IDC Predictions for Digital Transformation in Indonesia

Ilustrasi (dok)

JAKARTA (IndoTelko)   – IDC Indonesia announced  its top predictions for the country and highlights how digital transformation (DX) is accelerating growth on the 3rd platform and challenging current CIO leadership model.

International Data Corporation (IDC) Indonesia predicts that by end of 2016, more than 60% of Indonesian CEOs will be "walking the talk" in driving digital transformation (DX) initiatives as part of a larger corporate strategy.

"In 2016, we will see the CEOs and IT collaborating even closer in the face of stiff competition. Resistance to change will still exist, however, majority of organizations will now see feel enough of a pinch to move into transformation over-drive", says Sudev Bangah, Country Manager of IDC Indonesia.

This year, IDC's top predictions are re-branded as IDC FutureScapes for both tech buyers/CxOs and ICT suppliers exploring the transformation within end-user organizations and the country as a whole.

IDC Indonesia unveiled the top 10 predictions from these mega themes and how this will impact the tech buyers/CxOs and the ICT suppliers in the country at large.

#1: CEO-led strategy in DX. By the end of 2016, more than 60% of Indonesian enterprises will have the CEO heavily involved in IT decisions for the organization as the impact to LoBs heighten.

#2: Resistance remains widespread. In spite of 68% of CEOs being "digital supporters", organization wide resistance to evolve into a digitally based enterprise will remain prominent through 2016.

#3: Outsourcing truly materializes. By 2016, IDC anticipates for a larger shift to IT and BP Outsourcing with Indonesia growing to US$500m, and will double to a US$1b market by 2020.

#4: Traditional business model disrupted. By 2016, 78% of Indonesia enterprises will have their traditional business models disrupted by a changing business environment and competition from "internet era" companies.

#5: IT Vendor fundamentals change. In 2016, local and global vendors serving Indonesia enterprises will see the fundamentals of their respective GTM business approach evolve towards a 3P and IA emphasis.

#6: Customer centricity emerges. At present, less than 14% of Indonesian Enterprises have a "customer centric" focus. IDC believes that this will change significantly in 2016 and beyond, as hyper-competition arrives.

#7: SMBs are still not a market. Indonesia has circa 57.9 million SMEs, that contributes 59% of the GDP and 97.3% to the country's workforce. However, IT Spending is predicted to barely touch US$800m in 2016.
 
#8: Start-Ups invigorate the industry. In 2016, the government will levy heavy emphasis and create a platform for Indonesian startups.

#9: Government focus on ICT. In 2016, IDC expects the Government to move away from simplistic thinking of basic internet and smart phone penetration, and to truly focus on digitalizing the economy.

#10: Lead agency for ICT proliferation. In 2016 and beyond, IDC predicts that the Government of Indonesia will begin the foundations of an independent ICT lead agency, to drive the ICT agenda for the country.

“By the year 2020, IDC predicts a cohesive ICT ecosystem to exist in Indonesia, with a fine balance between technology and telecoms providers, government agencies and end-user organizations. This ecosystem will exist within the confines of ICT as a sector, and ICT as an enabler that will represent Indonesia's next engine of growth”, Sudev added.

In closing, IDC predicts that the fundamental change within the tech buyer organization will force the hand of digital transformation that changes the face of the IT industry. By 2020, more than 30% of the IT vendors will not exist as we know them today, requiring re-alignment towards end-users and the country at large.(es)