IDC

The process that tech leaders typically follow to measure digital transformation is antiquated and must change. The reason? They tend to concentrate on IT performance metrics that aren’t tied to business outcomes. By falling into the trap of focusing on IT-centric performance metrics—such as uptime, system availability, and IT spending — without linking them to broader business outcomes like revenue growth, customer experience, and innovation, tech leaders struggle to justify investments, CIOs lack visibility into true impact, and digital transformation stagnates. To break free from this outdated approach, IT leaders must rethink how they define and measure the outcomes achieved through digital transformation.  Designing, planning, initiating, funding, implementing, and continuously driving an organization’s digital transformation are essential tasks, but tech leaders must also continue the momentum for collaboration with technical and business stakeholders. This is done by measuring outcomes to see progress. The CIO plays a critical role here; they must facilitate and lead digital transformation with KPIs that show progress and outcomes. Here is what we recommend. Step 1: Shift Your Thinking and Your Team’s Culture from Measuring IT Metrics to Business-Aligned KPIs Measuring infrastructure uptime, number of deployments, or IT costs in isolation is an obsolete approach as these details will not show the necessary alignment of tech investments with the changes necessary to transform the organization into a digital leadership position. Different approaches to change thinking are to align technology investments with defined digital initiatives that are intended to improve business value such as revenue impact, operational efficiency, and customer satisfaction, just to mention a few. How do you do that? First, engage your team to define business outcomes. In other words, identify what IT success looks like to business stakeholders. For example, for IT operations, it could be improvements in customer satisfaction, measured by Net Promoter Score and digital experience data. For application design and development, it could be faster time to market for new digital products, measured by speed of product innovation cycles. And for project and portfolio management, it could be the revenue or cost savings directly attributable to digital initiatives. Why this matters: Traditional IT metrics measure efficiency, but they don’t tell the full story of digital transformation success. Instead, CIOs and tech buyers must demonstrate how technology investments drive real business impact, and that requires a cultural shift to let go of old approaches that measure IT without connection to the business. Step 2: Build a Digital Transformation Index (DXI) A digital transformation index (DXI) is a set of key objectives with associated key performance indicators (KPIs) used to evaluate and measure an organization’s progress on the different strategic objectives and goals defined within the digital transformation strategy. The following are key strategic objectives for making progress in your digital transformation but should be adjusted to your specific digital business strategy.    Development and guidance of the organization through digital strategy and leadership: This objective is specifically focused on ensuring that there is a digital vision and a strategic road map, as well as commitment and support from executive leadership to drive digital initiatives that are part of the organization’s vision and road map. You’d likely want to set measures around certain milestones achieved as well as key ongoing initiatives. Changes in business models to achieve business outcomes: When selecting and creating business model objectives, start thinking about how your organization with its people, processes, and technology diversifies and grows revenue streams, grows shareholder value, manages costs, or improves profitability. Transformation progress to leverage strategic technology assets toward superior customer value: This objective should include measurements in terms of transformations on technological aspects defining value for customers in your respective market. Example metrics could be investments into core and emerging technology; architecture and data; or progress in the adoption of AI, cloud, automation, and security strategies, all for delivering superior customer value. Improvements around organization, culture, and innovation: This objective includes the strategic approach to optimize or reengineer existing processes, for example leveraging   DevSecOps or Agile. Additional pursuits are agility improvements of the overall workforce; upskilling initiatives to improve digital skills development; and collaboration and cross-functional teamwork in pursuing new digital productions, solutions, or services to solve problems of your customers. Operational excellence to scale and accelerate innovation: Operational excellence includes the ability to minimize overhead, reduce costs, and introduce automation optimizations to shift funding toward innovation. The measures could be technical debt removal, intelligent automation while managing cost, security, and agility, all balanced with new technology adoptions accelerating digital innovations.    