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Page 1: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

1

expleogroupcom

Expleo Business Transformation Index 2020

2

expleogroupcom

3

Competing in the digital era

Enterprises are racing to be disruptors the first with the newest boldest solutions They are propelling Ireland into the throes of the fourth industrial revolution We are no longer marvelling at the fact that every company is now a technology company we only want to know who in this new wave of business is doing technology the best

To delve further Expleo in association with TechPro magazine carried out a study amongst 143 technology decision-makers across the island of Ireland We found that far from baulking at the prospect of change Irelandrsquos business and technology leaders are embracing it They are introducing and piloting new technologies at an immense pace and they are making significant investments in overcoming the barriers that conspire against their success They are entering and creating a daring new world of technology becoming game-changers amidst the global din of digital

Business is changing Customers are fleeting as their demand for seamless interaction with products and services grows Add Irelandrsquos enviable position as a hub for multinational investment to the equation and the result is a fiercely competitive market in which the key differentiator is innovation

4

ContentsForeword by Paul Hearns 5

Key findings 6

Embracing change 7

Getting the right people 10

Looking to the future 12

Being responsible 13

Summary 14

Recommendations 15

Afterword by Phil Codd 18

Talk to us 19

5

ForewordIt is said the best way to determine your future is to make it

While that may sound attractive it is also a tacit acknowledgment of the inadequacy of the present and the need for change That need for change ndash cultural social commercial and political ndash has developed at such a pace that we have become almost immured to it as everyone is coping with the same pressures

What has emerged from this is the endless quest for efficiency but how that is achieved has become almost unrecognisable No more are there monolithic change programmes where the shutters are pulled down for months or years only for a new entity to emerge as from a chrysalis pumping new blood into glistening wings Now change happens rapidly in small steps everywhere simultaneously and generally in full view The risks are significant but the promise is many orders of magnitude greater

Digital technologies have enabled businesses to transform in ways previously unimaginable but also at a pace and scale previously unattainable

In all of that haste there will be inevitable stumbles and some casualties but the relentless nature of it all means a tide of change without and within that is irresistible

That momentum has reached and engulfed Irish organisations as reflected by the sentiment in this survey By embracing the opportunity of digital transformation Irish organisations have shown that they not only understand the prevailing influences but also that they know they must ride the wave of change rather than be driven beneath it

It is heartening indeed to see the levels of adoption in emerging areas such as artificial intelligence machine learning automation and more where these technologies are already delivering value

Furthermore it is encouraging to see that some of the chief inhibitors for implementation of new technologies are by contrast not new at all This is a good thing because being familiar those inhibitors are more easily and comprehensively dispensed with to facilitate true deep and lasting transformation

Though the sentiment around sustainability could be seen as a negative it also reflects how widespread the understanding of the need for sustainable practices are for the future of the industry and of society Through this awareness todayrsquos leaders can be informed and tomorrowrsquos leaders prepared for the challenges of doing better for the benefit of all

There are many positives to be taken from this research Irish organisations are embracing change and thriving as a result It is to be commended that the findings are taken to the widest possible audience to promote the positives allowing all to learn from those who have succeeded through transformation

Paul HearnsEditor (TechPro)amp Head of Content Technology Division (Mediateam)

6

Key findings

85thinsp of organisations across

the island of Ireland are using automated technologies

73thinsp of firms using automation

say it helps employees to focus on business-critical tasks

32thinsp of businesses are currently

implementing artificial intelligence or machine learning projects

24thinsp

of Irelandrsquos technology decision-makers believe that by 2024 artificial

intelligence technologies will be more reliable than humans in

making critical business decisions

The cost of digital skills shortages to the average

Irish enterprise in 2019 was

eurothinsp981439

76thinsp of businesses are losing money

because of the digital skills shortage while 47thinsp say it is

hampering digital transformation

56thinsp

of organisations outsource the management or support of their

digital transformation processes to an external service provider

Top barriers to the implementation of new technologies include

54thinsp Budgetary constraints

36thinsplack of buy-in from senior executives

and board members

The average enterprise expects the total cost of getting

their IT departmentinfrastructure Brexit-ready to be

eurothinsp435949

62thinsp

of technology leaders on the island of Ireland believe their company

should be doing more to be a responsible organisation

7

Embracing changeFrom Belfastrsquos Titanic Quarter to Cork innovation is happening across the island of Ireland as businesses relentlessly look to do things better They are disrupting industries and in many cases lives To do this increasingly they are relying on the latest breakthroughs in technology to entice new customers and hold onto existing ones

The more organisations embrace this digital transformation the more customer expectations rise It is breeding a digital-first customer base that demands simplicity in every transaction and interaction And so enterprises enter a constant cycle of innovation that requires them to continually roll out new customer-focused solutions and make constant improvements to them just as quickly

Just as customers require simplicity so do businesses By automating certain processes they can ensure employees are focused on the solutions that will help them to compete and grow in the digital world Our research found that most Irish organisations (85thinsp) are

now using automated technologies to some degree with 60thinsp of those saying it is helping them to generate revenues

As automationrsquos business potential continues to unfold the opportunities for deployment rise in tandem As a result almost all (94thinsp) of technology leaders now believe it will be making an impact in their organisation in the next three years The greatest effect automation will have in the future say 73thinsp of technology decision-makers is that it will help employees to focus on business-critical tasks The same proportion expects it to speed up their processes ndash a virtue in the perpetual world of innovation Almost two-thirds (64thinsp) meanwhile say it will reduce costs

8

But for most cutting costs doesnrsquot translate into job losses ndash despite fears that the rise of automation will leave many roles redundant In fact 58thinsp of technology leaders say automation hasnrsquot affected their job numbers at all A further 20thinsp say they have created jobs as a result of deploying automated technologies

The promise of automation has ensured that adoption has been quick and widespread But itrsquos not the only way organisations are digitising their processes and solutions in order to thrive in the changing environment Long touted as technologies that would change the world artificial intelligence (AI) and machine learning (ML) are now starting to prove their worth to technology leaders

Whether itrsquos supporting automation projects analysing data or incorporating machines into the workforce almost one-third (32thinsp) are already implementing AI and ML projects while 45thinsp plan to increase their use of AI and ML in the next three years Machines may even be more reliable than humans in making business-critical decisions by 2024 according to 24thinsp of Irelandrsquos IT leaders

The consensus around blockchain is less enthusiastic More than one-third (36thinsp) of technology leaders donrsquot believe it is important to their organisation right now while 14 donrsquot think it will ever be relevant That is despite the latest evaluation from Gartner which predicts that the business impact of blockchain will be transformational across most industries within the next five to 10 years1)

Nevertheless there are firms looking to find out how blockchain can work for them Our survey showed that 22thinsp of businesses across the island of Ireland are already using blockchain or are running a pilot An additional 6thinsp will begin a blockchain project in the next 12 months and 18thinsp plan to investigate its benefits in the next year Worryingly 24thinsp already believe it is important but they donrsquot have the right understanding within their organisation to implement it

While enterprises are in agreement that business transformation will rely heavily on their technological prowess Irelandrsquos technology leaders nevertheless face push-back when it comes to getting project sign-off The biggest impediments to implementing new technologies cited by survey respondents included budgetary constraints (54thinsp) and lack of buy-in from senior executives and board members (36thinsp)

1) Gartner 2019 Hype Cycle for Blockchain Business Shows Blockchain Will Have a Transformational Impact across Industries in Five to 10 Years

9

45

of Irish organisations plan to

increase their use of artificial intelligence and machine learning

in the next three years

20

of enterprises using

automated technologies say it has resulted in

jobs growth

10

Getting the right peopleThe inability to hire the right or enough skilled digital workers is one of the greatest barriers to business transformation in Ireland On a nuclear scale it inhibits innovation But the actual impact of that can be disastrous across all departments of an organisation Our research into the digital skills shortage provides a valuable insight into the critical role technology now plays in businessesrsquo existence today

The dearth in digital talent is felt by almost every organisation operating in Ireland as they find themselves without the in-house skills or knowledge to implement the technologies that will differentiate them from their competitors When taking into account factors such as the cost of upskilling outsourcing recruiting outside the island of Ireland and lost business opportunities we found that the cost of the digital skills shortage to the average Irish enterprise was eurothinsp981439 in 2019 In total some 76thinsp of Irish organisations admit that they are losing money because of the digital skills shortage

But the long-term effects will see those figures increase as enterprise success increasingly becomes intertwined with the success of the IT department Almost half (47thinsp) of those surveyed said the lack of digital talent is hampering their companyrsquos digital transformation while one-third said it has slowed down their speed to market for innovative new products It is not surprising then that 15thinsp of businesses say the digital skills deficit has frozen their revenue growth entirely while 13thinsp say it has halted their international growth

Evidently it is a handicap that organisations canrsquot afford Our research found that enterprises are taking a proactive multi-faceted approach in order to minimise the consequences More than half (52thinsp) are outsourcing some of their IT work while 22thinsp are outsourcing certain functions completely Nearly one-third (30thinsp) are recruiting from outside of Ireland 20thinsp are recruiting more graduates and 19thinsp are increasing their spend on IT training

