adapting to the new competitive forces in a post-pandemic
TRANSCRIPT
Adapting to the New Competitive Forces in a Post-Pandemic WorldMeredith Whalen
Chief Research Officer
IDC@meredithwhalen
The Quicker One Adapts, the Sooner One Can Accelerate
Digital Adaptation Projects that address
areas that were revealed as weaknesses during the pandemic
Projects that support new operational requirements brought on by the pandemic
Digital Acceleration Projects that introduce
business model innovation
Projects to help capture market share
Adapting to the New Competitive Forces in a Post-Pandemic World
How the marketplace is being redefined
Where organizations are making tech investments to adapt
How tech suppliers need to adapt to new buyer requirements
John Donahoe – President and CEO, Nike
“…digital acceleration brought on by COVID-19 was indicative of a
new future marketplaceand not a temporary phenomenon.”
Porter’s Five ForcesRevisited for the Post-COVIDMarketplace
Threat ofNew Entrant
Threat of Substitution
SupplierPower
BuyerPower
CompetitiveRivalry
BuyerPower
Threat ofNew Entrant
Threat of Substitution
SupplierPower
CompetitiveRivalry
A New CustomerConstruct is Taking Shape
Digital Commerce
XaaS Offerings
Personalized Experiences
Speed and Convenience
@Home
Profit with Purpose
The New Buyer
Experience
The Healthcare Industry Adapts to Digital Substitutes
Threat of Substitution
10.5 million visits in 2020,2x higher than their
forecast in Feb, 2020
SupplierPower
“This pandemic…has also exposed the need to…support rapid innovation to keep pace with consumer expectations and other market forces.”
Rita KhanMayo Clinic’s 1st CDO
CompetitiveRivalry
The New Buyer
Experience
Threat ofNew Entrant
The EntertainmentIndustry Adapts to a New Distribution Model
SupplierPower
“…we are planning to bring consumers 17 remarkable movies throughout the year, giving them the choice and the power to decide how they want to enjoy these films.”
Jason KilarWarnerMedia CEO
Threat ofNew Entrant
Threat of Substitution
The New Buyer
Experience
The New Buyer
Experience
All Industries Adapt to New Digital Entrants
Threat ofNew Entrant
Threat of Substitution
SupplierPower
CompetitiveRivalry
RETAILTECH
2692COMPANIES
PROPTECH
2059COMPANIES
FINTECH
4317COMPANIES
LEGALTECH
1190COMPANIES
BIOTECH
4411COMPANIES
EDTECH
4764COMPANIES
CLEANTECH
1786COMPANIES
AGTECH
1944COMPANIES
Source: Crunchbase
Organizations Will Spend the Next 3 Years Adapting to the New Marketplace
Source: Future Enterprise Resiliency & Spending Survey, IDC, February 2021. n= 738 Worldwide Tech Decision Makers
17.6% 18.7% 17.2%
2020 2021 2022
Percent of technology expenditures towards projects that address changes triggered by the COVID-19 pandemic.
59%Digital Trust Programs
SecurityPrivacy Tech
Tech for Social, Environmental, Responsibility
and Ethics
59%Customer Experience
ProgramseCommerce
Customer SupportCustomer Intelligence
61%Business Operations Resiliency ProgramsAutomation Technologies
Augmentation Technologies
58%Digital Infrastructure Resiliency Programs
CloudEdge Infrastructure
Autonomous IT
Top Programs for Adaptation Investment
Source: Future Enterprise Resiliency & Spending Survey, IDC, February 2021. n= 738 Worldwide Tech Decision MakersQ: For each program below, what are your organization's technology priorities over the next 2 years to ensure the long-term resilience and success of the business? Showing % reporting priority or top priority.