Why this matters: Organizations that fail to track holistic digital transformation progress risk making decisions in silos. A DXI with key measurement objectives provides clarity, accountability, and a connected approach to measuring digital transformation success. Some best practices are to track only the most meaningful transformation metrics that align with business goals; set baseline measurements and monitor improvements over time; and align IT, finance, and business units to ensure shared ownership of KPIs.   Step 3: Make KPIs Actionable for Meaningful Progress One of the most common mistakes CIOs make is tracking digital transformation progress without taking corrective action. Collecting data is only half of the journey — what matters is using it to drive real-time decision-making. Leveraging real-time dashboards that provide visibility across teams, enabling data-driven course corrections, are a good first step. Other important tasks are to make sure there is KPI ownership by involving both the business and IT leaders who can drive accountability and alignment, and to safeguard that there are structured review cycles to assess performance, adjust strategies, and ensure digital initiatives stay on track. Why this matters: Metrics should not exist in a vacuum. CIOs must embed digital transformation measurements into business decision-making, ensuring that KPIs drive agility, adaptability, and impact. Step 4: Future-Proof Your Measurement Strategy Digital transformation isn’t static, and, therefore, its objectives must evolve as technology and business need change. It is important to regularly reassess objectives and the associated KPIs to ensure they remain relevant as new technologies, good

The annual Mobile World Congress trade show, as the name suggests, is normally a telco and handset-driven event, and this year’s event in Barcelona last week was no exception. Even though vendors that we associate with PCs like Intel, AMD, and Dell had on-site booths as well, they were more focused on telco and data center opportunities rather than PCs. That doesn’t mean that there weren’t significant PC market developments though. Indeed, last year we saw Intel launching the vPro version of its Meteor Lake processors at MWC, and this year we saw vPro for Arrow Lake being unveiled under the Intel Core Ultra (Series 2) name. At first glance this might seem just like an uneventful annual cadence, but we think the industry is underappreciating how significant this development is for moving the PC industry toward on-device AI. The reality is that many commercial PCs leverage Intel vPro, as well as the AMD equivalent more recently. This is not just because of the product-level features catering to IT departments around manageability and security, but also because PC OEMs like HP, Dell, and Lenovo create commercial PC product lines based on vPro. More than half of the total PC market is driven by the commercial sector rather than consumers, so Intel’s release of the vPro version of its latest processor is key to adoption as a whole. And hey, it has an NPU for on-device AI workloads. Granted, what businesses will do with those NPUs is still up for debate. Use cases so far have been limited, and delays and confusion around Microsoft Copilot+ PC features haven’t helped either. (Frankly, we think offloading system tray tasks to the NPU for the sake of power efficiency and longer battery life is not talked about enough, but to be honest, it is not the sexiest topic.) Eventually the use cases will come, as long as the other big hurdle of security is assured. In the meantime, NPUs are shipping for software developers to take advantage of, and the installed base of AI PCs is growing. Chicken, meet the egg. Software, by the way, is where Intel has an advantage. This is in two forms. First, it is in terms of how much Intel has embraced and invested in developers to take advantage of its silicon, with its AI PC Acceleration Program helping ISVs to leverage not just the NPU, but also the GPU and CPU. More significant though is the assurance of existing applications being compatible with its silicon. As much as Qualcomm and Microsoft deserve big credit for getting a significant number of applications natively deployed on ARM (while also offering a well-praised emulator as a workaround), corporate images have deeper system-level software like anti-virus, VPN, remote desktop, backup, and possibly accessory drivers that may not all be ported over yet. And this inertia keeps Intel moving among commercial buyers. The point either way is that NPUs are shipping, even if these Arrow Lake systems feature a less powerful 13 TOPS NPU compared to competing >40 TOPS parts including not just Intel’s own Lunar Lake platform, but also those from AMD and Qualcomm, the latter of which incidentally can reach much lower price points than Intel. Intel’s new vPro Fleet Services are also encouraging. It is an Intel-hosted