20% of Indonesia’s gov’t agencies will use IoT by 2020, says IDC

By 2019, 20 percent of local and regional governments in Indonesia will use Internet of Things (IoT) to turn infrastructure like roads, street lights, and traffic signals into assets instead of liabilities, according to International Data Corporation (IDC).

This year, however, it said 90 percent of Indonesian cities will fail to take full advantage of smart city data and digital assets due to a lack of process, project management, and change management skills.

“In Indonesia, digital transformation is still not adequately represented within the enterprise, and this disparity in leadership will lead towards a delayed response towards market changes that will adversely impact business. Timing is critical, and archaic thinking of riding out trying economic times is no longer relevant and should be addressed with process-led innovation,” said Sudev Bangah, Country Manager of IDC Indonesia.

These insights are among the top technology predictions announced recently by IDC Indonesia at the IDC FutureScape Media Briefing.

The research firm highlighted that digital transformation will attain macroeconomic scale over the next two to three years in the country, changing the way enterprises operate and reshaping the global economy. IDC calls this as the dawn of the “DX Economy.”

“As digital transformation reaches macroeconomic levels, a DX economy will emerge and will become the core of what industry leaders do and operate,” said Mevira Munindra, Research Manager, Consulting of IDC Indonesia. “Essentially, to succeed, Indonesian enterprises must begin to think of the relevancy of their business in 10 years, and how they should react in the face of disruptive forces.”

In the enterprise sector, IDC predictions are as follows:

1. By 2019, 50 percent of IT organizations will create new customer-facing and ecosystem-facing services to meet the business DX needs.

2. By 2018, lack of vision, credibility, or ability to influence will keep 80% of IT executives from attaining leadership roles in enterprise DX.

3. By 2020, Indonesian firms will use open innovation to allocate expertise to 15% of new projects, aiming to increase their new product introduction success rates by over 50%.

4. By 2020, nearly 20 percent of operational processes will be self-healing and self-learning — minimizing the need for human intervention or adjustments.

5. By 2018, Online Brand Ambassadors and Social Media Influencers Will Have More Marketing Power than Traditional Digital Advertising, Yet This Will Subside Through 2019 and Beyond.

6. By 2019, Digital Transformation Investments Will Double, Drawing Funds Away from Store Capital and Profoundly Changing the Retail Industry.

7. By 2019, only 30 percent of manufacturers investing in digital transformation will be able to maximize the outcome; the rest are held back by outdated business models and technology.

8. By 2019, cloud adoption will reduce infrastructure spend by 25 percent among top-tier banks.