What can CIOs and CEOs expect in terms of trends and technologies in the coming months? Kathy Gibson was at the IDC Directions conference to find out.

 

The reality of digital transformation

Trends and directions in the IT space could start sounding a bit repetitive – but digital transformation is real as the fourth chapter of the 3rd Platform sees innovation multiplied to drive the digital economy.

“We are starting to see it in the way businesses are structured,” says Mark Walker, associate vice-president: South Africa at IDC. “Businesses today are almost all dependent on technology.”

In fact, we are seeing a new generation of CIOs emerging who are not afraid of new technology, he adds.

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The bottom line for SA’s ICT market

Digital transformation is a reality around the world: but where do South African companies stand?

“In Africa, there is no one-size-fits-all,” says Mark Walker, associate vice-president: South Africa at IDC.

The local market is seeing slow growth – form 7,5% last year to 3,8% this year. Kenya is growing, from 1,4% to 5,4% and Nigeria is still experiencing slow growth of 2% this year, compare to 2,6% last year.

“If you have cutting edge technologies you will see huge growth rates,” Walker adds. “But the model has changed, and now you have to sell large volumes at lower margins.”

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The technology behind digital transformation

Digital transformation is now common practice, and just about every organisation is the world is doing it in some form or another.

In fact, spending on digital transformation is forecast to reach almost $2-trillion within the next five years, says Jonathan Tullett, research manager: IT services at IDC.

Leading enterprises have committed 10% of their two-year ICT budgets to digital transformation, led by companies in the manufacturing, retail and transportation industries, accounting for 50% of buying.

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