SaaS that makes it easier for IT departments without on-premise servers to activate vPro’s Active Management Technology (AMT), which recently garnered huge success stories for organizations who got back on their feet quickly during last year’s Crowdstrike “Blue Friday” incident due to AMT usage. Intel separately launched its Assured Supply Chain program, which is very timely given today’s uncertain geopolitical and tariff-clouded environment. Speaking of Qualcomm, there were no new Snapdragon X announcements at MWC, but their booth showcased a Lunar Lake-based Surface Laptop for Business alongside one using its own Snapdragon X Elite to illustrate performance differences when unplugged on battery power. It was a message that we’d seen from them already but was now demonstrated live with a fresh Lunar Lake-based Surface Laptop that only just started shipping recently. Qualcomm’s strengths on battery are indeed a competitive advantage that deserves more attention. Finally, one can’t do justice to talking about PCs at MWC without mentioning Lenovo. Its presence at the show catered to the telco segment via its infrastructure business group as well as its Motorola lineage, but a significant portion of its booth was dedicated to its PCs too. That included not just refreshed Think and Yoga product lines, but also its wide range of concepts, including an outward-folding notebook, secondary-screen attachments, solar-powered backpanels, and 3D screens. Even if they were just concepts, Lenovo got the message out about its ability to innovate. One item from Lenovo that didn’t seem to get much media coverage but that we were particularly fascinated by was Lenovo’s use of discrete NPUs in peripherals like monitors. In one concept that Lenovo showed, it not only allowed the (motorized) monitor to follow its user’s movements when needed, but more importantly, allowed a non-NPU notebook to use the dNPU in the monitor. It was just a proof of concept, so the ease of developers to access that has yet to be proven. But that NPU installed base nonetheless stands to increase as the industry thinks more in this direction. source

At the core of any effective sales and marketing effort is a deep understanding of your target audience. Knowing who they are is important but understanding what their tech stack is comprised of can be a game-changer. That’s because, let’s face it, no one wants yet another point solution, and the argument for ripping out and replacing existing technology is an uphill climb for those making the case. No matter what your angle of sell is, you should know which technologies your prospects are using before even making the first call.  This is why we’re thrilled to announce IDC Velocity for Sales’ powerful new technographics feature, providing unprecedented insight into the tech stacks of your target accounts.  This new capability unlocks a whole new level of targeting precision on top of the already robust IDC Velocity for Sales platform:  1. From Conjecture to Confidence (with your Sales Outreach) This release introduces a new data set into IDC Velocity for Sales, allowing you to see the specific web technologies being used by your target accounts. This filtered view allows you to:  Personalize your outreach: Tailor your messaging and sales strategy to resonate with the specific technologies your prospects are already using. For example, if you know a target account uses a particular CRM or a website analytics solution, you can highlight integrations with your solution. Let’s use Salesforce as another example – if Salesforce identifies that a prospect is using an outdated CRM system, it could highlight the benefits of upgrading to Salesforce’s cloud-based CRM solution. This targeted approach would not only increase the relevance of their messaging but also improve their conversion rate.  Prioritize your accounts: Focus your efforts on accounts that are a perfect fit for your technology. See which prospects are using complementary solutions or those that might be looking for an upgrade. Gain a competitive edge: Leverage your insight advantage to see which prospects are using competitive vendors, and tailor your approach accordingly. 2. Searching for Accounts Based on the Technologies They Use Tech stack compatibility is the love language that drives sales. When prospects agree to a sales conversation, a predominant concern they will have is your ability to work with their existing technologies. This means you need to focus your efforts on accounts that you can work with as they are.  Now you can instantly identify all accounts in a specific market of interest that use a particular web technology using IDC Velocity for Sales. You can:  Build highly targeted lists: Create tailored account-lists for marketing campaigns filtered by a specific vendor.  Identify ideal customer profiles (ICPs): Refine your ICPs based on real-world technology usage data.  Diversify your pipeline: Identify in-market accounts in previously untapped or adjacent markets by filtering based on tech spend potential and specific technologies.  