer advocacy will result in 60% of B2C brands in NZ embracing Net Promoter Score as their leading success metric by the end of 2020.
- By 2020, 55% of NZ enterprises will create data management and monetisation capabilities, thus enhancing enterprise functions, strengthening competitiveness, and creating new sources of revenue.
- By 2020, 20% of NZ100 companies will have implemented advanced digital twins of their operational processes that will enable flatter organisations and one-third fewer knowledge workers.
- By 2023, 40% of NZ workers will start working with bots or other forms of AI, requiring company leaders to redesign operational processes, performance metrics, and recruitment strategies.
- By 2020, 25% of NZ100 companies will have allocated capital budget equal to at least 10% of revenue to fuel their digital strategies.
- By 2022, prominent in-industry value chains, enabled by blockchains, will have extended their digital platforms to their entire omni-experience ecosystems, thus reducing transaction costs by 35%.
- By 2022, approximately 25% of large manufacturers and retailers in NZ will have built digital trust through blockchain services that enable collaborative supply chains and allow consumers to access product histories.
- By 2023, 85% of entities will have incorporated new digital KPI sets — focusing on product/service innovation rates, data capitalisation, and employee experience — to navigate the digital economy.