IDC Philippines Unveils its Top ICT Predictions for 2017 and Beyond

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IDC Philippines announced its top predictions for the Philippine ICT industry for 2017 and beyond and predicts 25% of its top 1,000 companies will see majority of their business depend on their ability to create digitally enhanced products, services and experiences by 2020. 

IDC expects digital transformation (DX) will attain macroeconomic scale over the next three to four years, changing the way organizations operate and reshaping the global economy and calls this as the dawn of the “DX Economy”. 

“The rise of DX definitely has an incredible effect on the market. It opens massive opportunities for businesses as it helps strengthen relationships with end users, flattens organizational structures, and redefines traditional industries,” says Jubert Alberto, Business Operations Head, IDC Philippines. 

IDC Philippines' technology and industry analysts also revealed the strategic top predictions and major technology trends that are set to present opportunities and challenges to IT leaders in 2017 and beyond.

#1: DX Economy. By 2020, 25% of top 1,000 companies in the Philippines will see the majority of their businesses depend on their ability to create digitally enhanced products, services, and experiences. 

The market dynamics are quickly changing, and the enterprise must continually improve productivity and effectiveness while lowering costs in order to enable a transformation that will allow it to best compete in the constantly evolving market environment. 

"Year 2020 will see Filipino companies level up their DX journey to a macroeconomic scale, as their ability to offer digitally transformed offerings and experiences becomes an important measure of competitiveness and success in the market," says Karen Rondon, Research Manager for Enterprise Computing - Networking, IDC Asia/Pacific. 

#2: Pinoy DX Teams. By 2018, 25% of Philippine organizations will have dedicated digital transformation/innovation teams. 

"These specialized 'PH DX teams' will be in charge of formulating plans both for internal and external applications of digital technology. These include identifying and using new technologies to improve operations, creating digital marketing strategies, developing their IT capabilities, and other related initiatives," says Jan Edward Tañeca, Market Analyst - Imaging, Printing, Document Solutions (IPDS), IDC Philippines.

#3: More Strategic ICT Push. By 2021, the government will have a more strategic ICT push to enable technology adoption among Philippine organizations. 

Year 2016 has been a good year as far as the country’s ICT agenda is concerned. According to the latest findings of the United Nations E-Government Survey, the Philippines went up 24 notches to rank 71st out of 193 countries in e-government development. With a dedicated, centralized agency at the helm of the country’s ICT development, IDC sees that by 2021, the government will be able to lay the much-needed groundwork that would enable robust technology adoption among Philippine organizations and raise the nation’s standards to be on par with other digital economies. 

#4: Cybersecurity. By 2018, cybersecurity will become a tier-1 business priority receiving fixed capital spending for 30% of the top 1,000 companies in the Philippines. 

Increasing security breaches and attacks has significantly raised interest in and awareness of the need to modernize security infrastructure in the Philippines. "In the coming years, enterprises will realize that rather than reacting to global security trends, the best-run businesses try to anticipate them. Thus, they will make cybersecurity a core part of their overall business strategy, taking into account the existing security industry trends and evolving criminal tactics and couple those factors with the organization's risk tolerance, security program maturity, a holistic security strategy and, most importantly, business targets," says Jan Edward Tañeca, Market Analyst - Imaging, Printing, Document Solutions (IPDS), IDC Philippines. 

#5: Information-Based Products. By 2020, revenue growth from information-based products will be double that of the rest of the product/service portfolio for a quarter of the top 1,000 Philippine companies. 

“In the Philippines, companies in the telecommunications, retail, and banking industries, among others, have unlocked new opportunities in creating revenue through analyzing and making sense of the aggregated customer information. Some organizations that have explored these options benefited in the form of penetrating new markets and generating new revenue streams as the information may vary from customer data to consumer buying patterns,” says Nicolo Santos, Market Analyst – Imaging, Printing, and Document Solutions (IPDS), IDC Philippines. "This opportunity requires a constant effort for organizations to address data privacy and security issues, and government regulations that surround the collection, storage, use, and sale of consumer data.” 

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