3. Explore Popular Web Technologies Within a Category Let’s explore a different angle. Let’s say you are market planning and have specific market segments you are looking to better understand. IDC Velocity for Sales allows you to explore the most popular web technologies within any category, giving you valuable insights into:  Market trends: Identify emerging technologies and understand which solutions are gaining traction.  Competitive analysis: See which technologies your competitors’ customers are using, giving you a better understanding of their target market.  Product development: Inform your product roadmap by understanding the technologies your target audience relies on.  The Power of Technographics at Your Fingertips Understanding the vendors your prospects are using offers a significant advantage, enabling you to make smarter, data-driven decisions during the market planning stage.  Contact us today to unlock the power of technographic data and achieve your revenue goals! source

The Mobile World Congress (MWC) 2025 in Barcelona has once again served as a barometer for the future direction of the mobile industry. This year’s event, themed “Converge. Connect. Create.”, revealed some technological shifts that will define market dynamics in the coming years. Two dominant trends emerged in the devices space: rapid integration of AI across devices and the evolution of form factors. Artificial Intelligence: The Battle for Intelligence Continues The biggest takeaway from MWC 2025 was the industry-wide push toward AI, particularly on-device AI. Key players showcased their strategies to integrate AI more deeply into their ecosystems: Honor’s New Corporate Strategy: Honor’s announcement of a $10 billion investment over the next five years to develop AI for its devices indicates a strategic move towards establishing a global AI device ecosystem, encompassing smartphones, PCs, tablets, and wearables. This substantial commitment indicates a broader industry trend of integrating AI to enhance device functionality and user experience.​ OPPO: At the OPPO AI Tech Summit, OPPO reinforced its commitment to AI across productivity, creativity, and imaging. They introduced features like AI Call Translator for real-time call interpretation and AI VoiceScribe for multi-use voice summarization. OPPO also announced deeper collaboration with Google, integrating Google Gemini across native apps like Notes, Calendar and Clock for improved AI functionality. To bolster user privacy, OPPO is implementing Private Computing Cloud with Confidential Computing from Google Cloud for secure data protection in AI features. They also highlighted a partnership with MediaTek to optimize chips for high-efficiency, real-time AI processing, ensuring powerful performance without excessive battery drain. OPPO aims to bring generative AI features to 100 million users by the end of 2025 (doubling its 2024 target of 50 million) and plans to deliver an average of one new AI update per month. Samsung: Samsung’s emphasis on AI’s role in personalizing user interactions, with 75% of Galaxy device owners utilizing AI features daily, highlights the growing consumer acceptance and demand for intelligent functionalities. Samsung also launched two new devices, the Galaxy A36 and Galaxy A56, aiming to democratize AI by bringing AI features to affordable price points. Deutsche Telekom AI Phone: In partnership with Perplexity AI, Deutsche Telekom unveiled an AI-centric phone that prioritizes AI interactions over traditional app usage. This “AI Phone” features the Perplexity AI assistant, accessible via voice or a double-tap of the power button, which can perform tasks like real-time translation, booking services, and text summarization. Newnal AI Phone: South Korean startup Newnal introduced a novel AI phone concept, featuring a unique operating system that creates a personalized AI assistant by analyzing user data like social media activity, medical records, and financial information. This personalized AI aims to streamline tasks such as shopping and email composition, offering a highly customized user experience. The phone runs on a hybrid OS combining Newnal’s system with Android, with a planned global launch on May 1st at a price of $375. Arm & Stability AI: Arm partnered with Stability AI to develop Stable Audio Open directly on smartphones without an internet connection. They demonstrated a 30x improvement in on-device generative AI for audio, proving that local AI processing is no longer an experimental feature but a necessity. This will allow users to create a professional sound with just a smartphone. This integration enables faster response times for AI-powered features like image recognition and natural language processing, enhancing user experience. While last year the focus was on the camera and content generation, this year we saw AI being expanded to new areas. Qualcomm: Showcased AI-powered processors designed to improve user experiences without relying on cloud connectivity. Qualcomm made significant strides in 5G and AI with the launch of its Dragonwing FWA Gen 4 Elite Platform, featuring on-device AI-enhanced traffic