australian organisations race to digital transformation ... · digital strategy lead by ceo: 68%...

29 October 2019 1© 2019 DXC Technology Company. All rights reserved.

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FOAD FADAGHI | Director, Telsyte

NICK MESCHER | Senior Partner, Digital Transformation

Beyond DisruptionAustralian organisations race to digital transformation success

© 2019 DXC Technology Company. All rights reserved. November 5, 2019

Beyond Disruption

Australian organisations race to digital transformation success


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About the research

Beyond Disruption is the second annual research study by Telsytein association with DXC Technology into the digital challenges and opportunities of more than 400 Australian organisations

► Telsyte conducted an online survey of 447 business and IT decision makers across Australian organisations with greater than 20 employees

► Sampling was conducted on a size of IT spend weighting basis, with approximately 60 per cent of respondents coming from organisations with greater than 200 employees

► Respondents were required to have a strong understanding of their organisation’s IT and technology purchasing and digital strategy, but were not limited to the CIO or IT staff

► The sample is representative of the top 54,200 operating businesses in Australia, with a confidence interval of +/-4.87 at a confidence level of 95 per cent

► Telsyte is Australia’s leading emerging technology analyst firm, and an independent business unit of DXC Technology


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DXC partners provided critical input in 2018Topic or input from PAC participants How was it used?

ROI of Digital transformation, impact on sales and revenue ROI and impact on sales revenue, brand etc covered

Uberisation Covered

Criteria for success KPIs covered

What's worked and what has failed More on % failed rather than what

Impact of security on DX Asked in DXC security survey

How do you stay ahead of competition Leapfrogging question

maturity and culture Covered separately, and cross tabbed, also done by biz size

Impact of DX on: staff levels, training and reskilling, IP retention, Brand

All these are covered

Industry level benchmarking Industry coverage in digital study 2019, large sample for some industries

Digital maturity of boards as well as other roles covered, as literacy

BU vs Org Asked previous year too

Digital Natives vs non-digital natives Made into whitepaper too!

Digital literacy as above for maturity

How can we use research in bootcamps Covered by Nick and Michael

Priorities of tech in DX This year is was IoT and 5G related as number 1

What is important for customers A whole chapter on role of customer

Change in culture and role in success Covered through role of CEO

Digital skills Covered by what roles being hired for DX

Skills shortage Asked previous year too, people shortages

Drivers for digital Asked, didn’t make whitepaper

Digital Goals or KPIs covered

Common definition of digital Covered

Who owns digital in the business CEO increasingly owning

Dependency on legacy systems holding back DX Asked, didn’t make whitepaper

Driving force behind DX Somewhat covered, but no gap analysis

Impact of regulation on Digital transformation Asked, didn’t make whitepaper due to length of paper

November 5, 2019 5© 2019 DXC Technology Company. All rights reserved.

MoreAustralian organisations are taking a holisticapproach to digital


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Yes, organisation wide41%

Yes, varies across

business units37%

No, but we are

investigating

17%

No, no plans5%

% SME Large Corporations

Yes –organisation wide

40 52 51

Yes – varies across business units

37 36 42

No, but we are investigating

17 7 6

No, no plans 5 5 1

Org-wide digital strategies overtook BU-approaches in 2018, driven by larger organisations taking a new approach

98

8 15 11

Figure 1 – Approaches to digital strategy Figure 2 – Approaches to digital strategy by organization size

Source: Telsyte Australian Digital Workplace Study 2019, n=447, base: all respondents, arrows indicate year on year changes


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In 2020, which approach to digital will most organisations adopt?

Business unitOrganisation–wideNo approach or still

investigatingDon’t know


More disruption coming: Are we adapting fast enough?


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1 in 3 organisations are afraid their industry will be “uberised”

Yes37%

No63%

Figure 16 – Fear of being ‘Uberised”Uberisation is the utilisation of computing platforms, such as mobile applications, in order to facilitate peer-to-peer transactions between clients and providers of a service, often bypassing the role of centrally planned corporations. The model has different operating costs compared to a traditional business. The term is derived from the company name "Uber". The company developed a mobile application that allows consumers to submit a trip request which is then routed to Uber drivers who use their own cars

Source: https://en.wikipedia.org/wiki/Uberisation

Source: Telsyte Australian Digital Workplace Study 2019, n=447


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Over 2 in 3 still take a reactive approach to digital disruption, notably SME sized organisations

Do nothing, business as usual10%We are looking to partner with digital disruptor organisations15%

We are already developing ways to digitally disrupt our industry7%

Keep an eye on it and react if and when it begins to

impact us…

9

Large orgs. twice as aggressive in disrupting industry (29%) and partnering (15%)

Figure 15 – Approach to digital disruption

Telsyte Australian Digital Workplace Study 2019, n=447, base: all respondents

9


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Disruption imminent: Over half believe they have less than 2 years to integrate a digital initiative

Less than 1 year10%

1 year…

2 years29%

3 years17%

4 years7%

5 years4%

More than 5 years7%

Not sure8%

Figure 14 – Perceived time organisation has to integrate a digital initiative before full impact of digital disruption

• On average it is believed that orgs have 2.2 years to integrate a digital initiative before the full impact of digital disruption hits

• 47% believe they need to integrate a digital initiative within 2 years



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In what timeframe are your main customers likely to be largely disrupted (or Uberised)?