Despite the evident problems it is creating for enterprises 12thinsp of technology leaders say they donrsquot have a strategy to address the skills shortage leaving themselves in a precarious position as they navigate a fast-moving business landscape

10

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 2: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

2

expleogroupcom

3

Competing in the digital era

Enterprises are racing to be disruptors the first with the newest boldest solutions They are propelling Ireland into the throes of the fourth industrial revolution We are no longer marvelling at the fact that every company is now a technology company we only want to know who in this new wave of business is doing technology the best

To delve further Expleo in association with TechPro magazine carried out a study amongst 143 technology decision-makers across the island of Ireland We found that far from baulking at the prospect of change Irelandrsquos business and technology leaders are embracing it They are introducing and piloting new technologies at an immense pace and they are making significant investments in overcoming the barriers that conspire against their success They are entering and creating a daring new world of technology becoming game-changers amidst the global din of digital

Business is changing Customers are fleeting as their demand for seamless interaction with products and services grows Add Irelandrsquos enviable position as a hub for multinational investment to the equation and the result is a fiercely competitive market in which the key differentiator is innovation

4

ContentsForeword by Paul Hearns 5

Key findings 6

Embracing change 7

Getting the right people 10

Looking to the future 12

Being responsible 13

Summary 14

Recommendations 15

Afterword by Phil Codd 18

Talk to us 19

5

ForewordIt is said the best way to determine your future is to make it

While that may sound attractive it is also a tacit acknowledgment of the inadequacy of the present and the need for change That need for change ndash cultural social commercial and political ndash has developed at such a pace that we have become almost immured to it as everyone is coping with the same pressures

What has emerged from this is the endless quest for efficiency but how that is achieved has become almost unrecognisable No more are there monolithic change programmes where the shutters are pulled down for months or years only for a new entity to emerge as from a chrysalis pumping new blood into glistening wings Now change happens rapidly in small steps everywhere simultaneously and generally in full view The risks are significant but the promise is many orders of magnitude greater

Digital technologies have enabled businesses to transform in ways previously unimaginable but also at a pace and scale previously unattainable

In all of that haste there will be inevitable stumbles and some casualties but the relentless nature of it all means a tide of change without and within that is irresistible

That momentum has reached and engulfed Irish organisations as reflected by the sentiment in this survey By embracing the opportunity of digital transformation Irish organisations have shown that they not only understand the prevailing influences but also that they know they must ride the wave of change rather than be driven beneath it

It is heartening indeed to see the levels of adoption in emerging areas such as artificial intelligence machine learning automation and more where these technologies are already delivering value

Furthermore it is encouraging to see that some of the chief inhibitors for implementation of new technologies are by contrast not new at all This is a good thing because being familiar those inhibitors are more easily and comprehensively dispensed with to facilitate true deep and lasting transformation

Though the sentiment around sustainability could be seen as a negative it also reflects how widespread the understanding of the need for sustainable practices are for the future of the industry and of society Through this awareness todayrsquos leaders can be informed and tomorrowrsquos leaders prepared for the challenges of doing better for the benefit of all

There are many positives to be taken from this research Irish organisations are embracing change and thriving as a result It is to be commended that the findings are taken to the widest possible audience to promote the positives allowing all to learn from those who have succeeded through transformation

Paul HearnsEditor (TechPro)amp Head of Content Technology Division (Mediateam)

6

Key findings

85thinsp of organisations across

the island of Ireland are using automated technologies

73thinsp of firms using automation

say it helps employees to focus on business-critical tasks

32thinsp of businesses are currently

implementing artificial intelligence or machine learning projects

24thinsp

of Irelandrsquos technology decision-makers believe that by 2024 artificial

intelligence technologies will be more reliable than humans in

making critical business decisions

The cost of digital skills shortages to the average

Irish enterprise in 2019 was

eurothinsp981439

76thinsp of businesses are losing money

because of the digital skills shortage while 47thinsp say it is

hampering digital transformation

56thinsp

of organisations outsource the management or support of their

digital transformation processes to an external service provider

Top barriers to the implementation of new technologies include

54thinsp Budgetary constraints

36thinsplack of buy-in from senior executives

and board members

The average enterprise expects the total cost of getting

their IT departmentinfrastructure Brexit-ready to be

eurothinsp435949

62thinsp

of technology leaders on the island of Ireland believe their company

should be doing more to be a responsible organisation

7

Embracing changeFrom Belfastrsquos Titanic Quarter to Cork innovation is happening across the island of Ireland as businesses relentlessly look to do things better They are disrupting industries and in many cases lives To do this increasingly they are relying on the latest breakthroughs in technology to entice new customers and hold onto existing ones

The more organisations embrace this digital transformation the more customer expectations rise It is breeding a digital-first customer base that demands simplicity in every transaction and interaction And so enterprises enter a constant cycle of innovation that requires them to continually roll out new customer-focused solutions and make constant improvements to them just as quickly

Just as customers require simplicity so do businesses By automating certain processes they can ensure employees are focused on the solutions that will help them to compete and grow in the digital world Our research found that most Irish organisations (85thinsp) are

now using automated technologies to some degree with 60thinsp of those saying it is helping them to generate revenues

As automationrsquos business potential continues to unfold the opportunities for deployment rise in tandem As a result almost all (94thinsp) of technology leaders now believe it will be making an impact in their organisation in the next three years The greatest effect automation will have in the future say 73thinsp of technology decision-makers is that it will help employees to focus on business-critical tasks The same proportion expects it to speed up their processes ndash a virtue in the perpetual world of innovation Almost two-thirds (64thinsp) meanwhile say it will reduce costs

8

But for most cutting costs doesnrsquot translate into job losses ndash despite fears that the rise of automation will leave many roles redundant In fact 58thinsp of technology leaders say automation hasnrsquot affected their job numbers at all A further 20thinsp say they have created jobs as a result of deploying automated technologies

The promise of automation has ensured that adoption has been quick and widespread But itrsquos not the only way organisations are digitising their processes and solutions in order to thrive in the changing environment Long touted as technologies that would change the world artificial intelligence (AI) and machine learning (ML) are now starting to prove their worth to technology leaders

Whether itrsquos supporting automation projects analysing data or incorporating machines into the workforce almost one-third (32thinsp) are already implementing AI and ML projects while 45thinsp plan to increase their use of AI and ML in the next three years Machines may even be more reliable than humans in making business-critical decisions by 2024 according to 24thinsp of Irelandrsquos IT leaders

The consensus around blockchain is less enthusiastic More than one-third (36thinsp) of technology leaders donrsquot believe it is important to their organisation right now while 14 donrsquot think it will ever be relevant That is despite the latest evaluation from Gartner which predicts that the business impact of blockchain will be transformational across most industries within the next five to 10 years1)

Nevertheless there are firms looking to find out how blockchain can work for them Our survey showed that 22thinsp of businesses across the island of Ireland are already using blockchain or are running a pilot An additional 6thinsp will begin a blockchain project in the next 12 months and 18thinsp plan to investigate its benefits in the next year Worryingly 24thinsp already believe it is important but they donrsquot have the right understanding within their organisation to implement it

While enterprises are in agreement that business transformation will rely heavily on their technological prowess Irelandrsquos technology leaders nevertheless face push-back when it comes to getting project sign-off The biggest impediments to implementing new technologies cited by survey respondents included budgetary constraints (54thinsp) and lack of buy-in from senior executives and board members (36thinsp)

1) Gartner 2019 Hype Cycle for Blockchain Business Shows Blockchain Will Have a Transformational Impact across Industries in Five to 10 Years

9

45

of Irish organisations plan to

increase their use of artificial intelligence and machine learning

in the next three years

20

of enterprises using

automated technologies say it has resulted in

jobs growth

10

Getting the right peopleThe inability to hire the right or enough skilled digital workers is one of the greatest barriers to business transformation in Ireland On a nuclear scale it inhibits innovation But the actual impact of that can be disastrous across all departments of an organisation Our research into the digital skills shortage provides a valuable insight into the critical role technology now plays in businessesrsquo existence today

The dearth in digital talent is felt by almost every organisation operating in Ireland as they find themselves without the in-house skills or knowledge to implement the technologies that will differentiate them from their competitors When taking into account factors such as the cost of upskilling outsourcing recruiting outside the island of Ireland and lost business opportunities we found that the cost of the digital skills shortage to the average Irish enterprise was eurothinsp981439 in 2019 In total some 76thinsp of Irish organisations admit that they are losing money because of the digital skills shortage

But the long-term effects will see those figures increase as enterprise success increasingly becomes intertwined with the success of the IT department Almost half (47thinsp) of those surveyed said the lack of digital talent is hampering their companyrsquos digital transformation while one-third said it has slowed down their speed to market for innovative new products It is not surprising then that 15thinsp of businesses say the digital skills deficit has frozen their revenue growth entirely while 13thinsp say it has halted their international growth

Evidently it is a handicap that organisations canrsquot afford Our research found that enterprises are taking a proactive multi-faceted approach in order to minimise the consequences More than half (52thinsp) are outsourcing some of their IT work while 22thinsp are outsourcing certain functions completely Nearly one-third (30thinsp) are recruiting from outside of Ireland 20thinsp are recruiting more graduates and 19thinsp are increasing their spend on IT training

