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1© IDC, 2017
2
Welcome to the future enterprise:
tech-everywhere, platform-based, ecosystem-centric
with innovation as the norm.
Sounds cool, doesn't it? But the question for all organizations is, how
do we get there?
IDC's predictions are focused on helping organizations understand the
2020 action plan across the following critical areas:
• Technology: Which emerging technologies need to be incorporated
into platforms to underpin the future enterprise?
• Leadership: How will the key stakeholders of the digital dream
team execute on the road map?
• Value: How can organizations redefine value to incorporate not just
financial metrics but also ecosystem and social impact elements,
taking into account the ethical impact of technology on society?
In this document, you will find the decisions that should be made
for 2020 through the lens of the CEO. The objective is to ensure that
we remove the traditional IT/business/digital debate once and for
all.
"We created 10 game-changing predictions that we think are going
to shape the market in 2020 and beyond. We highlight the future
enterprise and how we need to redefine value, leadership, and
technology as we move toward the future. We hope these
predictions will help European enterprises to plan their 2020
strategies." said Phil Carter, Chief Analyst at IDC.
Looking forward to 2020
01
02
03
04
START UPSResearch Innovation Councils
VENDORS Briefings, events and presentations
ANALYSTSInsights, Opinions and Data Analysis
TECH BUYER COMMUNITYCIOs, CxOs, CISOs, Heads of Innovation
Thank You to the Community
© IDC 62
By 2021, 82% of the revenues derived from DX business models will be
ecosystem driven By 2022,Digital risk will become a standard reporting mechanism as part of financial statements
By 2020,60% of enterprise blockchain investments will be driven by the
need to enable ecosystem business models that rely on the secure exchange of data
CX will become the new enterprise competitive differentiator that creates a $47 Billion market in Europe by 2022
By 2019, 60% of all European CIO will be implementing a new IT
foundation as part of an organization-wide DX platform strategy
By 2020, 60% of organizations will use two or more cloud platforms leading companies to seek Multi-cloud management services to reduce complexityBy 2022,
50% of the initial analysis of IoT data will occur at the Edge
By 2020, Lack of IT skills will affect 90% of all European organizations resulting in $91b of lost revenue annually
By 2022,one in four employees in large European businesses will have
an intelligent digital assistant to handle routine work, enhancing their productivity by over 20% By 2021,
75% of European enterprises will use digital KPIs to drive and reinforce their transformation
1
3
5
4
6
7
9
8
2
10
0
10
20
30
40
50
60
70
Brexit Trade wars Economic
Slowdown
Low / No impact
Moderate
impact
IDC C-Suite FutureScape Poll
Source: IDC FutureScape C-Suite Poll, 2019. N=40
Impact of Macro-economic Events on European Organizations in 2020
European Union GDP Annual Growth RateSource: tradingeconomics.com
Time for Financial Discipline
GDP Forecast Growth Rate
of 1.4% in 2020
Source: IDC Europe, 2019
BP boss Bob Dudley to step down next year after a decade
as CEO
Google founders Page and Brin
announced that Google CEO Sundar
Pichai will be replacing Page as the CEO of
parent company Alphabet.
Peter Plumb makes
surprise exit from Just Eat
Harald Kruger steps down as CEO of BMW
Gavin Patterson leaves his
post as CEO of BT
Tesco chief executive
Dave Lewis steps down in
surprise departure
HSBC has unexpectedly parted
ways with its chief executive, John Flint, less than 18 months
after his appointment
WeWork founder Adam Neumann is stepping
down as CEO of The We Company
The chief executive of RBS, Ross McEwan, has
resigned after five and a half years in the post
ServiceNow names former SAP chief Bill
McDermott as CEO
Teradata Appoints Oliver RatzesbergerPresident and CEO, succeeding Victor L.
