According to the new Worldwide Digital Transformation Spending Guide from International Data Corporation (IDC), worldwide spending on digital transformation (DX) technologies will grow to more than $2.1 billion in 2019 with a compound annual growth rate (CAGR) of 16.8% over the 2014-2019 forecast period. Spending on DX technologies in the United States will follow a similar trajectory, reaching nearly $732 million in 2019.
IDC defines Digital Transformation as the continuous process by which enterprises adapt to or drive disruptive changes in their customers and markets (external ecosystem) by leveraging digital competencies to innovate new business models, products, and services that seamlessly blend digital and physical and business and customer experiences while improving operational efficiencies and organizational performance. Digital transformation involves enterprise-wide change requiring innovation in at least one of the following areas – Organization (i.e., workforce); Omni-Experience (i.e., customer); Operating Model (i.e., business model/process changes); Information; or Leadership – as a part of a technology implementation.
Enterprises are forecast to invest the most (nearly half the worldwide total in 2019) on DX technologies that support operating model innovations. These investments will focus on making business operations more responsive and effective by leveraging digitally-connected products/services, assets, people, and trading partners. Investments in operating model DX technologies help businesses redefine "how" work gets done by integrating external market connections with internal digital processes and projects.
Photo: The Energy Department's Manufacturing Demonstration Facility at Oak Ridge National Laboratory includes an array of state-of-the-art additive manufacturing capabilities, allowing researchers and industry to develop innovative manufacturing solutions. | Photo courtesy of Oak Ridge National Laboratory.