Despite the evident problems it is creating for enterprises 12thinsp of technology leaders say they donrsquot have a strategy to address the skills shortage leaving themselves in a precarious position as they navigate a fast-moving business landscape

10

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 3: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

3

Competing in the digital era

Enterprises are racing to be disruptors the first with the newest boldest solutions They are propelling Ireland into the throes of the fourth industrial revolution We are no longer marvelling at the fact that every company is now a technology company we only want to know who in this new wave of business is doing technology the best

To delve further Expleo in association with TechPro magazine carried out a study amongst 143 technology decision-makers across the island of Ireland We found that far from baulking at the prospect of change Irelandrsquos business and technology leaders are embracing it They are introducing and piloting new technologies at an immense pace and they are making significant investments in overcoming the barriers that conspire against their success They are entering and creating a daring new world of technology becoming game-changers amidst the global din of digital

Business is changing Customers are fleeting as their demand for seamless interaction with products and services grows Add Irelandrsquos enviable position as a hub for multinational investment to the equation and the result is a fiercely competitive market in which the key differentiator is innovation

4

ContentsForeword by Paul Hearns 5

Key findings 6

Embracing change 7

Getting the right people 10

Looking to the future 12

Being responsible 13

Summary 14

Recommendations 15

Afterword by Phil Codd 18

Talk to us 19

5

ForewordIt is said the best way to determine your future is to make it

While that may sound attractive it is also a tacit acknowledgment of the inadequacy of the present and the need for change That need for change ndash cultural social commercial and political ndash has developed at such a pace that we have become almost immured to it as everyone is coping with the same pressures

What has emerged from this is the endless quest for efficiency but how that is achieved has become almost unrecognisable No more are there monolithic change programmes where the shutters are pulled down for months or years only for a new entity to emerge as from a chrysalis pumping new blood into glistening wings Now change happens rapidly in small steps everywhere simultaneously and generally in full view The risks are significant but the promise is many orders of magnitude greater

Digital technologies have enabled businesses to transform in ways previously unimaginable but also at a pace and scale previously unattainable

In all of that haste there will be inevitable stumbles and some casualties but the relentless nature of it all means a tide of change without and within that is irresistible

That momentum has reached and engulfed Irish organisations as reflected by the sentiment in this survey By embracing the opportunity of digital transformation Irish organisations have shown that they not only understand the prevailing influences but also that they know they must ride the wave of change rather than be driven beneath it

It is heartening indeed to see the levels of adoption in emerging areas such as artificial intelligence machine learning automation and more where these technologies are already delivering value

Furthermore it is encouraging to see that some of the chief inhibitors for implementation of new technologies are by contrast not new at all This is a good thing because being familiar those inhibitors are more easily and comprehensively dispensed with to facilitate true deep and lasting transformation

Though the sentiment around sustainability could be seen as a negative it also reflects how widespread the understanding of the need for sustainable practices are for the future of the industry and of society Through this awareness todayrsquos leaders can be informed and tomorrowrsquos leaders prepared for the challenges of doing better for the benefit of all

There are many positives to be taken from this research Irish organisations are embracing change and thriving as a result It is to be commended that the findings are taken to the widest possible audience to promote the positives allowing all to learn from those who have succeeded through transformation

Paul HearnsEditor (TechPro)amp Head of Content Technology Division (Mediateam)

6

Key findings

85thinsp of organisations across

the island of Ireland are using automated technologies

73thinsp of firms using automation

say it helps employees to focus on business-critical tasks

32thinsp of businesses are currently

implementing artificial intelligence or machine learning projects

24thinsp

of Irelandrsquos technology decision-makers believe that by 2024 artificial

intelligence technologies will be more reliable than humans in

making critical business decisions

The cost of digital skills shortages to the average

Irish enterprise in 2019 was

eurothinsp981439

76thinsp of businesses are losing money

because of the digital skills shortage while 47thinsp say it is

hampering digital transformation

56thinsp

of organisations outsource the management or support of their

digital transformation processes to an external service provider

Top barriers to the implementation of new technologies include

54thinsp Budgetary constraints

36thinsplack of buy-in from senior executives

and board members

The average enterprise expects the total cost of getting

their IT departmentinfrastructure Brexit-ready to be

eurothinsp435949

62thinsp

of technology leaders on the island of Ireland believe their company

should be doing more to be a responsible organisation

7

Embracing changeFrom Belfastrsquos Titanic Quarter to Cork innovation is happening across the island of Ireland as businesses relentlessly look to do things better They are disrupting industries and in many cases lives To do this increasingly they are relying on the latest breakthroughs in technology to entice new customers and hold onto existing ones

The more organisations embrace this digital transformation the more customer expectations rise It is breeding a digital-first customer base that demands simplicity in every transaction and interaction And so enterprises enter a constant cycle of innovation that requires them to continually roll out new customer-focused solutions and make constant improvements to them just as quickly

Just as customers require simplicity so do businesses By automating certain processes they can ensure employees are focused on the solutions that will help them to compete and grow in the digital world Our research found that most Irish organisations (85thinsp) are

now using automated technologies to some degree with 60thinsp of those saying it is helping them to generate revenues

As automationrsquos business potential continues to unfold the opportunities for deployment rise in tandem As a result almost all (94thinsp) of technology leaders now believe it will be making an impact in their organisation in the next three years The greatest effect automation will have in the future say 73thinsp of technology decision-makers is that it will help employees to focus on business-critical tasks The same proportion expects it to speed up their processes ndash a virtue in the perpetual world of innovation Almost two-thirds (64thinsp) meanwhile say it will reduce costs

8

But for most cutting costs doesnrsquot translate into job losses ndash despite fears that the rise of automation will leave many roles redundant In fact 58thinsp of technology leaders say automation hasnrsquot affected their job numbers at all A further 20thinsp say they have created jobs as a result of deploying automated technologies

The promise of automation has ensured that adoption has been quick and widespread But itrsquos not the only way organisations are digitising their processes and solutions in order to thrive in the changing environment Long touted as technologies that would change the world artificial intelligence (AI) and machine learning (ML) are now starting to prove their worth to technology leaders

Whether itrsquos supporting automation projects analysing data or incorporating machines into the workforce almost one-third (32thinsp) are already implementing AI and ML projects while 45thinsp plan to increase their use of AI and ML in the next three years Machines may even be more reliable than humans in making business-critical decisions by 2024 according to 24thinsp of Irelandrsquos IT leaders

The consensus around blockchain is less enthusiastic More than one-third (36thinsp) of technology leaders donrsquot believe it is important to their organisation right now while 14 donrsquot think it will ever be relevant That is despite the latest evaluation from Gartner which predicts that the business impact of blockchain will be transformational across most industries within the next five to 10 years1)

Nevertheless there are firms looking to find out how blockchain can work for them Our survey showed that 22thinsp of businesses across the island of Ireland are already using blockchain or are running a pilot An additional 6thinsp will begin a blockchain project in the next 12 months and 18thinsp plan to investigate its benefits in the next year Worryingly 24thinsp already believe it is important but they donrsquot have the right understanding within their organisation to implement it

While enterprises are in agreement that business transformation will rely heavily on their technological prowess Irelandrsquos technology leaders nevertheless face push-back when it comes to getting project sign-off The biggest impediments to implementing new technologies cited by survey respondents included budgetary constraints (54thinsp) and lack of buy-in from senior executives and board members (36thinsp)

1) Gartner 2019 Hype Cycle for Blockchain Business Shows Blockchain Will Have a Transformational Impact across Industries in Five to 10 Years

9

45

of Irish organisations plan to

increase their use of artificial intelligence and machine learning

in the next three years

20

of enterprises using

automated technologies say it has resulted in

jobs growth

10

Getting the right peopleThe inability to hire the right or enough skilled digital workers is one of the greatest barriers to business transformation in Ireland On a nuclear scale it inhibits innovation But the actual impact of that can be disastrous across all departments of an organisation Our research into the digital skills shortage provides a valuable insight into the critical role technology now plays in businessesrsquo existence today

The dearth in digital talent is felt by almost every organisation operating in Ireland as they find themselves without the in-house skills or knowledge to implement the technologies that will differentiate them from their competitors When taking into account factors such as the cost of upskilling outsourcing recruiting outside the island of Ireland and lost business opportunities we found that the cost of the digital skills shortage to the average Irish enterprise was eurothinsp981439 in 2019 In total some 76thinsp of Irish organisations admit that they are losing money because of the digital skills shortage

But the long-term effects will see those figures increase as enterprise success increasingly becomes intertwined with the success of the IT department Almost half (47thinsp) of those surveyed said the lack of digital talent is hampering their companyrsquos digital transformation while one-third said it has slowed down their speed to market for innovative new products It is not surprising then that 15thinsp of businesses say the digital skills deficit has frozen their revenue growth entirely while 13thinsp say it has halted their international growth

Evidently it is a handicap that organisations canrsquot afford Our research found that enterprises are taking a proactive multi-faceted approach in order to minimise the consequences More than half (52thinsp) are outsourcing some of their IT work while 22thinsp are outsourcing certain functions completely Nearly one-third (30thinsp) are recruiting from outside of Ireland 20thinsp are recruiting more graduates and 19thinsp are increasing their spend on IT training