classification, 40 TOPS Edge AI integration and delivering ultra-fast broadband speeds up to 12.5 Gbps. It also announced the Snapdragon X85 modem-RF, designed for 5G and future smartphones. It achieves record-breaking download speeds of 12.5 Gbps and upload speeds of 3.7 Gbps. Mediatek: The announcements focused heavily on AI, particularly on how it can enhance the smartphone experience. Their Dimensity 9400 chip utilizes AI for improved photography and videography features, including AI-powered portrait mode, low-light photography enhancements, and AI-enhanced zoom capabilities. They also showcased generative AI applications for smartphones, like creating moving portraits from still images. Smartphones: Evolution in Design and Functionality The smartphone announcements at MWC 2025 indicate a strategic focus on design innovation and enhanced functionalities. Xiaomi‘s introduction of the 15 Ultra, featuring a 200MP periscope telephoto lens with 4.3x optical zoom, demonstrates the industry’s commitment to advancing mobile photography capabilities. This development reflects a broader strategy to differentiate products through superior camera technology, catering to the growing consumer interest in high-quality imaging.​ Nothing‘s launch of the Phone (3a) and Phone (3a) Pro, maintaining the brand’s signature transparent design, signifies an effort to blend aesthetic uniqueness with affordability. This approach targets a segment of consumers seeking distinctive yet cost-effective devices, suggesting a strategic move to capture diverse market demographics.​ Tecno’s Spark Slim Phone key feature is a thermochromic pigment that allows users to change the phone’s color, offering a unique and customizable design. Personal Computers: Innovations in Form Factor and Sustainability Lenovo’s unveiling of the ThinkBook Flip with a rollable OLED display expanding from 13 to 18.1 inches represents a strategic innovation in adaptable form factors, targeting professionals requiring versatile computing solutions. Such developments indicate a market shift towards flexible and multifunctional devices.​ The introduction of the Yoga Solar PC, featuring a solar-powered charging system, reflects a strategic emphasis on sustainability and energy efficiency. This move aligns with the growing consumer and regulatory focus on environmental responsibility, positioning companies that prioritize eco-friendly innovations favorably in the market. Wearables: AI Integration and Health Monitoring The wearable technology showcased at MWC 2025 highlights a focus on AI and health monitoring features. Honor’s Watch 5 Ultra, offering active noise cancellation and AI real-time translation, exemplifies the trend towards multifunctional wearables that enhance user convenience and connectivity. Wearable devices need to expand

For marketers driving adoption of AI-enabled products, differentiation is no longer optional. it’s essential. To capture attention, build trust, and accelerate buyer decisions, you need a strategy that aligns sales activation, brand positioning, and customer engagement—at scale. IDC’s latest research shows that midmarket vendors who adopt AI-driven strategies aligned with three key pillars—differentiation, active buyer engagement, and fast sales activation—are outpacing their competitors. Here’s how leading companies are doing it. Strategy 1: From Static Messaging to Real-Time Personalization B2B buying is evolving fast, mirroring the seamless, predictive experiences of B2C. By 2028, 70% of B2B buyers in the U.S. will rely on GenAI to discover, evaluate, and select vendors (IDC, 2024). The challenge? If you’re not leveraging AI to personalize in real-time, you’re already behind. Winning marketers aren’t just gathering customer data—they’re activating it instantly. IDC research confirms that vendors with AI-powered Customer Data Infrastructure (CDI) see higher engagement rates, as they can dynamically adapt messaging based on buyer behavior (IDC, 2024). This shift from broad personalization to real-time precision is what will separate leaders from laggards. Over the next few years, 62% of traditional B2B lead and demand generation efforts will transition to automated sensing, personalized engagement, and AI-powered content creation. AI will bridge the gap between digital and physical engagement, allowing seamless, highly relevant interactions. By 2028, AI-powered agents will redefine luxury and high-value for both B2C and B2B interactions. From frictionless service to predictive personalization, these agents will enhance customer experiences, allowing brands to scale premium engagement, democratizing “white-glove” experiences. Winning Move: Build an AI-powered customer data infrastructure (CDI) that unifies insights across platforms, enabling tailored engagement before competitors reach your buyers (IDC, 2024). By leveraging AI, vendors can deliver deeply personal experiences that build confidence rather than hesitation. The key is transparency: showing customers how AI enhances rather than replaces human connection, along with enabling clean, freely shared data collection