Companies Focus on Digital Sovereignty Initiatives: IDC’s Survey 

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Improving the customer experience (CX) directly impacts companies’ bottom line, International Data Corp. (IDC) found in its Future Enterprise Resiliency and Spending (FERS) survey.

More than a third of respondents globally (34 per cent), reported improved profit margins as one of the top five benefits arising from their CX initiatives. Organisations attributed these higher profit margins to increased revenue (27 per cent), cost reductions in personnel (25 per cent), marketing (22 per cent), and new customer acquisition (18 per cent).

The benefits also extended to customers. Companies reporting improved customer experience pointed to their efforts to reduce customer pain points (22 per cent) and friction in customer engagement (19 per cent).

Companies looking to anticipate customer intentions and respond with empathy at scale will need to build a thorough understanding of customer data orchestrated by the right technology solutions, the firm also concluded, noting that technology and knowledge of customer data are critical in how organisations deliver customer experience. In fact, 78 per cent of companies reported that data from and about the customer is critical for CX delivery and 21 per cent indicated that customer data plays an extremely significant role. Additionally, 79 per cent reported that technology is critical in how they deliver CX.

IDC’s FERS also revealed that modern infrastructure is foundational to building enterprise intelligence, which in turn builds greater digital resiliency. Companies that have increased and accelerated investment in technologies that synthesise information will be more digitally resilient in a post-pandemic world. Learning and knowledge sharing are also necessary for building enterprise intelligence and digital resiliency, it found.

According to FERS survey data:

• Business investments in enterprise intelligence continued or accelerated for 76 per cent of survey respondents in response to the COVID-19 pandemic.
• Top factors that helped organisations be resilient in the face of the pandemic were the ability to adapt quickly (33.7 per cent), learn continuously (32.6 per cent), and have cloud infrastructure to support enterprise intelligence (37.5 per cent).
• Enterprise intelligence skills are highest rated among the skills that enterprises are looking to hire in the next six months.

The FERS also found that regulations that enforce territorial data boundaries present obstacles and potentially limit the flexibility of global digital platforms and public cloud services. As the pace and scope of these regulations continue to expand, companies are increasingly looking to digital sovereignty as a way to gain greater self-determination in their efforts to shape their digital transformation efforts. IDC defines digital sovereignty as the capacity for digital self-determination by states, companies, or individuals. It focuses on the control over data, infrastructure, and software.

Also Read: Can Privacy And Data-Driven Marketing Co-Exist?

Future of Trust: Digital Sovereignty

Regulations that enforce territorial data boundaries present obstacles and potentially limit the flexibility of global digital platforms and public cloud services. As the pace and scope of these regulations continue to expand, organisations are increasingly looking to digital sovereignty as a way to gain greater self-determination in their efforts to shape their digital transformation efforts. IDC defines digital sovereignty as the capacity for digital self-determination by states, companies, or individuals. It focuses on the control over data, infrastructure, and software that are relied upon to operate in the digital world.

FERS survey results highlight several key findings:

• 67 per cent respondents agree or strongly agree that digital sovereignty improves their ability to shape digital transformation efforts in a self-determined way.
• 75 per cent of respondents believe that the top regulation or guideline for digital sovereignty is to ensure providers adhere to geographic specific measures to not monetise, sell and/or use their customers’ data without intentional and expressed consent and compensation.
• 48 per cent of respondents indicated that their top challenge is to protect and maintain visibility of data in public cloud providers’ facilities in accordance with regulatory requirements.
• 31 per cent US respondents believe that government involvement will influence investments in digital sovereignty initiatives.