In its ‘2020 Beyond Disruption’ report, based on around 600 interviews with business leaders in Australia and New Zealand, DXC Technology reveals the importance of adopting technology-led initiatives to build greater organizational resilience and sheds light on some of the key priorities. for any digital road map.
The majority (86%) of large organizations surveyed believe they have managed the disruption well so far, compared to a lower proportion of small and medium-sized enterprises (SMEs) at 61%. What has become abundantly clear is that technology is now seen by the vast majority of Australian and New Zealand organizations as the answer – or at least a large part of the answer – to overcoming disruption.
As a result, 68% of leaders told DXC Technology that they plan to update their technology strategy and plan to increase technology spending by 5% across the enterprise, rising to 10% for those with more than 1,000 employees, reaffirming that technology is key. activator.
In the past period, most organizations have invested in cloud services and improved cyber security, in mobile applications for communication with customers and employees, in remote learning platforms and in virtual employees such as chatbots and digital assistants.
Looking ahead, workplace modernization was singled out as the most important investment for the next 12 months, followed by data analytics and cloud services. Rounding out the top five priorities is strengthening cybersecurity and investing in enterprise applications, with a focus on transitioning from legacy applications to more modern ones.
However, successfully delivering and embedding digitally driven change is notorious for its pitfalls, with one estimate by McKinsey & Company showing that the success rate of digital transformation programs is lower than other programs at less than 50%, depending on scale, context and approach.
Five recommendations
Based on discussions with senior leaders as well as digital achievements to date, the authors (led by Asia Pacific Managing Director Seelan Nayagam) present five recommendations and priorities for digital transformation efforts.
Management and leadership are key
Using technology to create enterprise resilience cannot be an aspirational goal – instead, it must be a defined organizational strategy. Boards and executives must increase their technological literacy and ensure support for increased reliance on technology to ensure resilience.
Leaders must actively promote new thinking and ideas, be prepared to change business models and processes, and work with their employees to implement change. When adapting to new ways of working, the cultural impact of these changes on employee well-being needs to be carefully considered.
Create intuitive employee experiences
Choosing the right platforms for collaboration, workflow, reporting and planning is now more important than ever. Likewise, it makes sense to streamline core applications and standardize the employee experience within a single cloud platform. Sustainable, secure, simple, and scalable experiences enable employees to be multidisciplinary, better adaptable to change, and maximize their productivity and creativity.
As an individual’s location and chosen working hours no longer determine their level of productivity, employees expect technology solutions to make their lives easier so they can focus on getting their work done.
Modernize the technology core for flexibility and resilience
Technology modernization drives organizational flexibility to adapt to changing market conditions as well as take advantage of new opportunities. The monolithic platforms of the past are still holding back organizations far more than they realize. Furthermore, once the platforms have been in place for some time, it is important to optimize these investments to reduce the cost of serving customers. Automation will play a key role in managing core technology platforms; therefore, a clear and scalable solution is key to recovery and growth.
Secure your organization against increased threats
The fast-paced nature of the modern organization means that it is constantly changing its technological footprint. Unfortunately, these changes allow criminals to exploit weaknesses both directly in the technology and among the people who use it. Businesses must review all current security processes, ensure their employees have strong security awareness and training, and plan for business continuity.
It is imperative that security is part of everyday processes with a focus on simple, usable and modular solutions.
Harness the power of data
Organizations must harness the power of data and analytics to improve operational resilience, revitalize products and services, increase margins and drive growth. It is essential that organizations have access to trusted data that gives them a holistic view of their customers and operations in order to identify new opportunities and services based on data at scale.
It is important that this does not just happen organically, but is planned, managed and built into the business. Employees should be encouraged to improve their data literacy and use data in new and creative ways.
View
When it comes to the path to economic recovery, the study shows varying levels of optimism among ANZ organisations. Almost half (48%) of large organizations are confident they will fully recover by the end of the year, compared to just one in five SMEs. In general, half of respondents (54%) believe a full recovery will take one to three years, but only 6% said recovery is likely to take more than three years.