IDC predicts in one of its recent reports that by 2023, organizations that allocate over 50% of their software development projects to customer facing initiatives will see revenue grow 15% faster compared to those that focus more on internal projects.
From planning and sourcing to development and distribution, software-led digital creativity demonstrably moves markets, fosters resilience, and builds new audiences. To get there, Asia Pacific leaders are carefully aligning operations, development, and business stakeholders to deliver optimum value to the customers, employees, and partners they serve.
"The progress is stunning. On some key measures of innovation, Asia Pacific organizations are matching or even exceeding their global counterparts," says Gina Smith, PhD, research manager for DevOps and digital innovation in the Asia Pacific region. "As they enter their third COVID-19 pandemic year, IDC expects enterprises to continue to accelerate digital innovation efforts," she adds.
IDC's Future of Digital Innovation top 10 predictions provide guidance for business leaders on how best to innovate software moving forward.
- Digital drives revenue: by 2025, enterprises that successfully generate digital innovation will derive over 25% of revenue from digital products, services and/or experiences.
- Customer-facing first: by 2023, organizations that allocate over 50% of their software development projects to customer facing initiatives will see revenue grow 15% faster compared to those that focus more on internal projects.
- Marketplaces and acquisitions: to help alleviate the developer skills shortage, 55% of organizations will use cloud marketplaces and tech start up acquisitions as their most important approaches to software sourcing by 2024.
- Developer ecosystems: by 2025, companies that have already invested in building a developer ecosystem will expand their customer base by 25%.
- Supply chain security: securing the software supply chain will be a core competency embraced by 75% of large digital innovators by 2023.
- Tech to go direct: by 2024 traditional distribution models crumble as 20% of businesses in some sectors use technology to go direct to customers, seeking to improve customer satisfaction and product development.
- Turning products into service: by 2026, 30% of software development teams will be focused on turning traditional products into outcomes as a service.
- Software development insourcing: half of the Asia 500 will have insourced software development significantly by 2026, exacerbating the software engineering skills shortage and fuelling interest in software development efficiencies.
- Heterogenous teams: by 2024, 55% of successful digitally innovative products will be built by teams that include people with creative, critical thinking, analysis, and automation skills, as well as software engineers.
- Machines as programmers: by 2026, 60% of newly developed applications will include some automatically generated code, freeing up humans to focus on development tasks that are not easily automated.
Each year, IDC releases its Top Predictions through its IDC FutureScape reports to give a crystal ball view of what is ahead for the rapidly changing ICT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1–5 years.