Companies around the world are implementing transformative technology – but most of them don’t really think they’ll realise much benefit.
The new Digital Orbit from business information provider IHS Markit 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 reveals that nearly all (87%) of companies are adopting at least one transformative technology in their businesses – however, just 26% 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,” says 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 says. “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 says.
“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 virtualisation, 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 says. “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.”