The local office of analyst firm IDC has announced its top 10 predictions for the Philippine ICT industry for 2018 and beyond, with this year’s forecast highlighting the growth of the digital economy as many local organizations are now accustomed to leveraging strong digital innovation platforms.
IDC noted that while the Philippines has made significant developments in its overall digital ecosystem throughout the years, organizations must become digital-native enterprises (DNEs) in order to lead in the digital transformation (DX) economy.
“DNEs can harness the power of technology to multiply innovation and accelerate their businesses’ transformation. Therefore, IDC urges local enterprises to accelerate innovation as the emerging technology trends are set to redefine IT and businesses in the Philippines over the next three years,” it said.
Jubert Alberto, head of operations at IDC Philippines, said Filipino enterprises have a growing appetite for digital technologies. This is good, he said, as technology is not merely a tool, but an enabler for business leaders.
“The country’s ICT development has been showing significant progress from both the public and private sector domains. The combined efforts of these two stakeholders will usher a period of rapid and robust technology adoption,” Alberto added.
Alon Rejano, market analyst and IT services lead at IDC Philippines, observed that majority of organizations in the Philippines are still classified as digital resisters and digital explorers, which means that the country’s adoption of DX will still be slower than its regional peers.
“But we are also seeing signs of acceleration in DX among local firms, and this is a very encouraging trend for the current ICT environment,” Rejano said.
“Moving forward, becoming a digital-native enterprise is the next major step for Philippine organizations that want to be successful in a very competitive global digital economy,” he said.
Below are IDC’s strategic top predictions that will unfold in 2018 and beyond, resulting in the biggest impact to organizations in the country.
1. Out-of-the-Box Think Tanks. In the next three years, disruptive CIOs, who are out-of-the-box thinkers, will set the tone of the ICT development in the Philippines.
2. Upscaling Jobs through ICT. By 2021, the demands of the new borderless economy will push enterprises to manpower reskilling and upscaling jobs through ICT.
3. Authentication and Trust. By 2019, 20% of CIOs will shift their cybersecurity focus toward ?authentication and trust? to better handle business risks.
4. Workspace 360. By 2019, the rise of the digital natives and the influence of digital-native mindset on enterprises will push novel workspace trends.
5. Digital Empowerment: Non-Disruptive Digital Disruption. In the next two years, the country’s continuing journey toward digital transformation will pave the way for retail and financial technologies and services that integrate seamlessly into the daily lives of the local community.
6. Personalization is the New Standard. In the next 12 to 24 months, utilizing digital-driven, customized, and personal approaches to customer intimacy and talent acceleration will become a standard practice among Philippine enterprises.
7. Future of Payments. By 2019, the country will continue to witness creative and Philippine-centric payment and remittance innovations, driven by the country’s unbanked sector and the ongoing rise of remittances from overseas Filipino workers (OFWs).
8. DX in BPO Industry. By 2019, as digital transformation shakes up the BPO market dynamics, BPO providers that align their DX plans with the changes in the industry will gain competitive edge in the market.
9. Analytics-Driven Marketing. In the next five years, Philippine enterprises that incorporate analytics and customer insights into their marketing will see a commanding lead over competitors in customer retention and profitability.
10. Digital Economy Tipping Point. In the next 12-36 months, enterprises are headed to a different higher level of maturity when it comes to DX adoption. In the same manner, clearer digital vision for the country should be seen, as the government barrels up its ICT initiatives.