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Digital Enterprise 5.0: Digital Readiness in the Era of AI

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Digital Enterprise Maturity 5.0: Digital Readiness in the era of AI is the fifth addition in our ongoing analysis of global end-user companies' digital transformation journey spread across eleven sectors and seven geographies. Building upon insights from over 500 companies spanning diverse sectors and regions, this report delves into the global enterprises’ digital spend, digital workforce, digital contracts, and Gen AI.

Key Findings

Digital Enterprise 5 Year transformation Journey

  • Key shifts in defining trends: Well-coupled tech and digital spend to Decoupled tech and digital spend. Cloud, social media, and cybersecurity drew top investments Gen AI and AI/ML top tech focus areas: But cybersecurity to become more crucial than ever.
  • Digital spending as a percentage of tech spending has stayed resilient despite delayed decision-making due to macroeconomic factors.
Digital Spending trends in 2023

  • Sector Maturity 2023: High-tech, telecom, media and entertainment, manufacturing, and energy, utilities, and alternatives sectors have improved digital maturity in CY 2023
  • In 2023, 71% of global enterprises spent more than 20% of their technology budget on digital.
  • Digital Talent was in focus due to Gen AI, 2.5x jump seen in 15% category of digital talent as a percentage of total workforce.
  • 89% of enterprises preferred outsourcing their project in 2023 up from 72% in 2022.
Outlook 2024

  • Nearly 36% of the enterprises highlight talent management, customer experience, or innovation acceleration as their top business priority in CY 2024
  • 45% of enterprises are planning to increase digital spend by more than 40% across all categories.
  • More than 80% of enterprises estimated to increase digital talent in 2024.
  • Cybersecurity, AI/ML and Gen AI, networking tech, and automation will draw maximum investments over the next 12 and 18-month timeframe, driven by the need to do more with data.
Recommendation

  • Become an AI first enterprise by investing in innovation led COEs and adopting Gen AI for augmented efficiency and new revenue streams.
  • Bridging the digital skills gap by investing in upskilling and reskilling and implementing continuous learning culture to retain and attract top talents.
  • Service providers to invest in technology, talent and innovation for enriched customer experiences.
  • Industry associations to develop digital readiness tools and fostering a culture of ethical practices

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