Dive Brief:
- International Data Corporation updated its “Worldwide Digital Transformation Spending Guide” to forecast global spending on digital transformation tech will reach $1.2 trillion this year, a 17.8% increase over 2016 per a company press release.
- The forecast estimates almost half of all digital transformation tech spending will happen in three categories: connectivity services, IT services and application development & deployment. The fastest growth will come from retail, healthcare providers, insurance, and banking
- Businesses are being compelled to invest in digital transformation due to changing competitive landscapes and consumerism, according to Eileen Smith, program director in IDC's Customer Insights & Analysis Group, in the press release. Smith added that this spending is improving the customer experience, operational efficiencies and optimizing the workforce.
Dive Insight:
The fastest growing tech categories for investment in 2017 are cloud infrastructure (29.4% compound annual growth), business services (22.0%), and applications (21.8%). Although the report doesn't drill down into marketing technology specifically, it’s clear that that the top categories for spending this year, as well as the fastest growing categories, all align with the martech space.
The findings underscore how consumers and customers are demanding seamless omnichannel experiences and greater personalization, challenging businesses to take a close look at third-platform spending, cloud analytics, mobile and social technologies as well as innovation accelerators like Internet of Things, cognitive software, and 3D printing.
A key focus this year for businesses will be investing in digital transformation that integrates external market connections with internal digital processes and projects in order to make business operations more responsive and effective. More than half of all digital transformation investments in 2017 will fall into this category.
Businesses will also invest heavily in technologies that support omni-experience innovations that transform how customers, partners, employees and things communicate with each other. Meeting unique and individualized demand through products and services will be another area of investment.
The high level of spending across types of business in digital tech considered transformational indicates that the digital revolution is disrupting all business sectors.
