IDC predicts bad news for old-school IT as CEOs embrace digital transformation

More and more CEOs are peppering their corporate strategy talks with two words: digital transformation. In fact, market-research firm IDC says “it is becoming increasingly difficult to keep track of all the CEO proclamations related to digital transformation.”

For example, the CEO of Citigroup Inc. recently declared that his company was no longer a bank but a technology company in the financial services industry. He described the three pillars of his digital-flavored business strategy: customer centricity, common processes worldwide, and new digital partnerships.

What does this megatrend mean for the CIO and the corporate IT department? It means you don’t want to be “traditional.”

IDC’s prediction-filled FutureScape report on digital transformation says traditional IT will wane and may cede ground to an incoming chief digital officer (or equivalent).

As more companies adopt a digital transformation strategy, “traditional IT functions become marginalized and the IT function less relevant,” IDC’s report says, but “an opportunity exists for IT to be a true change agent.” That will require IT departments to evolve from “custodian of the infrastructure and project execution to more of a service provider.” IT departments will need to help the company handle all of this new digital activity, procure cloud-based services, and improve employee productivity, the report adds.

For an overview of this megatrend and IDC’s predictions, IDC chief analyst Frank Gens and team have produced a FutureScape webcast to help IT leaders navigate the world of digital transformation.

To access the webcast you’ll need to fill out a short registration form, with no obligation or fee. Webcast viewers will also be able to download the associated PowerPoint slides.