Less than one in five large ANZ organisations are digitally mature enough to build disruptive business models at scale according to a new study. It’s more proof, as if any where needed, that digital transformation is a hard row to hoe. It is particularly difficult if you are a large Australian or New Zealand organisation, according to research from Infosys released today.
While few large businesses can implement disruptive models at scale, ANZ organisations (17 per cent) trail their global counterparts (22 per cent), according to the research, which found agility, digital culture and customer experience are the key drivers of digital transformation in large ANZ organisations.
The report, Infosys Digital Acceleration Study: Infosys Australia and New Zealand Report, polled 175 senior business decision makers from the region’s biggest companies, each with a revenue of over $1 billion, to better understand where Australia and New Zealand’s largest enterprises are in their digital transformation journey and what they require to accelerate that journey.
The survey of Senior IT decision-makers reveals that enterprise leaders across sectors are at varying stages of digital agility, while facing consistent barriers and opportunities to building disruptive business models at scale.
The report identifies three clusters based on digital maturity:
• Visionaries – Transform to meet business objectives through new business models and an innovative culture. They understand digital is central to the success of future endeavours
• Explorers – Committed to improving their customer’s experiences. Identify with digital programs that enhance customer experience, or increase brand value through differentiation
• Watchers – Largely focused on efficiency-driven outcomes of digital adoption
Approximately 17 per cent of AU and NZ respondents are identified as visionaries, in contrast with 22 per cent of their global counterparts, indicating that fewer AU and NZ leaders have identified digital transformation as a central part of their business strategy in comparison to global peers, according to Infosys.
The majority of Australian and New Zealand businesses surveyed (55 per cent) fall into the Explorers category, with a focus on digital transformation for the differentiation value it gives them in either customer experience or an uplift in brand value. This is higher in comparison to global peers of whom 50 per cent are categorised as Explorers.
Additionally, 28 per cent of AU and NZ respondents are identified as Watchers which is on par with global research. Watchers have partially deployed digital initiatives but are focused on efficiency-driven outcomes.
Common to all groups of business leaders is an understanding that business agility (85 per cent), enhancing digital culture (82 per cent), and delivering seamless customer experience (78 per cent) are key organisational drivers to enable them to build disruptive business models at scale. Visionaries particularly recognise that there is a constant need to reinvent themselves to stay relevant to their customers.
“What our research uncovers is that a large number of organisations are encumbered by rigid technology, the digital skills gap and more importantly a culture gap that stifles innovation, which is key to achieving a digitisation vision,” said Andrew Groth, Senior Vice President and Regional Head Australia and New Zealand, Infosys.
“This is ultimately resulting in businesses being unable to create the customer experience and competitive advantage at speed, eventually losing the mindshare with their customers.”
Groth said ANZ businesses have a “massive opportunity” to apply some of the learnings from more digitally mature global peers.