Gartner has published its top industry predictions for IT organisations and users for 2014 and beyond.
Gartner's predictions feature strategic planning assumptions that CIOs, senior business executives and IT leaders should factor into their enterprise planning and strategy-setting initiatives, said the analyst house.
"Transformation remains a critically important phenomenon across all industries. Many industries will face intense challenges in 2014 and beyond, and will have no choice but to radically change their established business models," said Gartner analyst Kimberly Harris-Ferrante.
"Last year saw many industry decision-makers addressing the convergence of social, mobile, cloud and big data. Today, by contrast, leaders are significantly shifting their business models and processes," said Harris-Ferrante.
She said this trend is driven in part by the challenges of consumer empowerment and market commoditisation, "which in many ways are greater than in the past, and are particularly difficult for traditional enterprises to address".
Gartner said leaders and CIOs must carefully assess their industry-specific strategic requirements, including the demands of consumers and business partners, to "map out transformation plans based on new technology availability, consumer demographic/behavioural changes and market conditions".
Gartner top industry predictions:
• By 2015, 80 percent of life science organisations will be "crushed" by elements of big data, exposing poor ROI on IT investments
• By year-end 2015, inadequate ROI will drive insurers to abandon 40 percent of their current customer-facing mobile apps
• By 2016, poor return on equity will drive more than 60 percent of banks worldwide to process the majority of their transactions in the cloud
• By 2016, 60 percent of US health insurers will know the procedure price and provider quality rating of shoppable medical services in advance
• By 2017, more than 60 percent of government organisations with a CIO and a chief digital officer will eliminate one of these roles
• By 2017, 40 percent of utilities with smart metering solutions will use cloud-based big data analytics to address asset-, commodity-, customer- or revenue-related needs
• By 2017, 15 percent of consumers will respond to context-aware offers based on their individual demographics and shopper profiles
• By year-end 2017, at least seven of the world's top 10 multi-channel retailers will use 3D printing technologies to generate custom stock orders
• By 2018, 20 percent of the top 100 manufacturers' revenue will come from innovations that are the result of new cross-industry value experiences
• By 2018, 3D printing will result in the loss of at least $100 billion per year in intellectual property globally
The rise of the Chief Digital Officer
Regarding the threat to CIO roles in the public sector, Gartner said: "The accelerating digitisation of government, driven in part by an expanding universe of government data that is open and accessible, is redefining baseline IT competencies and leadership skills in the public sector."
It added: "The rush to leverage digital assets has led to the proliferation of IT roles and distributed responsibilities. Government agencies are hiring new, senior-level ‘chief’-designated positions to supplement or replace traditional IT executive roles."