Despite the evident problems it is creating for enterprises 12thinsp of technology leaders say they donrsquot have a strategy to address the skills shortage leaving themselves in a precarious position as they navigate a fast-moving business landscape

10

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 4: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

4

ContentsForeword by Paul Hearns 5

Key findings 6

Embracing change 7

Getting the right people 10

Looking to the future 12

Being responsible 13

Summary 14

Recommendations 15

Afterword by Phil Codd 18

Talk to us 19

5

ForewordIt is said the best way to determine your future is to make it

While that may sound attractive it is also a tacit acknowledgment of the inadequacy of the present and the need for change That need for change ndash cultural social commercial and political ndash has developed at such a pace that we have become almost immured to it as everyone is coping with the same pressures

What has emerged from this is the endless quest for efficiency but how that is achieved has become almost unrecognisable No more are there monolithic change programmes where the shutters are pulled down for months or years only for a new entity to emerge as from a chrysalis pumping new blood into glistening wings Now change happens rapidly in small steps everywhere simultaneously and generally in full view The risks are significant but the promise is many orders of magnitude greater

Digital technologies have enabled businesses to transform in ways previously unimaginable but also at a pace and scale previously unattainable

In all of that haste there will be inevitable stumbles and some casualties but the relentless nature of it all means a tide of change without and within that is irresistible

That momentum has reached and engulfed Irish organisations as reflected by the sentiment in this survey By embracing the opportunity of digital transformation Irish organisations have shown that they not only understand the prevailing influences but also that they know they must ride the wave of change rather than be driven beneath it

It is heartening indeed to see the levels of adoption in emerging areas such as artificial intelligence machine learning automation and more where these technologies are already delivering value

Furthermore it is encouraging to see that some of the chief inhibitors for implementation of new technologies are by contrast not new at all This is a good thing because being familiar those inhibitors are more easily and comprehensively dispensed with to facilitate true deep and lasting transformation

Though the sentiment around sustainability could be seen as a negative it also reflects how widespread the understanding of the need for sustainable practices are for the future of the industry and of society Through this awareness todayrsquos leaders can be informed and tomorrowrsquos leaders prepared for the challenges of doing better for the benefit of all

There are many positives to be taken from this research Irish organisations are embracing change and thriving as a result It is to be commended that the findings are taken to the widest possible audience to promote the positives allowing all to learn from those who have succeeded through transformation

Paul HearnsEditor (TechPro)amp Head of Content Technology Division (Mediateam)

6

Key findings

85thinsp of organisations across

the island of Ireland are using automated technologies

73thinsp of firms using automation

say it helps employees to focus on business-critical tasks

32thinsp of businesses are currently

implementing artificial intelligence or machine learning projects

24thinsp

of Irelandrsquos technology decision-makers believe that by 2024 artificial

intelligence technologies will be more reliable than humans in

making critical business decisions

The cost of digital skills shortages to the average

Irish enterprise in 2019 was

eurothinsp981439

76thinsp of businesses are losing money

because of the digital skills shortage while 47thinsp say it is

hampering digital transformation

56thinsp

of organisations outsource the management or support of their

digital transformation processes to an external service provider

Top barriers to the implementation of new technologies include

54thinsp Budgetary constraints

36thinsplack of buy-in from senior executives

and board members

The average enterprise expects the total cost of getting

their IT departmentinfrastructure Brexit-ready to be

eurothinsp435949

62thinsp

of technology leaders on the island of Ireland believe their company

should be doing more to be a responsible organisation

7

Embracing changeFrom Belfastrsquos Titanic Quarter to Cork innovation is happening across the island of Ireland as businesses relentlessly look to do things better They are disrupting industries and in many cases lives To do this increasingly they are relying on the latest breakthroughs in technology to entice new customers and hold onto existing ones

The more organisations embrace this digital transformation the more customer expectations rise It is breeding a digital-first customer base that demands simplicity in every transaction and interaction And so enterprises enter a constant cycle of innovation that requires them to continually roll out new customer-focused solutions and make constant improvements to them just as quickly

Just as customers require simplicity so do businesses By automating certain processes they can ensure employees are focused on the solutions that will help them to compete and grow in the digital world Our research found that most Irish organisations (85thinsp) are

now using automated technologies to some degree with 60thinsp of those saying it is helping them to generate revenues

As automationrsquos business potential continues to unfold the opportunities for deployment rise in tandem As a result almost all (94thinsp) of technology leaders now believe it will be making an impact in their organisation in the next three years The greatest effect automation will have in the future say 73thinsp of technology decision-makers is that it will help employees to focus on business-critical tasks The same proportion expects it to speed up their processes ndash a virtue in the perpetual world of innovation Almost two-thirds (64thinsp) meanwhile say it will reduce costs

8

But for most cutting costs doesnrsquot translate into job losses ndash despite fears that the rise of automation will leave many roles redundant In fact 58thinsp of technology leaders say automation hasnrsquot affected their job numbers at all A further 20thinsp say they have created jobs as a result of deploying automated technologies

The promise of automation has ensured that adoption has been quick and widespread But itrsquos not the only way organisations are digitising their processes and solutions in order to thrive in the changing environment Long touted as technologies that would change the world artificial intelligence (AI) and machine learning (ML) are now starting to prove their worth to technology leaders

Whether itrsquos supporting automation projects analysing data or incorporating machines into the workforce almost one-third (32thinsp) are already implementing AI and ML projects while 45thinsp plan to increase their use of AI and ML in the next three years Machines may even be more reliable than humans in making business-critical decisions by 2024 according to 24thinsp of Irelandrsquos IT leaders

The consensus around blockchain is less enthusiastic More than one-third (36thinsp) of technology leaders donrsquot believe it is important to their organisation right now while 14 donrsquot think it will ever be relevant That is despite the latest evaluation from Gartner which predicts that the business impact of blockchain will be transformational across most industries within the next five to 10 years1)

Nevertheless there are firms looking to find out how blockchain can work for them Our survey showed that 22thinsp of businesses across the island of Ireland are already using blockchain or are running a pilot An additional 6thinsp will begin a blockchain project in the next 12 months and 18thinsp plan to investigate its benefits in the next year Worryingly 24thinsp already believe it is important but they donrsquot have the right understanding within their organisation to implement it

While enterprises are in agreement that business transformation will rely heavily on their technological prowess Irelandrsquos technology leaders nevertheless face push-back when it comes to getting project sign-off The biggest impediments to implementing new technologies cited by survey respondents included budgetary constraints (54thinsp) and lack of buy-in from senior executives and board members (36thinsp)

1) Gartner 2019 Hype Cycle for Blockchain Business Shows Blockchain Will Have a Transformational Impact across Industries in Five to 10 Years

9

45

of Irish organisations plan to

increase their use of artificial intelligence and machine learning

in the next three years

20

of enterprises using

automated technologies say it has resulted in

jobs growth

10

Getting the right peopleThe inability to hire the right or enough skilled digital workers is one of the greatest barriers to business transformation in Ireland On a nuclear scale it inhibits innovation But the actual impact of that can be disastrous across all departments of an organisation Our research into the digital skills shortage provides a valuable insight into the critical role technology now plays in businessesrsquo existence today

The dearth in digital talent is felt by almost every organisation operating in Ireland as they find themselves without the in-house skills or knowledge to implement the technologies that will differentiate them from their competitors When taking into account factors such as the cost of upskilling outsourcing recruiting outside the island of Ireland and lost business opportunities we found that the cost of the digital skills shortage to the average Irish enterprise was eurothinsp981439 in 2019 In total some 76thinsp of Irish organisations admit that they are losing money because of the digital skills shortage

But the long-term effects will see those figures increase as enterprise success increasingly becomes intertwined with the success of the IT department Almost half (47thinsp) of those surveyed said the lack of digital talent is hampering their companyrsquos digital transformation while one-third said it has slowed down their speed to market for innovative new products It is not surprising then that 15thinsp of businesses say the digital skills deficit has frozen their revenue growth entirely while 13thinsp say it has halted their international growth

Evidently it is a handicap that organisations canrsquot afford Our research found that enterprises are taking a proactive multi-faceted approach in order to minimise the consequences More than half (52thinsp) are outsourcing some of their IT work while 22thinsp are outsourcing certain functions completely Nearly one-third (30thinsp) are recruiting from outside of Ireland 20thinsp are recruiting more graduates and 19thinsp are increasing their spend on IT training

Despite the evident problems it is creating for enterprises 12thinsp of technology leaders say they donrsquot have a strategy to address the skills shortage leaving themselves in a precarious position as they navigate a fast-moving business landscape

10

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 5: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

5

ForewordIt is said the best way to determine your future is to make it

While that may sound attractive it is also a tacit acknowledgment of the inadequacy of the present and the need for change That need for change ndash cultural social commercial and political ndash has developed at such a pace that we have become almost immured to it as everyone is coping with the same pressures