from consumers. This delicate balance between automation and authenticity defines the next era of consumer — and customer — engagement. Strategy 2: Aligning AI with Buyer Expectations—Not Just Marketing Tactics Marketers often focus on how AI enhances their campaigns, but what truly matters is how AI changes buyer behavior. The brands growing fastest today are those that position their AI-enabled products as essential to their customers’ success. For example, 62% of B2B demand generation will be AI-powered by 2027, automating how buyers are reached and nurtured (IDC, 2024). But automation alone isn’t enough—buyers need proof. Vendors who provide benchmarks, case studies, and independent validation will build credibility faster than those relying on broad claims. Additionally, by 2029, companies will spend up to five times more on optimizing AI-powered large language models (LLMs) than traditional search optimization. This shift will redefine how brands surface in AI-driven recommendations and product searches, making LLM optimization a top priority for marketers. Winning Move: Lead with trusted results, not just AI features. Show how your product delivers real, measurable outcomes in an AI-driven world. Strategy 3: AI as a Sales Activator—Not a Sales Replacement AI is transforming the buying journey, but sales teams remain critical in closing deals. However, the role of sales is shifting. With AI accelerating the discovery and consideration phases, traditional outreach won’t be enough. Reality Check: If your AI-powered product isn’t integrated into an AI-optimized sales strategy, you’re losing deals. IDC research highlights that high-growth companies are leveraging AI to identify buyer intent, surface in AI-driven searches, and automate engagement triggers that put their sales teams in the right conversations at the right time (IDC, 2024). As AI increasingly shapes the discovery and consideration process, sales reps might worry about being overshadowed or losing relevance. Rather than fearing AI, sales leaders can empower their teams by embracing AI and learning how to leverage it effectively. Winning Move: Train your sales teams to use AI insights, ensuring they step in when and where they add the most value—at the moments AI alone can’t close the deal. AI is reshaping how to reach decision-makers, personalize engagement, and drive growth for AI-enabled products. Marketers who act now will lead in a future where AI is the very foundation for a competitive advantage. IDC’s bundled solutions are designed to help marketers sell value, not just products. Our solutions focus on: Differentiating Your Strategy – Research-backed insights to set your brand apart. Reaching Active Buyers – Engaging the right audience with compelling content. Activating Sales Fast – Providing ready-to-use tools for quicker conversions. The combined power of IDC’s award-winning intelligence experts and proprietary data has facilitated customer growth for over 60 years. Let’s talk about how you can accelerate adoption, build trust, and win buyers in the AI era. Reach out today. source

As we navigate the complexities of the global economy, the most recent tariffs imposed by the US on China have introduced new variables into our forecasts. The current IDC forecast of 9% growth includes the impact of the additional 10% tariffs levied last month. While the consensus was that these initial tariffs would have a limited net impact on overall spending, they have caused competitive disruption and created additional risks for consumer spending. We’ve already seen signs of weakness in consumer spending, which increases the risk of a downturn lasting into CYQ2. We will be factoring the tariffs announced today into our forecast, if they stay in place, with the potential impact being more significant than last month’s tariff actions. The downstream impact is lower GDP forecasts by the end of March for the U.S economy. The duration of these tariffs, along with other factors like currency and interest rates, will play a crucial role in the impact on this year. Some economic indicators for Q1, especially consumer confidence, are already starting to deteriorate. The obvious downside risk of these tariff actions is that a prolonged trade war could add to existing pressure on consumer spending and trigger a U.S. recession, as consumer goods are heavily impacted by the most recent tariffs.  