Lund
Teradata announces CEO
Transition Victor L. Lund appointed
Interim CEO
Unit4 appoints Mike Ettling, former SAP
SuccessfactorsPresident, as CEO
HP announces CEO Dion Weisler is
stepping down after four years in the
role
Mike Lawrie steps down as DXC CEO,
Mike Salvino to take the leadership
Expedia CEO, CFO resign after
clash over strategy with
board
Guess CEO Victor Herrero to step
down, former top executive Carlos
Alberini named as his replacement
Q2 2019Q1 2019 Q4 2019Q3 2019
The Mounting Pressure to DeliverLeadership Changes: CEOs Under Pressure
80%Of the CEOs are under pressure to execute a
successful Digital Transformation
Source: IDC FutureScape poll, 2019. N=40
Future Enterprise
© IDC, 2017
VALUE STRATEGY BUSINESSMODEL
TECH PEOPLE
Digital Impact Framework
Delivering Business Outcomes from Digital Investments
By 2022,
25% of the top 500 European
companies will have at least
two board members with
digital business excellence
capabilitiesSource: IDC European FutureScape 2020
The ‘New’ BoardHome of a Diverse Skill-Set
VALUE STRATEGY BUSINESSMODEL
TECH PEOPLE
Digital Impact Framework Delivering Business Outcomes from Digital Investments
$ FinancialRevenue & Profit
EcosystemCo-creation & Co-opetition
PurposeEnvironmental & Societal
The New Definition of Business Value
$ Financial35% growth on digital business in 2018Tripled Share Price in 3 Years
EcosystemStrong Commitment to open source
Purpose11 million shoes produced using recycled ocean plastic
The New Definition of Business Value
VALUE STRATEGY BUSINESSMODEL
TECH PEOPLE
Digital Impact Framework Delivering Business Outcomes from Digital Investments
Consumer in control
Transformation of Networks
Digitisation & Technology
Social Commitment & Sustainability
98%Germany
94%United Kingdom
93%France
95%Russia95%
of European Organizations plan to Sustain or Increase their Tech Budgets in 2020
Source: IDC European Tech and Industry Pulse Survey 2019-2020, Dec 2019 (n=2793)
96%Italy
91%Czech Republic
96%Spain
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2018 2019 2020 2021 2022 2023
European Tech Spend 2018-2023 ($M)
Source: IDC Worldwide Digital Transformation Spending Guide, 2018H2Note: IT Spending excludes Telco and Business Services
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2018 2019 2020 2021 2022 2023
European Tech Spend 2018-2023 ($M)
Source: IDC Worldwide Digital Transformation Spending Guide, 2018H2Note: IT Spending excludes Telco and Business Services
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2018 2019 2020 2021 2022 2023
31%
51%
DX
Digital Transformation Spend Will Account for
51% of Total IT Spend in Europe by 2023
In 2020, European organizations will spend over
271 Billion dollars on Digital
Transformation, but only 16%will deliver new revenue streams
Source: IDC European FutureScape 2020
VALUE STRATEGY BUSINESSMODEL
TECH PEOPLE
Digital Impact Framework Delivering Business Outcomes from Digital Investments
24
Suppliers New Customers
Co-creators Product & Services
Customers Prosumers
The Value Loop of the Future
Data-Driven Platform-Enabled Ecosystem-Centric
Enterprise Data Growth in Europe
27%YoY Growth
3,7 million Petabytes
by 2020Source: IDC Global DataSphere, 2019.
