Digital transformation investments top $1.2 trillion in 2019
While consensus over what digital transformation actually means still appears to elude many members of the C-Suite, enterprise investment into the concept has never been higher, according to a recent report from IDC.
Across virtually every industry and sector, total spending on digital transformation will jump roughly 18 percent in 2019 to a new high-water mark of $1.18 trillion.
Gearing up for the “factory of the future”
Leading the charge will be the manufacturing sector, with discrete and process manufacturing expected to invest $221.6 billion and $124.5 billion, respectively, into digital transformation efforts. While the numbers are massive, this amount of investment is not altogether surprising, considering the terms Industrial IoT (IIoT) and Industry 4.0 have themselves taken on buzzword status in a similar vein to digital transformation.
While considered a bogeyman in some political circles, widespread automation is turning the often dirty and dangerous factory of the past into a more efficient, mechanized and safe ecosystem of sensors and beacons fueled by connectivity. While this has stoked fears about robots supplanting humans on the factory floor, the “next industrial revolution” is actually expected to see employment opportunities shift -- not disappear -- into roles that call for a different skill set.
Financial sector goes from a walk to a sprint with digital transformation
Although the manufacturing sector has long been working to embrace digital transformation, that’s not historically been the case with the financial sector, where adoption of new tech has been slow and apprehensive due to concerns around security and data management. According to this data, however, that’s all prone to shift, as the financial sector is seeing a 15-20 percent investment jump into new technology -- a larger increase than any other sector in the poll.
In total, the financial sectors investment into digital transformation is set to see a compound annual growth rate of 20.4 percent between 2017 and 2022, the report found.
"It is already clear from our research that the businesses which have invested heavily in [digital transformation] over the last 2-3 years are already reaping the rewards in terms of faster revenue growth and stronger net profits compared to businesses lagging in [new tech] initiatives and investments,” Craig Simpson, research manager with IDC’s Customer Insights & Analytics group, said in the report.
Regardless of industry, new tech investments are going to help define the enterprise space in the coming years. Before teams adopt new technologies, they need to be sure they have their eyes on all areas of the network to ensure their business operations are actually improved by their digital transformation.