What has emerged from this is the endless quest for efficiency but how that is achieved has become almost unrecognisable No more are there monolithic change programmes where the shutters are pulled down for months or years only for a new entity to emerge as from a chrysalis pumping new blood into glistening wings Now change happens rapidly in small steps everywhere simultaneously and generally in full view The risks are significant but the promise is many orders of magnitude greater

Digital technologies have enabled businesses to transform in ways previously unimaginable but also at a pace and scale previously unattainable

In all of that haste there will be inevitable stumbles and some casualties but the relentless nature of it all means a tide of change without and within that is irresistible

That momentum has reached and engulfed Irish organisations as reflected by the sentiment in this survey By embracing the opportunity of digital transformation Irish organisations have shown that they not only understand the prevailing influences but also that they know they must ride the wave of change rather than be driven beneath it

It is heartening indeed to see the levels of adoption in emerging areas such as artificial intelligence machine learning automation and more where these technologies are already delivering value

Furthermore it is encouraging to see that some of the chief inhibitors for implementation of new technologies are by contrast not new at all This is a good thing because being familiar those inhibitors are more easily and comprehensively dispensed with to facilitate true deep and lasting transformation

Though the sentiment around sustainability could be seen as a negative it also reflects how widespread the understanding of the need for sustainable practices are for the future of the industry and of society Through this awareness todayrsquos leaders can be informed and tomorrowrsquos leaders prepared for the challenges of doing better for the benefit of all

There are many positives to be taken from this research Irish organisations are embracing change and thriving as a result It is to be commended that the findings are taken to the widest possible audience to promote the positives allowing all to learn from those who have succeeded through transformation

Paul HearnsEditor (TechPro)amp Head of Content Technology Division (Mediateam)

6

Key findings

85thinsp of organisations across

the island of Ireland are using automated technologies

73thinsp of firms using automation

say it helps employees to focus on business-critical tasks

32thinsp of businesses are currently

implementing artificial intelligence or machine learning projects

24thinsp

of Irelandrsquos technology decision-makers believe that by 2024 artificial

intelligence technologies will be more reliable than humans in

making critical business decisions

The cost of digital skills shortages to the average

Irish enterprise in 2019 was

eurothinsp981439

76thinsp of businesses are losing money

because of the digital skills shortage while 47thinsp say it is

hampering digital transformation

56thinsp

of organisations outsource the management or support of their

digital transformation processes to an external service provider

Top barriers to the implementation of new technologies include

54thinsp Budgetary constraints

36thinsplack of buy-in from senior executives

and board members

The average enterprise expects the total cost of getting

their IT departmentinfrastructure Brexit-ready to be

eurothinsp435949

62thinsp

of technology leaders on the island of Ireland believe their company

should be doing more to be a responsible organisation

7

Embracing changeFrom Belfastrsquos Titanic Quarter to Cork innovation is happening across the island of Ireland as businesses relentlessly look to do things better They are disrupting industries and in many cases lives To do this increasingly they are relying on the latest breakthroughs in technology to entice new customers and hold onto existing ones

The more organisations embrace this digital transformation the more customer expectations rise It is breeding a digital-first customer base that demands simplicity in every transaction and interaction And so enterprises enter a constant cycle of innovation that requires them to continually roll out new customer-focused solutions and make constant improvements to them just as quickly

Just as customers require simplicity so do businesses By automating certain processes they can ensure employees are focused on the solutions that will help them to compete and grow in the digital world Our research found that most Irish organisations (85thinsp) are

now using automated technologies to some degree with 60thinsp of those saying it is helping them to generate revenues

As automationrsquos business potential continues to unfold the opportunities for deployment rise in tandem As a result almost all (94thinsp) of technology leaders now believe it will be making an impact in their organisation in the next three years The greatest effect automation will have in the future say 73thinsp of technology decision-makers is that it will help employees to focus on business-critical tasks The same proportion expects it to speed up their processes ndash a virtue in the perpetual world of innovation Almost two-thirds (64thinsp) meanwhile say it will reduce costs

8

But for most cutting costs doesnrsquot translate into job losses ndash despite fears that the rise of automation will leave many roles redundant In fact 58thinsp of technology leaders say automation hasnrsquot affected their job numbers at all A further 20thinsp say they have created jobs as a result of deploying automated technologies

The promise of automation has ensured that adoption has been quick and widespread But itrsquos not the only way organisations are digitising their processes and solutions in order to thrive in the changing environment Long touted as technologies that would change the world artificial intelligence (AI) and machine learning (ML) are now starting to prove their worth to technology leaders

Whether itrsquos supporting automation projects analysing data or incorporating machines into the workforce almost one-third (32thinsp) are already implementing AI and ML projects while 45thinsp plan to increase their use of AI and ML in the next three years Machines may even be more reliable than humans in making business-critical decisions by 2024 according to 24thinsp of Irelandrsquos IT leaders

The consensus around blockchain is less enthusiastic More than one-third (36thinsp) of technology leaders donrsquot believe it is important to their organisation right now while 14 donrsquot think it will ever be relevant That is despite the latest evaluation from Gartner which predicts that the business impact of blockchain will be transformational across most industries within the next five to 10 years1)

Nevertheless there are firms looking to find out how blockchain can work for them Our survey showed that 22thinsp of businesses across the island of Ireland are already using blockchain or are running a pilot An additional 6thinsp will begin a blockchain project in the next 12 months and 18thinsp plan to investigate its benefits in the next year Worryingly 24thinsp already believe it is important but they donrsquot have the right understanding within their organisation to implement it

While enterprises are in agreement that business transformation will rely heavily on their technological prowess Irelandrsquos technology leaders nevertheless face push-back when it comes to getting project sign-off The biggest impediments to implementing new technologies cited by survey respondents included budgetary constraints (54thinsp) and lack of buy-in from senior executives and board members (36thinsp)

1) Gartner 2019 Hype Cycle for Blockchain Business Shows Blockchain Will Have a Transformational Impact across Industries in Five to 10 Years

9

45

of Irish organisations plan to

increase their use of artificial intelligence and machine learning

in the next three years

20

of enterprises using

automated technologies say it has resulted in

jobs growth

10

Getting the right peopleThe inability to hire the right or enough skilled digital workers is one of the greatest barriers to business transformation in Ireland On a nuclear scale it inhibits innovation But the actual impact of that can be disastrous across all departments of an organisation Our research into the digital skills shortage provides a valuable insight into the critical role technology now plays in businessesrsquo existence today

The dearth in digital talent is felt by almost every organisation operating in Ireland as they find themselves without the in-house skills or knowledge to implement the technologies that will differentiate them from their competitors When taking into account factors such as the cost of upskilling outsourcing recruiting outside the island of Ireland and lost business opportunities we found that the cost of the digital skills shortage to the average Irish enterprise was eurothinsp981439 in 2019 In total some 76thinsp of Irish organisations admit that they are losing money because of the digital skills shortage

But the long-term effects will see those figures increase as enterprise success increasingly becomes intertwined with the success of the IT department Almost half (47thinsp) of those surveyed said the lack of digital talent is hampering their companyrsquos digital transformation while one-third said it has slowed down their speed to market for innovative new products It is not surprising then that 15thinsp of businesses say the digital skills deficit has frozen their revenue growth entirely while 13thinsp say it has halted their international growth

Evidently it is a handicap that organisations canrsquot afford Our research found that enterprises are taking a proactive multi-faceted approach in order to minimise the consequences More than half (52thinsp) are outsourcing some of their IT work while 22thinsp are outsourcing certain functions completely Nearly one-third (30thinsp) are recruiting from outside of Ireland 20thinsp are recruiting more graduates and 19thinsp are increasing their spend on IT training

Despite the evident problems it is creating for enterprises 12thinsp of technology leaders say they donrsquot have a strategy to address the skills shortage leaving themselves in a precarious position as they navigate a fast-moving business landscape

10

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 6: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

6

Key findings

85thinsp of organisations across

the island of Ireland are using automated technologies

73thinsp of firms using automation

say it helps employees to focus on business-critical tasks

32thinsp of businesses are currently

implementing artificial intelligence or machine learning projects

24thinsp

of Irelandrsquos technology decision-makers believe that by 2024 artificial

intelligence technologies will be more reliable than humans in

making critical business decisions

The cost of digital skills shortages to the average

Irish enterprise in 2019 was

eurothinsp981439

76thinsp of businesses are losing money

because of the digital skills shortage while 47thinsp say it is

hampering digital transformation

56thinsp

of organisations outsource the management or support of their

digital transformation processes to an external service provider

Top barriers to the implementation of new technologies include

54thinsp Budgetary constraints

36thinsplack of buy-in from senior executives

and board members

The average enterprise expects the total cost of getting

their IT departmentinfrastructure Brexit-ready to be

eurothinsp435949

62thinsp

of technology leaders on the island of Ireland believe their company

should be doing more to be a responsible organisation

7

Embracing changeFrom Belfastrsquos Titanic Quarter to Cork innovation is happening across the island of Ireland as businesses relentlessly look to do things better They are disrupting industries and in many cases lives To do this increasingly they are relying on the latest breakthroughs in technology to entice new customers and hold onto existing ones