Data Visualization
Top Market Deals 2019
$26,2BSalesforceAcquires
Tableau for
$15,7B
SAPAcquires
Qualtrics for
$8B
Google announced its plan to buy
Looker for
$2,6B
02
03
DATA Consolidation
DATAVisualization
04
The Data Maturity Journey
01
DATA Analytics
DATAMonetization
Value Strategy BusinessModel
PlatformPeople
The Digital Outcome Framework
The Digital Blueprint for Multiplied Innovation
By 2022,
data collected from connected
devices will generate a revenue
opportunity of $10,5B for the
top 500 European OrganizationsSource: IDC European FutureScape 2020
29
36 millionpoint-earning activities
Vitality Shared-Value Insurance
14% £64 million
New Business
Operating Profit
108%
Lives Covered
7% to 577000
Member Engagement
Behavioural Clinical + Financial Actuarial Data
PLATFORM
30
30
Suppliers New Customers
Co-creators Product & Services
Customers Prosumers
The Value Loop of the Future
Real-time Retail Economy
The Microgrid Economy
The as a Service Economy
Open Banking Economy
VALUE STRATEGY BUSINESSMODEL
TECH PEOPLE
Digital Impact Framework Delivering Business Outcomes from Digital Investments
The Technology Foundation of the Business Models of the Future
By 202560% of European organizations will
modernize their core IT leveraging
the cloud resulting in a 25% business productivity improvement Source: IDC European FutureScape 2020
Source: IDC Europe, 2019
Q2 2019Q1 2019 Q4 2019Q3 2019
2019The Next Phase of the Hyperscaler Revolution: Big Deals, Partnerships & the Ecosystem Expansion
VW and AWS announce partnership to develop
the Volkswagen Industrial Cloud together. Siemens is also included as part of
the deal
Microsoft invests $1 billion in
OpenAI as part of strategic partnership
Microsoft and Oracle in major partnership to
interconnect Azure and Oracle Cloud
offerings
Microsoft and SAP enter into 3-year partnership to run S/4 HANA
in Azure
Microsoft announced an open manufacturing
platform, with BMW Groups a key first
partner
AWS announces new cloud
region in Spain to come online
in 2022
Google and ServiceNow is major strategic partnership
around ML/AI and service integration
Google expands strategic partnership
with OpenText around enterprise information
management
Microsoft wins $10 billion JEDI
contract with the US Department of
Defence
Microsoft announces partnerships with Renault-Nissan-Mitsubishi for connected car
experience
Allianz partners with Microsoft to digitally transform
the insurance industry
Microsoft and Daimler signs strategic
partnership around cloud data and
analytics
Google acquires CloudSimple
If you are planning to migrate SAP workloads to the public cloud,
which environment are you planning to move to?
Source: IDC Multicloud Survey, 2019 N=218
AWS
Microsoft Azure
Google Cloud Platform
IBM
Others36%
28%
18%17%
Azure IBM AWS GCP
Overall Cloud Platform Market Share in Europe
Source: IDC Public Cloud Tracker, 2019
Perception in Mission Critical WorkloadsSAP example
Others
73 %Of the European CIOs
want to be ‘The Orchestrator’ of
Digital Transformation Source: IDC CIO Summit 2019 pre-event survey (n=46)
By 2022,
30% of European organizations will define
a new technology leadership role
combining CIO, CTO, CDO &
Innovation functions
Source: IDC European FutureScape 2020
© IDC38
How is the CIO (or the head of IT) in your organization currently measured?
4%
27%
55%
55%
79%
82%
Others
Revenue Management
Customer Satisfaction
Risk Management
Cost management
Business Alignment
Source: IDC FutureScape poll, 2019. N=40
By 2023,
70% of European Intelligent
Process Automation (IPA)
initiatives will be infused by AISource: IDC European FutureScape 2020
Forecast Design Make Deliver
Retire/ReplaceEvaluate
UseBuy
Service
Automated, Connected & IntelligentProcesses
SaabDefence & Security
KBIs
Return on Experience
Customer Effort Scores
Experience Level Agreement
Employee Net Promoter Score
Key Behavioural Indicators - KBIs
Clients do not come first. Employees come first. If you take care of the employees, they will take
care of the clients. ”Richard BransonFounder of Virgin Atlantic
By 2022,
60% of the TOP 2000 European
organizations will replace KPIs with KBIs to accelerate employee and customer advocacy
VALUE STRATEGY BUSINESSMODEL
TECH PEOPLE
Digital Impact Framework Delivering Business Outcomes from Digital Investments
The Digital Dream Team
Finance Leaders
CFO, Finance Director
Technology Leaders
CIO, CDO , CTO, Head of Innovation
Security/Risk Leaders
CISO, CRO, DPO
Customer Experience Leaders
CMO, Head of CX, Head of
Digital Experience
Operations Leaders
COO, Head of Supply Chain
Employee Experience Leaders
CHRO,
Head of Talent , People &
Culture
The Financial Impact of the Digital Skills Gap in Europe
Mind the Skills Gap
By 2022,
a third of European organizations will fail to accelerate business
agility and innovation due to a
copy-cat culture
Aviva’s Digital Garage
App Explosion
Developer Explosion
Embedded in the Business
From Innovation Lab to Innovation FactoryThe Catalyst for Cultural Change
Endpoint Security
Identity & Digital Trust
Software
Messaging Security Software Network Security
Security Analytics,
Intelligence, Response and
Orchestration
Web Content
Inspection Software
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
4% 5% 6% 7% 8% 9% 10% 11%
The Security Market Opportunity in Europe
YoY Growth – 2020/2019
Sh
are
of
Tota
l M
ark
et
20
20
Size of bubbles: market opportunity 2020
Source: IDC European Software Tracker, 2018H2.
