In a nutshell, organizations increasingly want to accurately predict the business value of automation opportunities before automation investments are made. That means approval to fund an automation project will have a much greater dependency on automation planning that combines identifying automation opportunities with business value metrics. Once automation projects begin, mirroring metrics will continuously measure the business value delivered as improvements move into production.
Also see: IDC Predictions and the Efficiency Imperative in 2023: How to Drive Value in Uncertain Times | IDC's 2023 outlook: Process mining evolves to business value engineering
While the market has been moving in this direction gradually, IDC is seeing greater interest in technology alignment with business value — especially as organizations prepare for a recession. Seventy-two percent of respondents to a recent IDC worldwide survey expect a recession in 2023. Respondents also anticipate a more conservative approach to IT spending.
Forty percent believe IT budgets will be flat or increase slightly, while 35% believe budgets will be reduced only in specific areas, while 15% expect IT budgets to be reduced across the board.
The past several years have seen automation investments grow in double digits. IDC expects that growth to continue, but at a modestly softer rate. Should the economy slow, priorities will naturally focus more on ways automation can concretely improve financial performance by adding cash to the balance sheet and improving operating profits without degrading customer satisfaction.