A Balancing Act
Grant F. Reid – CEO, Mars
“You can’t be 100% focusedon this crisis and you can’t be100% focused on the future”
A New C-Suite Agenda for Running the Future Enterprise
A Balancing Act to Support Employees & CustomersShort-term adaptations within the context of long-term design points
Short-term Adaptation Long-term Design Point
Digital InnovationsDigital Services
Empathetic ExperiencesContactless Experiences
Connecting ExperiencesConnecting People
Trusted Organization Secured Organization
Work from AnywhereWork from Home
A Balancing Act to Support OperationsShort-term adaptations within the context of long-term design points
Ubiquitous Digital InfrastructureScalable Digital Infrastructure
Autonomous Operations Remote Operations
Short-term Adaptation Long-term Design Point
Insights at ScaleData Driven Insights
Monetized Industry EcosystemsShared Industry Ecosystems
Meet Your Customers Where They Are
STAGE 1Business
Continuity
STAGE 2Cost
Optimization
STAGE 3BusinessResiliency
STAGE 4Targeted
Investments
STAGE 5Future
Enterprise
Business Focus
Adapters Business Objective
“…we have accelerated our transformation to a digital-first company, fast-tracking several
investments in innovation and digital technology, which are driving sales and higher customer
engagement. Molly Langenstein – CEO and President, Chico's FAS, Inc.
Accelerators Business Objective
“The idea is to take our banking technology platform that we've built and embed it into other ecosystems in a multiproduct way.”
Stephanie Cohen, global co-head of consumer and wealth management at Goldman Sachs
Technology Suppliers Must Adapt to the…
New Business Objectives
New Technology Objectives
New Terms and Conditions
Align to New KPIs for the Digital Enterprise
COVID-19 IMPACT ON IT SPENDING Survey (Survey conducted during 15th October to 30th October period), IDC, October 2020Q: You indicated X is a business division that requires the introduction of new KPIs and metrics. Which are the top 3 KPIs that should be considered?
Automation of end-to-end processes
48%
Employee satisfaction51%
Employees' usage of digital tools and services
49% Sustainability related KPIs55%
Digital risk related KPIs45%
Performance on various steps of the digital customer journey
47%
Volume of services provided via digital channels
54%
ROI from digital services or products
48%
77%
Align to the New Technology Objectives
Time to ValueWe are reducing the time it takes to recognize the business value from our technology investments
68%
Broad ability to address multiple
use cases
Easily integrated with our existing
applications
Implemented quickly
Source: Future Enterprise Resiliency & Spending Survey, IDC, February 2021Q: To what extent do you agree with the following statements about your organization's technology objectives? Showing % reporting agree or strongly agree. n= 738 Worldwide Tech Decision Makers
Prepare for New T&Cs Security, Privacy, Diversity
16%
26%
27%
29%
32%
34%
36%
37%
40%
Carbon neutral requirements
Warranty supplier has IP rights for their offering
Ethical sourcing of materials guarantee
Accessibility requirements
Requirement around how vendor will maintain business continuity
Requirement around how vendor will address a disaster recovery
Diversity and inclusion requirements
Requirement around maintaining privacy of data
Requirement around securing data
Source: COVID-19 IMPACT ON IT SPENDING Survey(Survey conducted during 9th November to 23rd November period), IDC, November 2020
Which of the following are now a standard part of the terms and conditions your organization requires from your IT suppliers in their contracts?
Digital Substitutes
The New Buyer
Experience
EcosystemPartners
Digital Start Ups
Buyer Power
The New Competitive Forces
Threat of New Entrant
Threat of Substitution
Supplier Power CompetitiveRivalry
Your Actions for a Post COVID Marketplace
NEW BUSINESS OBJECTIVES
Align your offerings to support the KPIs of the Future Enterprise.
NEW TECHNOLOGY OBJECTIVES
Align your offerings and ecosystem partners to reduce time to value.
NEW BUYING CRITERIA
Support the T&Cs of the Future Enterprise.
THANK YOU!
We will now be taking a 10 minute break
Up next, IDC’s Research Director, Future of Work, Amy Loomis, Ph.D.
The Future of Work is Hybrid – Now what's the question?
Meredith Whalen
https://www.linkedin.com/company/idc
https://twitter.com/@IDC
AdaptToday’s Directions
March 9th
AccelerateNext Week’s Directions
March 16th
12:00pm – 4:30pm ET
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