Security Operational Excellence
Risk Management to Deliver Business Impact
Digital Trust Enabling Digital Transformation
IDC’s Roadmap to Security Value
2022is the cut-off point for CISOs to
establish themselves as
business leaders who can
provide digital trust
Source: IDC European FutureScape 2020
Risk Manager
Crisis Handler
Financial Acumen
Trust Enabler
Communication Skills
Future CISO Beyond Technical Expertise
54© IDC, 2017
By 2024,
50% of European public
companies will report annually
on the ethical use of data, automation, and AI in their
organizations
Source: IDC European FutureScape 2020
55© IDC, 2017
ING launches Data Ethics Council and Data Ethics Principles to guide AI application development and operations
$ FinancialRevenue & Profit
EcosystemCo-creation, Coopetition
PurposeEnvironmental & Societal
The New Definition of Business Value
57
Suppliers New Customers
Co-creators Product & Services
Customers Prosumers
The Value Loop of the Future
Data-Driven Platform-Enabled Ecosystem-Centric
58
Suppliers New Customers
Co-creators Product & Services
Customers Prosumers
The Value Loop of the Future
Data-Driven Platform-Enabled Ecosystem-Centric
TRUST
© IDC 62
By 2022,25% of the top 500 European companies will have at least two board
members with digital business excellence capabilities
In 2020, European organizations will spend over 271 Billion dollars on Digital Transformation, but only 16% will deliver new revenue streams
By 2022, data collected from connected devices will generate a revenue opportunity
of $10,5B for the top 500 European OrganizationsBy 2025 60% of European organizations will modernize their core IT leveraging the cloud resulting in a 25% business productivity improvement
By 2022,30% of European organizations will define a new technology
leadership role combining CIO, CTO, CDO & Innovation functions
By 2023, 70% of European Intelligent Process Automation (IPA) initiatives will be infused by AI
By 2022, 60% of the TOP 2000 European organizations will replace KPIs with KBIs to
accelerate employee and customer advocacyBy 2022, a third of organizations will fail to accelerate business agility and innovation due to copy-cat culture!
2022is the cut-off point for CISOs to establish themselves as
business leaders who can provide digital trust
By 2024, 50% of European public companies will report annually on the ethical use of data, automation, and AI in their organizations
1
3
5
4
6
7
9
8
2
10
Source: IDC European FutureScape 2020
VALUE STRATEGY BUSINESSMODEL
TECH PEOPLE
Digital Impact Framework
95%1.4% 16% 35% $180B
Tech Everywhere
‘Do Well & Do Good’
‘Strategy@Scale’
Uncertain Times
Exponential Thinking
Use Case Obsession
‘The Money Makers’
‘Intelligence, Automation, Connectivity’
DIY Culture
‘Mind the Skills Gap’
Explore more predictions content:uk.idc.com/trends/european-futurescape-2020
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