The more organisations embrace this digital transformation the more customer expectations rise It is breeding a digital-first customer base that demands simplicity in every transaction and interaction And so enterprises enter a constant cycle of innovation that requires them to continually roll out new customer-focused solutions and make constant improvements to them just as quickly

Just as customers require simplicity so do businesses By automating certain processes they can ensure employees are focused on the solutions that will help them to compete and grow in the digital world Our research found that most Irish organisations (85thinsp) are

now using automated technologies to some degree with 60thinsp of those saying it is helping them to generate revenues

As automationrsquos business potential continues to unfold the opportunities for deployment rise in tandem As a result almost all (94thinsp) of technology leaders now believe it will be making an impact in their organisation in the next three years The greatest effect automation will have in the future say 73thinsp of technology decision-makers is that it will help employees to focus on business-critical tasks The same proportion expects it to speed up their processes ndash a virtue in the perpetual world of innovation Almost two-thirds (64thinsp) meanwhile say it will reduce costs

8

But for most cutting costs doesnrsquot translate into job losses ndash despite fears that the rise of automation will leave many roles redundant In fact 58thinsp of technology leaders say automation hasnrsquot affected their job numbers at all A further 20thinsp say they have created jobs as a result of deploying automated technologies

The promise of automation has ensured that adoption has been quick and widespread But itrsquos not the only way organisations are digitising their processes and solutions in order to thrive in the changing environment Long touted as technologies that would change the world artificial intelligence (AI) and machine learning (ML) are now starting to prove their worth to technology leaders

Whether itrsquos supporting automation projects analysing data or incorporating machines into the workforce almost one-third (32thinsp) are already implementing AI and ML projects while 45thinsp plan to increase their use of AI and ML in the next three years Machines may even be more reliable than humans in making business-critical decisions by 2024 according to 24thinsp of Irelandrsquos IT leaders

The consensus around blockchain is less enthusiastic More than one-third (36thinsp) of technology leaders donrsquot believe it is important to their organisation right now while 14 donrsquot think it will ever be relevant That is despite the latest evaluation from Gartner which predicts that the business impact of blockchain will be transformational across most industries within the next five to 10 years1)

Nevertheless there are firms looking to find out how blockchain can work for them Our survey showed that 22thinsp of businesses across the island of Ireland are already using blockchain or are running a pilot An additional 6thinsp will begin a blockchain project in the next 12 months and 18thinsp plan to investigate its benefits in the next year Worryingly 24thinsp already believe it is important but they donrsquot have the right understanding within their organisation to implement it

While enterprises are in agreement that business transformation will rely heavily on their technological prowess Irelandrsquos technology leaders nevertheless face push-back when it comes to getting project sign-off The biggest impediments to implementing new technologies cited by survey respondents included budgetary constraints (54thinsp) and lack of buy-in from senior executives and board members (36thinsp)

1) Gartner 2019 Hype Cycle for Blockchain Business Shows Blockchain Will Have a Transformational Impact across Industries in Five to 10 Years

9

45

of Irish organisations plan to

increase their use of artificial intelligence and machine learning

in the next three years

20

of enterprises using

automated technologies say it has resulted in

jobs growth

10

Getting the right peopleThe inability to hire the right or enough skilled digital workers is one of the greatest barriers to business transformation in Ireland On a nuclear scale it inhibits innovation But the actual impact of that can be disastrous across all departments of an organisation Our research into the digital skills shortage provides a valuable insight into the critical role technology now plays in businessesrsquo existence today

The dearth in digital talent is felt by almost every organisation operating in Ireland as they find themselves without the in-house skills or knowledge to implement the technologies that will differentiate them from their competitors When taking into account factors such as the cost of upskilling outsourcing recruiting outside the island of Ireland and lost business opportunities we found that the cost of the digital skills shortage to the average Irish enterprise was eurothinsp981439 in 2019 In total some 76thinsp of Irish organisations admit that they are losing money because of the digital skills shortage

But the long-term effects will see those figures increase as enterprise success increasingly becomes intertwined with the success of the IT department Almost half (47thinsp) of those surveyed said the lack of digital talent is hampering their companyrsquos digital transformation while one-third said it has slowed down their speed to market for innovative new products It is not surprising then that 15thinsp of businesses say the digital skills deficit has frozen their revenue growth entirely while 13thinsp say it has halted their international growth

Evidently it is a handicap that organisations canrsquot afford Our research found that enterprises are taking a proactive multi-faceted approach in order to minimise the consequences More than half (52thinsp) are outsourcing some of their IT work while 22thinsp are outsourcing certain functions completely Nearly one-third (30thinsp) are recruiting from outside of Ireland 20thinsp are recruiting more graduates and 19thinsp are increasing their spend on IT training

Despite the evident problems it is creating for enterprises 12thinsp of technology leaders say they donrsquot have a strategy to address the skills shortage leaving themselves in a precarious position as they navigate a fast-moving business landscape

10

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 7: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

7

Embracing changeFrom Belfastrsquos Titanic Quarter to Cork innovation is happening across the island of Ireland as businesses relentlessly look to do things better They are disrupting industries and in many cases lives To do this increasingly they are relying on the latest breakthroughs in technology to entice new customers and hold onto existing ones

The more organisations embrace this digital transformation the more customer expectations rise It is breeding a digital-first customer base that demands simplicity in every transaction and interaction And so enterprises enter a constant cycle of innovation that requires them to continually roll out new customer-focused solutions and make constant improvements to them just as quickly

Just as customers require simplicity so do businesses By automating certain processes they can ensure employees are focused on the solutions that will help them to compete and grow in the digital world Our research found that most Irish organisations (85thinsp) are

now using automated technologies to some degree with 60thinsp of those saying it is helping them to generate revenues

As automationrsquos business potential continues to unfold the opportunities for deployment rise in tandem As a result almost all (94thinsp) of technology leaders now believe it will be making an impact in their organisation in the next three years The greatest effect automation will have in the future say 73thinsp of technology decision-makers is that it will help employees to focus on business-critical tasks The same proportion expects it to speed up their processes ndash a virtue in the perpetual world of innovation Almost two-thirds (64thinsp) meanwhile say it will reduce costs

8

But for most cutting costs doesnrsquot translate into job losses ndash despite fears that the rise of automation will leave many roles redundant In fact 58thinsp of technology leaders say automation hasnrsquot affected their job numbers at all A further 20thinsp say they have created jobs as a result of deploying automated technologies

The promise of automation has ensured that adoption has been quick and widespread But itrsquos not the only way organisations are digitising their processes and solutions in order to thrive in the changing environment Long touted as technologies that would change the world artificial intelligence (AI) and machine learning (ML) are now starting to prove their worth to technology leaders

Whether itrsquos supporting automation projects analysing data or incorporating machines into the workforce almost one-third (32thinsp) are already implementing AI and ML projects while 45thinsp plan to increase their use of AI and ML in the next three years Machines may even be more reliable than humans in making business-critical decisions by 2024 according to 24thinsp of Irelandrsquos IT leaders

The consensus around blockchain is less enthusiastic More than one-third (36thinsp) of technology leaders donrsquot believe it is important to their organisation right now while 14 donrsquot think it will ever be relevant That is despite the latest evaluation from Gartner which predicts that the business impact of blockchain will be transformational across most industries within the next five to 10 years1)

Nevertheless there are firms looking to find out how blockchain can work for them Our survey showed that 22thinsp of businesses across the island of Ireland are already using blockchain or are running a pilot An additional 6thinsp will begin a blockchain project in the next 12 months and 18thinsp plan to investigate its benefits in the next year Worryingly 24thinsp already believe it is important but they donrsquot have the right understanding within their organisation to implement it

While enterprises are in agreement that business transformation will rely heavily on their technological prowess Irelandrsquos technology leaders nevertheless face push-back when it comes to getting project sign-off The biggest impediments to implementing new technologies cited by survey respondents included budgetary constraints (54thinsp) and lack of buy-in from senior executives and board members (36thinsp)

1) Gartner 2019 Hype Cycle for Blockchain Business Shows Blockchain Will Have a Transformational Impact across Industries in Five to 10 Years

9

45

of Irish organisations plan to

increase their use of artificial intelligence and machine learning

in the next three years

20

of enterprises using

automated technologies say it has resulted in

jobs growth

10

Getting the right peopleThe inability to hire the right or enough skilled digital workers is one of the greatest barriers to business transformation in Ireland On a nuclear scale it inhibits innovation But the actual impact of that can be disastrous across all departments of an organisation Our research into the digital skills shortage provides a valuable insight into the critical role technology now plays in businessesrsquo existence today

The dearth in digital talent is felt by almost every organisation operating in Ireland as they find themselves without the in-house skills or knowledge to implement the technologies that will differentiate them from their competitors When taking into account factors such as the cost of upskilling outsourcing recruiting outside the island of Ireland and lost business opportunities we found that the cost of the digital skills shortage to the average Irish enterprise was eurothinsp981439 in 2019 In total some 76thinsp of Irish organisations admit that they are losing money because of the digital skills shortage