Already happening

Don't know

In the next three years

Beyond three years time

Not likely to be disrupted


The CEO (and CIO relationship) is critical to digital transformation success


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1 in 3 CEOs are now involved in leading digital transformation strategy

4%

4%

5%

11%

7%

10%

21%

4%

33%

0% 5% 10% 15% 20% 25% 30% 35%

CDO

COO

CMO

CFO

CTO

IT team

CIO

Board or chairman of board

CEOSenior Leadership

C level – IT

C level – Other

Figure 27 – Who leads digital transformation strategy in the organization?

Source: Telsyte Australian Digital Workplace Study 2019, n=447, base: all respondents


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More than half of the workforce are digital natives in 2019

Digital native56%

Non-Digital native44%

Key Industries with natives76% Healthcare & Social assistance 69% Education & training66% Scientific and technical services

Key industries with non-digital natives56% Government (n=16)51% Administrative and Support (n=39)50% Banking and Finance (n=37)

Figure 29 – Proportion of employees that are ‘digital natives’Digital natives – are those born into the digital age, characterised by the abundance of modern personal computers, smartphones, search and social networking tools



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Worker and middle management digital literacy levels typically higher than C level; unless they are the digital strategy lead

57%

59%

64%

67%

59%

52% 54% 56% 58% 60% 62% 64% 66% 68%

Board

C level

Workers

Mid management

Overall

Digital strategy lead by board: 77%

Digital strategy lead by CEO: 68%Digital strategy lead by CIO: 63%Digital strategy lead by Other C: 51%

Figure 30 – Digital literacy levels by role

Source: Telsyte Australian Digital Workplace Study 2019, n=447, those rated 7 to 10 (literate to fully literate) on an eleven point scale


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Within your end user customers, which role is the most likely sponsor for digital transformation?

5. Other

1. Board, Council, Minister or similar

2. CEO, Department Secretary, Vice Chancellor or similar

3. Non-IT CxO (e.g. CFO)

4. CIO, CDO or other senior IT roles


AI will work alongside employees and create new roles –not just eliminate them


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35,000 new IT jobs need to be created in 2019 to meet growing demand for digital staff

5.6%Average IT headcount increase 2019

Representing ≈35,000 new IT jobs*

Figure 33 – Change in IT staff in next 12 months

Business size

Percentage (%) Total SME Large Corporations

Increase by 20%+ 1 1 1 -

Increase by 11%-20% 16 16 11 3

Increase by 5%-10% 35 34 45 49

Increase by less than 5% 17 16 20 23

No change 28 29 13 11

Decrease by less than 5% 1 1 4 5

Decrease by 5-10% 2 2 3 5

Average change head count 5.6 5.46 5.15 3.75

Source: Telsyte Australian Digital Workplace Study 2019, n=447, base: all respondents *Based on employment figures for IT workers using Australian Bureau of Statistics (ABS) occupation and industry classification in 2016

0.7


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38% Banking and Finance36% Admin, support & professional services

Digital transformation to drive AI roles: Over 1 in 3 in banking and finance orgs to create AI specific roles

6%7%7%7%

8%8%8%

9%9%

10%11%11%

13%15%

16%16%

17%18%

22%

0% 5% 10% 15% 20% 25%

Customer service representativesIT maintenance staff

Chief customer officerDatabase developer

Data engineerNetwork administrator

Operations staffChief internet of things officer

Chief analytics officer/Chief data officerData scientist

Chief digital officer (CDO)Data architect

Digital project managerBusiness intelligence analyst

IT staffAccountants

Administration staffCall centre staffAI specific roles

25% Government22% Wholesale trade

59% Banking and Finance30% Information media and telecommunications

32% Wholesale trade25% Government

Figure 32 – Roles created due to digital transformation



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In the next 12 months, which areas do you see the greatest number of roles being created due to digital transformation?

AI Specific Roles (Machine Learning, Cognition Engineer)

General Support and administration roles (Call Centre, Customer Service reps, etc)

Traditional IT Roles (Engineers, Programmers)

Data / Analyst Role (Data Scientists, Architect, BI Analysts)

Others


Summary of findings


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Key findings

6New cloud, connectivity and customer experience technologies drive digital agendas

8AI will work alongside employees and create new roles –not just eliminate them

3From profitability to brand: Counting the benefits of digital transformation

2Customer focus is crucial to digital transformation success

7The CEO is critical to digital transformation success

4Speed up success to avoid digital transformation failure

1More Australian organisations are taking a holistic approach to digital

5More disruption coming: Are we adapting fast enough?


Foad FadaghiManaging DirectorTelsyteTel: +612 9235 [email protected]@telsyte.com.autwitter: @foadfadaghilinkedin: au.linkedin.com/in/fadaghi

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australian organisations race to digital transformation ... · digital strategy lead by ceo: 68%...

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