Story image

IDC: Top 10 trends for NZ’s digital transformation

12 Feb 2019

IDC has released its 2019 Top 10 digital transformation trends for New Zealand. IDC says 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, IDC says the Chief Digital Officer title will be short-lived and declining 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.

IDC A/NZ research director Louise Francis says that while a little over half of New Zealand organisations will be digitally determined by 2020, customer advocacy will be key to success.

“We estimate that by the end of 2020, more than 60% of New Zealand business-to-consumer organisations will have adopted Net Promoter Score as their leading success metric. In the same time 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%,” she says.

According to Francis, by 2023, 40% of NZ workers will be working with bots or some other form of AI.

“There has been some misinformed comment 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,” adds Francis.

This trend will require company leaders to redesign operational processes, performance metrics, and recruitment strategies. At present, 60% of NZ organisations do not have any digital KPIs. IDC sees this changing quite rapidly, so by 2023, 85% will have digital KPI sets.” 

The IDC analyst says by the end of next year, successful businesses will be allocating capital budget equal to at least 10% of revenue to fuel their digital strategies.

“By the end of 2020, 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.” Francis says.

“Now, more than ever, speed and flexibility will beat size every time."

Trends at a glance

  1. 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.
     
  2. 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.
     
  3. The paramount importance of customer advocacy will result in 60% of B2C brands in New Zealand embracing Net Promoter Score as their leading success metric by the end of 2020.
     
  4. 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.
     
  5. By 2020, 20% of NZ100 companies will have implemented advanced digital twins of their operational processes, which will enable flatter organisations and one-third fewer knowledge workers.
     
  6. 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.
     
  7. By 2020, 25% of NZ100 companies will have allocated capital budget equal to at least 10% of revenue to fuel their digital strategies.
     
  8. 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%.
     
  9. 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.
     
  10. 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.
GoCardless to double A/NZ team by end of year
With a successful E round of investment and continuing organic growth globally, the debit network platform company aims to expand its local presence.
NZ’s Maori innovators are on the rise
“More iwi investors need to recognise that these sectors will provide the high-value jobs our children need."
Phone ringing? This biohack wants you to bite down and ChewIt
So your phone’s ringing, but instead of swiping right or pushing a Bluetooth button you bite down on a tiny piece of tech that sits in your mouth.
How big data can revolutionise NZ’s hospitals
Miya Precision is being used across 17 wards and the emergency department at Palmerston North Hospital.
Time's up, tax dodgers: Multinational tech firms may soon pay their dues
Multinational tech and digital services firms may no longer have a free tax pass to operate in New Zealand. 
Spark’s new IoT network reaches 98% of New Zealand
Spark is the first company to confirm the nationwide completion of a Cat-M1 network in New Zealand.
WhatsApp users warned to change voicemail PINs
Attackers are allegedly gaining access to users’ WhatsApp accounts by using the default voicemail PIN to access voice authentication codes.
Robots to the fore – Key insights for New Zealand Business into RPA in 2019
From making artificial intelligence a business reality to closer ties to human colleagues, robotic process automation is gearing up for a strong 2019.