Recently, IDC published a new downside scenario illustrating the potential impact on IT spending, with most of the impact on devices and IT services, while infrastructure and software remain more resilient. IDC’s baseline IT forecast is currently at 9% IT spending growth in 2025, with a prolonged trade war downside scenario of 4% growth. Within this range, the highest likelihood is that PC and smartphone demand would see the quickest declines, with early estimated potentially bringing the baseline down to 6-8%, followed by impacts on services and other segments if the trade war continues. An unlikely downside scenario exists where a recession triggers a rapid reduction in AI interest, negatively impacting server and storage server spending. However, the risk of this scenario remains low as all indications are that hyperscale suppliers will continue to double down on spending plans to support AI workload. To that point, we are expecting about 20% revenue growth in server and storage spending this year, on the heels of the 50+% growth that we saw last year. On the other hand, there is an upside scenario where IT spending growth could reach double digits again in 2025, driven by new trade agreements, falling inflation, and deregulation. However, this scenario is currently less likely due to the current policy direction. Overall, we see far more downside pressure on our IT forecast because of the tariffs, but it might take until the middle of 2025 to fully play out. Even with the reality of tariffs, many businesses are holding off on making major buying adjustments. Given this uncertainty, our forecast range is unusually large and reflects policy uncertainty and will likely be biased to the downside unless policies change in the near term. Conclusion The impact of tariffs on IT spending is a rapidly evolving issue. While our baseline forecast remains at 9% growth for 2025, the potential downside risks from prolonged trade tensions and economic uncertainties could significantly alter this outlook. We believe businesses are currently in a wait-and-see mode, and the full effects of the tariffs may take a few months to manifest. As this fluid situation evolves it is crucial for companies to maintain agility and hedge against the impact that will come from continued varied scenarios. Customers need to be proactive and adaptable in navigating this uncertain landscape. As stated earlier, the current IDC forecast of 9% growth includes the impact of the additional 10% tariffs which the US levied on China last month. At that time, we forecast that those initial tariffs would have a limited net impact on overall spending. These actions will cause competitive disruption in the supplier landscape (not all vendors are impacted equally), and this turn of events has created some additional downside risk for consumer spending going forward and some “buy forward” activity in anticipation of tariffs coming into effect, which creates more of an overhang for the remainder of the year. We believe today’s tariff announcement, if they stay in place, increases the risk of a downturn in consumer spending lasting into Q2, which would increase the likelihood of a downward revision to IDC’s IT forecast to the midpoint of our 4%-9% growth range for total IT in 2025. Crawford Del Prete and Stephen Minton contributed to this blog. source

CEOs are focused on five critical areas that will define business success in the coming years as organizations navigate economic uncertainty, technological disruption, and shifting regulatory landscapes. From automation and AI-driven transformation to ESG and customer experience, today’s leaders are making strategic investments to ensure long-term resilience and growth. Let’s investigate what is top of mind for CEOs as they prepare for the future, and which steps to take. AI-Driven Workplace Transformation & Automation Automation is no longer just about efficiency, it’s about enabling data-driven, decision-making at scale. CEOs are prioritizing intelligent automation strategies that streamline operations, reduce costs, and unlock new revenue opportunities. Organizations are leveraging automation to improve forecasting, enhance productivity, and innovation. Ensuring employees are equipped to work along technologies is a key challenge in integrating automation into existing workflows. Ethical AI implementation, addressing bias in automated decisions, and maintaining transparency must be considered in AI-driven operations. Those who invest in automation with a clear strategy will gain a competitive advantage, while those who resist will face operational inefficiencies and stagnation. A top concern for CEOs as AI rapidly reshapes business function is workforce transformation. IDC predicts that by 2026, 20% of knowledge workers will take charge of their work transformation, using AI tools to automate workflows. Organizations will need to balance the benefits of empowered, efficient workers against potential risks related to AI governance and process consistency. Companies must also consider responsible and ethical AI implementation. Those who invest in automation with a clear strategy will gain a competitive advantage, while those who resist will face operational inefficiencies and stagnation. Regulatory Flux: Navigating Compliance Challenges in a Shifting Policy Landscape Regulatory uncertainty continues to be a significant challenge, particularly as AI, data privacy, and ESG policies evolve. CEOs must stay ahead of emerging regulations, ensuring compliance while maintaining operational agility. Businesses are investing in regulatory intelligence and governance frameworks that allow them to adopt new policies quickly. Those that proactively integrate compliance into their strategic planning will be better positioned to navigate risk and capitalize on