The message for business leaders for 2020 is very clear. Reclibrate, Remodel and Restructure.
There will be an urgent need to align with the emerging paradigm of competing demands, operationalize a recalibrated strategy and transform business on the trio of As. The times will be very painful for those who do not come to terms with the urgent needs.
Our annual research ‘Business and IT Priorities’ highlights five key trends for 2020.
1. New Paradigm of ‘Competing Demands’ will set deeper in 2020
Businesses across industries are disrupted not only by digital but also by the challenging economic situation.
The new paradigm is basically about addressing agility and efficiency as the key strategic focus areas, as businesses struggle to sustain themselves.
The agendas compete for attention and resources, thus not allowing for the ‘either – or’ choice. Amid this dilemma, enterprises are looking at digital as the unifier that allows them to address these agendas together.
2. Business Strategy Recalibration will become urgent in 2020
Amid dull economic scenario, enterprises are recalibrating their business strategies and restructuring their business models. With product and service innovation and ecommerce or new customer channels being high on their 2020 business priorities, businesses are kind of trying to change their engine while still driving their cars.
Many may not succeed. 2020 is the year, when many enterprises will face the urgency to recalibrate their business strategy and transform their organization to support the same.
3. Automation, Analytics and AI, the trio of Digital will get big boost in 2020
Operational efficiency by automating every bit of processes, both business and IT, leveraging data by analytics and building autonomy through AI are three powerful levers that are all set to deeply transform businesses.
But the trio of As requires the underlying IT architecture and applications to also get overhauled and unify together for data standardization, integration and sharing across.
The automated, integrated and autonomous platform is a key focus for 2020.
4. One out of Three Dollars on IT Spend will be on Digital in 2020
Though the overall India IT spend is estimated to grow at 8.1% in 2020, the traditional IT (PCs, Servers, Storage, Network, in Premise Enterprise Applications) shall remain almost flat in 2020. The spend on digital (SMAC, AI, ML, Cloud Infra and applications, IoT, Bots, Blockchain) shall grow at 21%.
In 2020, digital spend shall account for 33% of the overall IT spend by the Indian enterprises.
5. Vendors must emphasize Business, not just Digital Transformation in 2020
The core imperatives to recalibrate, remodel and restructure that are likely to rule in 2020 is all about transforming the business.
Digital Transformation is about technology on one hand (the endeavour to build automated, integrated and autonomous tech platforms) and business on the other hand (process capability to deliver agility, efficiency and sustainability).
The technology vendors must emphasize upon business, the narrative has been overtly focussed on technology till now.