But the long-term effects will see those figures increase as enterprise success increasingly becomes intertwined with the success of the IT department Almost half (47thinsp) of those surveyed said the lack of digital talent is hampering their companyrsquos digital transformation while one-third said it has slowed down their speed to market for innovative new products It is not surprising then that 15thinsp of businesses say the digital skills deficit has frozen their revenue growth entirely while 13thinsp say it has halted their international growth

Evidently it is a handicap that organisations canrsquot afford Our research found that enterprises are taking a proactive multi-faceted approach in order to minimise the consequences More than half (52thinsp) are outsourcing some of their IT work while 22thinsp are outsourcing certain functions completely Nearly one-third (30thinsp) are recruiting from outside of Ireland 20thinsp are recruiting more graduates and 19thinsp are increasing their spend on IT training

Despite the evident problems it is creating for enterprises 12thinsp of technology leaders say they donrsquot have a strategy to address the skills shortage leaving themselves in a precarious position as they navigate a fast-moving business landscape

10

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 8: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

8

But for most cutting costs doesnrsquot translate into job losses ndash despite fears that the rise of automation will leave many roles redundant In fact 58thinsp of technology leaders say automation hasnrsquot affected their job numbers at all A further 20thinsp say they have created jobs as a result of deploying automated technologies

The promise of automation has ensured that adoption has been quick and widespread But itrsquos not the only way organisations are digitising their processes and solutions in order to thrive in the changing environment Long touted as technologies that would change the world artificial intelligence (AI) and machine learning (ML) are now starting to prove their worth to technology leaders

Whether itrsquos supporting automation projects analysing data or incorporating machines into the workforce almost one-third (32thinsp) are already implementing AI and ML projects while 45thinsp plan to increase their use of AI and ML in the next three years Machines may even be more reliable than humans in making business-critical decisions by 2024 according to 24thinsp of Irelandrsquos IT leaders

The consensus around blockchain is less enthusiastic More than one-third (36thinsp) of technology leaders donrsquot believe it is important to their organisation right now while 14 donrsquot think it will ever be relevant That is despite the latest evaluation from Gartner which predicts that the business impact of blockchain will be transformational across most industries within the next five to 10 years1)

Nevertheless there are firms looking to find out how blockchain can work for them Our survey showed that 22thinsp of businesses across the island of Ireland are already using blockchain or are running a pilot An additional 6thinsp will begin a blockchain project in the next 12 months and 18thinsp plan to investigate its benefits in the next year Worryingly 24thinsp already believe it is important but they donrsquot have the right understanding within their organisation to implement it

While enterprises are in agreement that business transformation will rely heavily on their technological prowess Irelandrsquos technology leaders nevertheless face push-back when it comes to getting project sign-off The biggest impediments to implementing new technologies cited by survey respondents included budgetary constraints (54thinsp) and lack of buy-in from senior executives and board members (36thinsp)

1) Gartner 2019 Hype Cycle for Blockchain Business Shows Blockchain Will Have a Transformational Impact across Industries in Five to 10 Years

9

45

of Irish organisations plan to

increase their use of artificial intelligence and machine learning

in the next three years

20

of enterprises using

automated technologies say it has resulted in

jobs growth

10

Getting the right peopleThe inability to hire the right or enough skilled digital workers is one of the greatest barriers to business transformation in Ireland On a nuclear scale it inhibits innovation But the actual impact of that can be disastrous across all departments of an organisation Our research into the digital skills shortage provides a valuable insight into the critical role technology now plays in businessesrsquo existence today

The dearth in digital talent is felt by almost every organisation operating in Ireland as they find themselves without the in-house skills or knowledge to implement the technologies that will differentiate them from their competitors When taking into account factors such as the cost of upskilling outsourcing recruiting outside the island of Ireland and lost business opportunities we found that the cost of the digital skills shortage to the average Irish enterprise was eurothinsp981439 in 2019 In total some 76thinsp of Irish organisations admit that they are losing money because of the digital skills shortage

But the long-term effects will see those figures increase as enterprise success increasingly becomes intertwined with the success of the IT department Almost half (47thinsp) of those surveyed said the lack of digital talent is hampering their companyrsquos digital transformation while one-third said it has slowed down their speed to market for innovative new products It is not surprising then that 15thinsp of businesses say the digital skills deficit has frozen their revenue growth entirely while 13thinsp say it has halted their international growth

Evidently it is a handicap that organisations canrsquot afford Our research found that enterprises are taking a proactive multi-faceted approach in order to minimise the consequences More than half (52thinsp) are outsourcing some of their IT work while 22thinsp are outsourcing certain functions completely Nearly one-third (30thinsp) are recruiting from outside of Ireland 20thinsp are recruiting more graduates and 19thinsp are increasing their spend on IT training

Despite the evident problems it is creating for enterprises 12thinsp of technology leaders say they donrsquot have a strategy to address the skills shortage leaving themselves in a precarious position as they navigate a fast-moving business landscape

10

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 9: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

9

45

of Irish organisations plan to

increase their use of artificial intelligence and machine learning

in the next three years

20

of enterprises using

automated technologies say it has resulted in

jobs growth

10

Getting the right peopleThe inability to hire the right or enough skilled digital workers is one of the greatest barriers to business transformation in Ireland On a nuclear scale it inhibits innovation But the actual impact of that can be disastrous across all departments of an organisation Our research into the digital skills shortage provides a valuable insight into the critical role technology now plays in businessesrsquo existence today

The dearth in digital talent is felt by almost every organisation operating in Ireland as they find themselves without the in-house skills or knowledge to implement the technologies that will differentiate them from their competitors When taking into account factors such as the cost of upskilling outsourcing recruiting outside the island of Ireland and lost business opportunities we found that the cost of the digital skills shortage to the average Irish enterprise was eurothinsp981439 in 2019 In total some 76thinsp of Irish organisations admit that they are losing money because of the digital skills shortage

But the long-term effects will see those figures increase as enterprise success increasingly becomes intertwined with the success of the IT department Almost half (47thinsp) of those surveyed said the lack of digital talent is hampering their companyrsquos digital transformation while one-third said it has slowed down their speed to market for innovative new products It is not surprising then that 15thinsp of businesses say the digital skills deficit has frozen their revenue growth entirely while 13thinsp say it has halted their international growth

Evidently it is a handicap that organisations canrsquot afford Our research found that enterprises are taking a proactive multi-faceted approach in order to minimise the consequences More than half (52thinsp) are outsourcing some of their IT work while 22thinsp are outsourcing certain functions completely Nearly one-third (30thinsp) are recruiting from outside of Ireland 20thinsp are recruiting more graduates and 19thinsp are increasing their spend on IT training

Despite the evident problems it is creating for enterprises 12thinsp of technology leaders say they donrsquot have a strategy to address the skills shortage leaving themselves in a precarious position as they navigate a fast-moving business landscape

10

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 10: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

10

Getting the right peopleThe inability to hire the right or enough skilled digital workers is one of the greatest barriers to business transformation in Ireland On a nuclear scale it inhibits innovation But the actual impact of that can be disastrous across all departments of an organisation Our research into the digital skills shortage provides a valuable insight into the critical role technology now plays in businessesrsquo existence today

The dearth in digital talent is felt by almost every organisation operating in Ireland as they find themselves without the in-house skills or knowledge to implement the technologies that will differentiate them from their competitors When taking into account factors such as the cost of upskilling outsourcing recruiting outside the island of Ireland and lost business opportunities we found that the cost of the digital skills shortage to the average Irish enterprise was eurothinsp981439 in 2019 In total some 76thinsp of Irish organisations admit that they are losing money because of the digital skills shortage

But the long-term effects will see those figures increase as enterprise success increasingly becomes intertwined with the success of the IT department Almost half (47thinsp) of those surveyed said the lack of digital talent is hampering their companyrsquos digital transformation while one-third said it has slowed down their speed to market for innovative new products It is not surprising then that 15thinsp of businesses say the digital skills deficit has frozen their revenue growth entirely while 13thinsp say it has halted their international growth

Evidently it is a handicap that organisations canrsquot afford Our research found that enterprises are taking a proactive multi-faceted approach in order to minimise the consequences More than half (52thinsp) are outsourcing some of their IT work while 22thinsp are outsourcing certain functions completely Nearly one-third (30thinsp) are recruiting from outside of Ireland 20thinsp are recruiting more graduates and 19thinsp are increasing their spend on IT training

Despite the evident problems it is creating for enterprises 12thinsp of technology leaders say they donrsquot have a strategy to address the skills shortage leaving themselves in a precarious position as they navigate a fast-moving business landscape

10

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 11: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

11

47

of technology leaders say their digital transformation is being

held back by IT skills shortages

52

of organisations are addressing the skills shortages by

outsourcing some of their IT work

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 12: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

12

Looking to the futureAs they look to disrupt the future our research found that Irelandrsquos IT leaders are positive about what it holds and the islandrsquos position as a world leader in technology That is despite the persistent shortage in digital talent and an uncertain economic landscape as Brexit looms

More than one-third (39thinsp) are confident that by 2024 Ireland will be keeping pace with other European countries when it comes to smart city solutions ndash something that is already holding true in the capital and elsewhere Smart Dublin2) reports that there are currently in excess of 100 smart projects underway in the city while smart foundations are also being laid in Belfast Limerick Cork Galway Waterford and across other regions

