Within three years, digital transformation will no longer be a buzzword, but rather a business necessity. This is according to a new report from Micro Focus, which claims global business is approaching a “tipping point” for digital transformation.
Research conducted by the firm suggests half of global IT spending will go into digital transformation initiatives by 2023 and almost half (46 percent) of global GDP will be driven by digitally-transformed businesses.
The report also states that two thirds of businesses are expected to have modernised systems of record and to move beyond early stages of AI and Machine Learning.
Data businesses all over the world create will grow at a CAGR of 25.8 per cent and businesses pursuing digital transformation are building systems to manage and exploit this opportunity, claims the report.
For Joe Garber, Global Head of Strategy & Solutions at Micro Focus, “digital determination” will prove the key differentiator among businesses, which he describes as the capacity and dedication to come through with digital transformation projects.
“Although core business systems are the lifeblood of the organisation, only five percent of the organisations we studied have built enduring strategies of DX success," he said.
"Rather than adopting a rip-and-replace strategy that can yield unacceptable risk, we are seeing that most businesses need to instead pursue an assertive modernisation strategy.”