Nearly 90 Percent of Companies are Adopting Transformative Technologies Yet Few Companies Believe They Will Realize the Full Benefits, IHS Markit Says
IHS Markit Digital Orbit assesses transformative technology readiness and impacts
The new “Digital Orbit” from business information provider IHS Markit (Nasdaq: INFO) reveals the readiness and global business impact of the following six transformative technologies: video everywhere, the internet of things (IoT), artificial intelligence (AI), 5G, blockchain and the cloud. A survey done in conjunction with this publication revealed nearly all (87 percent) of companies are adopting at least one transformative technology in their businesses, however just 26 percent of those surveyed believe appropriate business models are in place to to capture full value from these technologies.
“Despite considerable momentum, challenges still remain and the pace of adoption of these technologies will vary considerably,” said Joshua Builta, senior principal analyst, IHS Markit. AI, cloud and virtualization and IoT – bolstered by technical maturity and wide range of established use cases – were the three transformative technologies most ready for adoption by industries today. At the other end of the spectrum were blockchain and 5G, which were assessed as far less ready for widescale adoption at this time.
“Though the hype around blockchain and 5G is considerable, they are at far earlier point in their development cycles and a variety of technical and business hurdles must still be overcome,” Builta said. “However, the readiness scores in ‘Digital Orbit’ are fluid and technologies at the lower end of the scale are most likely to see the greatest upsurge in the immediate future.”
The “Digital Orbit” impact scores indicate that AI will be the most impactful technology over the next three years. Advancements in the technology itself, along with an explosion of analyzable data, is expected to dramatically increase the technology’s transformative effect on a variety of industries”, Builta commented. “Similar to how the impact of cellular technology developed as it evolved from analog to LTE, projected advancements in AI will dramatically increase the technology’s influence in the coming years.”
Cloud and virtualization, IoT, blockchain and 5G will all follow closely behind in the Digital Orbit impact assessment. Video came in at the other end of the spectrum. It was rated as having the least impact, compared to the other technologies examined by IHS Markit.
“Outside of individual and societal changes, all of these transformative technologies will eventually alter industries and businesses forever, by shifting competitive dynamics, enabling new products and services, and rendering previous business models obsolete,” Builta said. “Given what’s at stake, businesses leaders need to understand when and how these technologies will affect their industries, to effectively plan for the future.”
About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2019 IHS Markit Ltd. All rights reserved.