Playing a major role in the rollout of smart city projects will be 5G ndash heralded as a transformative technology that will support and drive greater faster innovation It will facilitate the explosion of data and bandwidth required for the digital era accelerate the emergence of the Internet of Everything and support the transformation of all industries from farming to healthcare With some telecommunications operators in Ireland already offering access to their 5G networks 55thinsp of technology leaders expect it to be fully rolled out within the next five years

While technology advances the rise of the IT department means that CIOs must simultaneously navigate regional uncertainty and carve out strategies that ensure politics doesnrsquot impede digital progression As the UK prepares to leave the EU firms on both sides of the border are left wondering what the economic impact will be Our research found that most Irish businesses are preparing contingency plans that include a significant spend on IT More than two-thirds (68thinsp) of organisations are making investments in getting their IT department or infrastructure Brexit-ready ndash totalling eurothinsp435949 for the average enterprise

2) httpssmartdublinie

12

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 13: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

13

Being responsibleConstant innovation requires power As business transformation gathers pace organisationsrsquo environmental footprints expand Concurrently customers are more environmentally aware than ever before Many have standards they must conform to which means only working with companies who can demonstrate ndash right down to their supply chains ndash that they share their corporate sustainability goals

Whether driven by their own corporate agendas or those of their customers businesses everywhere are carrying out audits of their processes to ensure they are minimising their toll on the environment And Expleo found that they are investing heavily in changing their ways

Our research found that the average enterprise will spend eurothinsp714784 on making their IT infrastructure more environmentally sustainable and green in the next year ndash a substantial increase of 24thinsp on the previous year

Still there is more to do and the majority of the islandrsquos technology decision-makers (62thinsp) donrsquot believe their company is doing enough to be a responsible organisation

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 14: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

14

SummaryOur research shows that organisations across Ireland are transforming at speed There is no business as usual enterprises are continually looking to do things better and differently

Central to that is the rise of the IT department Businesses recognise that without the latest technological advancements they will not succeed in the digital era But with the IT departmentrsquos promotion come a new set of hurdles Board members must be won over and skilled workers sourced All the while international regional uncertainty plays in the background

Expleorsquos research into business transformation on the island of Ireland shows that enterprises are tackling the challenges they face with a multi-pronged approach They share a vision for the future and are investing in it by coming up with new ways to mount the hurdles that lie in wait

But are their investments well-placed The fact that 78thinsp of organisations in Ireland are losing money to skills shortages suggests that the investments being made exceed the revenue streams they are supposed to create And as they prepare for the widespread adoption of cutting-edge technologies that will propel their businesses into the future technology leaders still face an uphill battle getting budgetary sign-off and board buy-in

Business transformation is not optional and innovation cannot stop Irelandrsquos business leaders must carefully plot the road ahead ndash with technology at its centre ndash to ensure a smooth and more prosperous journey for everyone

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 15: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

15

RecommendationsGo agile

The only way enterprises will be able to manage the innovation required to compete in the digital era is to become agile organisations ndash from the inside out

Business agility allows organisations to adapt quickly to market evolution by enabling relentless rapid responses to ever-changing consumer demands Automation must be leveraged to achieve this

Our research shows that businesses who automate certain processes find that it allows employees to focus on more business critical tasks As a result departments can focus on the solutions that will propel the organisation forward instead of getting tangled up in repetitive time-consuming processes that impede innovation

But without the right organisational structure the impact of automation will be tempered Enterprises must build an agile operating model that begins at the team level and spans people culture and workstyles This will ensure organisations breed entrepreneurship at every level and encourage the bold thinking required to thrive in the digital world

To manage the investment required to achieve business agility we recommend a metered funding approach in other words investing in products and services gradually and only as they demonstrate value to the organisation

Take a look at the board

If you are a business leader wondering why your competitors are racing ahead itrsquos possible that part of the problem lies at the highest levels of your organisation

Expleorsquos research shows that one of the greatest barriers to digital transformation is buy-in from senior executives and board members Without their seal of approval digital budgets donrsquot get sign-off and new ideas are dismissed

This is damaging for business and for the morale of those charged with driving change It can also exacerbate any skills shortages felt within an organisation as there isnrsquot enough value placed in the development of the IT department

Todayrsquos boards and senior management teams must reflect the current business landscape That means ensuring the digital era is strongly represented with the appointment of more chief digital officers and chief innovation officers to the board who will work with ndash not against ndash the technology department in putting inno- vation on the agenda

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 16: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

16

Culture is key

Even the best-laid business strategy will fail if a company neglects its culture

As Ireland approaches full employment enterprises are competing with each other to attract and retain the best talent And when it comes to digital talent the competition is even greater

It is important that organisations invest in their culture by focusing on three areas the devolution of decision-making diversity and inclusion and sustainability

The first of these requires business leaders to relinquish some of their decision-making powers and instead encourage a culture of lsquofail fast fail oftenrsquo by empowering individuals to make decisions themselves This means mistakes will be made early on in the innovation stages and will encourage more out-of-the-box thinking

As with diversity on the board organisations will also benefit from teams that reflect the diversity of society allowing for a varying exchange of ideas on a daily basis The momentum of this can be built upon by giving individuals and teams ownership of their new ideas ensuring they remain inspired and part of the companyrsquos transformation

Todayrsquos socially-conscious workforce also takes inspiration from the sustainability message of their employer As with customers businesses must be able to demonstrate to current and prospective employees that they are a responsible organisation With 62thinsp of our survey respondents saying their organisation should be doing more to be a responsible enterprise it is something that every business leader should be looking at and speaking to their employees about

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 17: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

17

Quality Assurance

Businesses are in a global technology race to deliver faster better and more technical solutions to meet customer demands

As customer expectations rise enterprises must focus on continuous quality solutions and move away from the traditional approach of assessing quality as a secondary activity or later in the life cycle of a new product

An independent quality assurance specialist will mitigate the risk associated with launching a new digital product and enable a smoother path to market By ensuring customers are positively engaged with their platforms from the outset businesses can build all-important customer loyalty

Address regulatory concerns from the outset

All enterprises are bound by varying degrees of regulation compliance laws and codes of practice

Ignoring these requirements can often hamper transformation programmes bringing innovative ideas back to the drawing board Businesses must make sure they are aware of their regulatory requirements and engage with the necessary expertise to ensure paperwork doesnrsquot hold up innovation

Lean on the experts

For many business leaders ndash and their employees ndash the digital era reveals untrodden ground At the same time the market demands that they become game-changers virtually overnight This can result in a rush to innovate involving large investments that donrsquot always pay off

Being on the right path from the start saves costs and time Organisations should consider collaborating with hands-on experts with experience in business transformation They can conduct an internal health check to find out what resources are available what changes are required and how technology can enhance operations

By engaging with an external partner enterprises can maximise return on investment and value early on in their digital journey The success of these initial projects will help to pave the way for the level of perpetual innovation required to be a market leader

17

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 18: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

18

Afterword

Compare the island we live in now to the one of 10 years ago and it is unrecognisable We have gone from being some of the worst-hit economies in the global recession to a centre for investment and invention

Our ability to attract foreign direct investment has helped of course However we should not underrate the role of Irelandrsquos business and technology leaders in driving this transformation We are an island of entrepreneurs building our economy by always seeking to do things better Capitalising on our long history in software and technology services Irelandrsquos enterprises have ensured that we continually punch above our weight by driving game-changing innovations that transform industries at home and abroad

As the fourth industrial revolution gathers pace now is our chance to thrill customers and businesses on a global scale And while hurdles persevere they are not insurmountable From remote workforces to automation today it seems that there is a digital solution to everything Itrsquos something businesses here donrsquot need to be told this is the era that they have created

Phil CoddManaging Director Expleo Ireland

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 19: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging

19

Talk to usAbout Expleo

Expleo is a trusted partner for end-to-end integrated engineering quality services and management consulting for digital transformation We help businesses harness unrelenting technological change to successfully deliver innovations that will help them gain a competitive advantage and improve the everyday lives of people around the globe Expleo operate in 25 countries in industries including aeronautics automotive banking and financial services space and defence insurance public sector and retail and logistics By working with customers from design through development and implementation stage Expleo can ensure secure and scalable technology solutions for disruptive companies In Ireland Expleo is the largest quality assurance specialist With a 500-strong skilled workforce and offices in Dublin and Belfast wersquore proud of our experience and expertise in helping clients to digitally transform their businesses Our consultants identify and mitigate business risk in technology-led transformations using standardised methodology industrialised automation solutions global delivery and deep domain knowledge across multiple industries

Wherever you are on your business transformation journey Expleo is here to help Get in touch with us today to organise a free consultation with one of our experts Letrsquos change the game ndash together

DUBLIN

30 North Wall QuayDublin 1

+353 16709916

BELFAST

The Concourse CatalystQueenrsquos Rd Queenrsquos IslandBelfast BT3 9DT

+ 44 2890 409 901

Expleo Groupexpleogroupcominfoexpleogroupcom ExpleoGroup

Page 20: Expleo Business Transformation Index 2020 · investments in overcoming the barriers that conspire against their success. They are entering, and creating, ... adoption in emerging