IT Distribution Channels Solid in North America...Less Than Half of Digital Initiatives Pan Out...Companies that Personalize to Win in the AI Economy
IT Distribution Revenues Remain Stable with Software and Security Led Growth, According to the IDC North America Distribution Tracker
Distributor revenues inched up from the previous quarter to $20.2 B in the third quarter of 2024 (3Q24), according to the 国际数据公司 North America Distribution Tracker (NADT). Year-over-year growth was down a fraction of a percent with continued growth in Software, Personal Computing, and Security, but offset by declines in Network Infrastructure, Services, and AV.
“IT distributors remain a critical component of a successful strategy,” said Ruth Flynn, research vice president, IDC Tracker & Data Products. “The flexibility and product coverage of IT distributors helped balance factors like interest rates and political uncertainty with post-pandemic recovery in a challenging Q3. An example is PC growth of 2% through distribution where overall PC shipments were down 6% in preliminary Q3 reporting.”
Gartner Survey Reveals Only 48% of Digital Initiatives Are Successful
On average, only 48% of digital initiatives meet or exceed business outcome targets, according to Gartner, Inc.’s annual global survey of more than 3,100 CIOs and technology executives, and more than 1,100 executive leaders outside of IT (CxOs). A cohort of CIOs and CxOs, known as the “Digital Vanguard,” has the highest achievement rate, where 71% of their digital initiatives meet or exceed outcome targets.
“This digital vanguard distinguishes themselves from the rest of CIOs and CxOs because they co-own digital delivery,” said Raf Gelders, VP, Research at Gartner. “CIOs and CxOs are equally responsible, accountable and involved in delivering the digital solutions their enterprises need. This is a radical departure from the traditional paradigm of IT delivery and business ‘project sponsorship’ that predominates in most enterprises.”
Gartner analysts presented the survey findings during Gartner IT Symposium/Xpo, taking place here through Thursday. The 2025 Gartner CIO and Technology Executive Survey gathered data from 3,186 CIOs and technology executives (including 1,376 CIOs in EMEA) in 88 countries and all major industries. This survey was supplemented with insights from 1,126 executive leaders outside of IT.
“Behind every digital vanguard CxO, a digital vanguard CIO is guiding and enabling CxOs and their teams to co-lead and co-build digital delivery with IT,” said Daniel Sanchez-Reina, VP Analyst at Gartner. “Digital vanguard CIOs nurture their peers to become digital vanguard CxOs. Those CIOs make it easier for their CxOs to lead digital with them and for business area staff to build digital solutions together with IT.”
Capturing the $2 Trillion Personalization Opportunity with AI -- Boston Consulting Group
Over the next five years, $2 trillion in revenue will shift to companies that understand how to create personalized experiences and personalized communications. Most companies aren’t currently doing personalization very well, but new AI capabilities mean companies can personalize with unprecedented precision, and fine tune every customer interaction.
Those who compete using AI-empowered personalization will win today’s war for customers, according to Boston Consulting Group (BCG) executives Mark Abraham and David Edelman in their new book, Personalized: Customer Strategy in the Age of AI Predicated on a survey of 5,000 customers across ten countries, interviews with 100 senior industry leaders, and dozens of in-depth case studies the authors were involved in, the book is the definitive guide to harnessing AI to personalize the customer experience.
“Successful personalization leaders aren’t just implementing AI to optimize their communications. They have embraced a new mindset that promises to put the customer’s needs first,” said David Edelman , a BCG senior advisor, senior lecturer at Harvard Business School, and coauthor of the book. “By cultivating trust and loyalty through meaningful, relevant connections, they establish the foundation for building personalization at speed and scale.”
NOTE: BizTechReports is looking for thought leaders and subject matter experts to participate in its vidcast series on the latest developments in technology modernization and business transformation.
These are earned media opportunities -- there is no charge/cost associated with content we produce and publish on BizTechReports. We are looking for opportunities to have meaningful discussions on the trends and challenges shaping the business and technology industry today.
If you, or someone you know, is interested in contributing to the body of knowledge and providing context on how technology-enabled business strategies are driving transformation, please reach out.
You can schedule an appointment by clicking on the link below:
Looking forward to connecting!
LC
Lane Cooper, Editorial Director, BizTechReports
1-833-933-2953