emerging opportunities. In the AI space, evolving laws around data privacy, bias mitigation, and AI accountability are prompting organizations to develop strong internal compliance programs. Additionally, ESG regulations are tightening, requiring companies to provide greater transparency in their sustainability practices. Organizations that fail to adapt risk significant fines, reputational damage, and operational disruptions. CEOs can influence industry regulations while ensuring their businesses remain competitive by prioritizing proactive compliance strategies and engaging with policymakers early. Customer Experience Squared: Rising Expectations for Digital Services Consumers and citizens alike expect seamless, personalized digital experiences—across all industries. CEOs recognize that customer experience (CX) is no longer just a differentiator; it’s a necessity. AI-driven personalization, real-time engagement, and frictionless digital interactions are becoming the standard. Organizations that prioritize CX will see stronger customer loyalty, while those that fail to meet expectations risk losing relevance in an increasingly digital-first world. To anticipate customer needs and deliver personalized solutions in real-time, companies must invest in AI-powered chatbots, predictive analytics, and omnichannel experiences. Furthermore, digital trust remains a key factor—organizations must ensure that their data collection practices are ethical and that customers feel confident in their interactions. By embedding AI and automation into CX strategies while maintaining a human touch, businesses can cultivate lasting customer relationships and drive long-term success. Expanding Digital Security Frontiers: Fortification Against Multiplying Threats As organizations accelerate digital transformation, cybersecurity risks continue to grow in complexity and scale. CEOs are prioritizing robust security frameworks that can withstand sophisticated cyber threats, ensure regulatory compliance, and protect sensitive data. The increasing adoption of AI, cloud computing, and IoT technologies has expanded the attack surface, making proactive security strategies more critical than ever. Organizations are implementing zero-trust architectures, AI-powered threat detection, and enhanced identity management systems to safeguard against cyberattacks. Cyber resilience is no longer just an IT issue—it is a core business imperative. CEOs are working closely with security leaders to embed cybersecurity into business strategies, ensuring that security investments align with operational priorities. Additionally, cyber risks extend beyond the enterprise, with supply chain vulnerabilities and third-party security breaches posing significant challenges. Companies must take a holistic approach, integrating security into every stage of digital initiatives and fostering a culture of cyber awareness across all levels of the organization. Future-Proofing Against Environmental Risks: ESG Operationalization and Risk Management Sustainability is no longer a corporate social responsibility initiative—it’s a business imperative. IDC foresees that by 2027, 75% of customers will expect CO2 emissions data on everything from build, operate and disposition of their IT assets to assist with their overall corporate sustainable goals. Therefore, CEOs are now embedding environmental, social, and governance (ESG) principles into their operations to mitigate risks, meet stakeholder expectations, and drive long-term value. As ESG regulations tighten and investor scrutiny increases, companies that align sustainability with business strategy will be better positioned for future success. However, operationalizing ESG requires more than just meeting compliance standards; it involves integrating sustainability into business models, product development, and supply chain operations. Businesses that effectively integrate ESG into their corporate strategies will mitigate risks, build stronger relationships with investors, customers, and employees while sustaining competitive advantages. Conclusion CEOs are facing a complex landscape where technology, regulation, and shifting consumer expectations intersect. Those who embrace automation, invest in AI-driven workforce transformation, navigate regulatory change proactively, prioritize customer experience, and operationalize ESG strategies will mitigate risk and drive sustainable growth. Organizations that take a strategic, forward-looking approach to these pressing challenges will thrive in the future. Leaders who prioritize agility, innovation, and ethical business practices will shape the next generation of successful enterprises. By staying informed and adapting to change, CEOs can ensure their companies remain resilient and competitive in an evolving global economy. Interested in learning more about who is leading the AI revolution? Our new eBook explores the C-suite’s strategic priorities for AI adoption and offers key insights on implementation challenges, opportunities for innovation, and actionable steps to ensure AI delivers tangible business outcomes. source