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The State of Digital Transformation in Australia 2018
The State of Digital Transformation in Australia 2018
The State of Digital Transformation in Australia 2018
of Digital
Transformation
in Australia
Contents
Comment
from Contino
Andrew Brydon, VP of Consulting, APAC
Contino’s first report on The State of this climate. As a result , technology teams
Digital Transformation in Australia need to quickly adapt their organisational
investigates how organisations are operations to meet the demands of the
approaching their 2018 digital strategies, in digital era and the app economy. And,
terms of people, process and technology. in order to do this, processes need to be
streamlined and automated to support a
We launched the research project to new kind of customer experience.
uncover what digital transformation
actually means to Australian technology However, this gigantic task cannot be
departments, together with the biggest completed overnight, and companies that
challenges and opportunities teams rush to digitally transform their entire
currently face. operations will fail en masse. This study
underscores just this point, showing
During my decade-long career in the IT teams are already stretched as they
Australian technology sector I have attempt to deal with multiple competing
witnessed new business models emerging priorities. To avoid failure, the answer
in ways that, at first glance, may seem to is not to undertake massive digital
be random. The traditional definition of transformations, but instead start with
an organisation – the notion of mobilising smaller digital transformation projects
a network of human resources and that will allow organisations to embed new
capabilities to pull in the same direction – ways of working which can be rolled out
is disappearing as companies are forced to over time – without turning the department
adapt to the digital world and employees to and its already full to-do-list upside down.
new ways of working.
I hope you will find the insights of this
The digital revolution has changed the report useful and inspirational in the
ways in which people interact with continued work of digitising your business.
organisations and vice versa. Therefore,
it has dramatically impacted how people If you have any further questions, drop me
become prospects and make purchase an email: andrew.brydon@contino.io
decisions. Organisations need to radically
change if they are to stay competitive in
Research: The State of Digital Transformation in Australia 5
Overview
Top five
findings
Improving customer experience and
engagement is the main objective for the
majority of organisations’ 2018 digital strategies.
Process
In 35% of cases the
CTO is the person
responsible for an
organisation’s digital
vision
Research: The State of Digital Transformation in Australia 9
‘Digital transformation’ is a concept that Despite the fact that global organisations,
has been discussed at work desks and from small start-ups to massive
meeting rooms, thrown round in the enterprises spanning all industries,
media and unravelled in boardrooms. But, acknowledge the importance of keeping
what does this phrase actually mean for pace with digital transformation, many are
Australian technology departments? struggling to translate this into action.
According to our respondents, However, this report will show that 2018
must be the year of action. Australian
Digital transformation means businesses must begin to digitally disrupt,
delivering value to the customer or be disrupted.
more efficiently and effectively
through constant innovation.
This can be done through automating
previously manual processes to accelerate
business actions and eliminate human
error.
What is DevOps?
DevOps is a set of best practices that enable substantially faster, more
efficient and more agile delivery of high quality software.
Obstacles and
opportunities
The challenges organisations need to
conquer to make their digital vision a reality
Our survey reveals that the main (16.81 per cent). However, surprisingly,
group driving the digital strategy of an ‘ensuring greater financial gains’ and
organisation is the leadership team, ‘improving business decisions’ were the
namely the CTO in 35.4 per cent of cases, least popular objectives, selected by 2.65
followed by the CIO (according to 27.43 per per cent and zero per cent respectively.
of respondents) and the CIO (highlighted Perhaps this finding can be explained by
by 19.47 per cent). Only in 18.42 per cent the fact that by focusing on customer
of cases it is the employees driving digital centricity – and always putting the
forward, followed by customers (selected customer first – the result is better
by 16.66 per cent of respondents). Yet, to decisions being made and ultimately
make any transformation projects truly greater financial success.
successful, all members of an organisation
– from the top down, and bottom up –
need to be bought into the businesses
2018 digital strategy. However, to reach these goals, tech teams
need to conquer a collection of challenges.
When asked to name the biggest barrier
to digital transformation, 34.21 per cent of
The main objective of nearly half (47.79 per respondents said it was down to ‘too many
cent) of companies’ 2018 digital strategies competing priorities,’ followed by ‘lack of
is to ‘improve customer experience and organisational agility’ (chosen by 21.05 per
engagement.’ The next target on the cent). Further down the list was ‘lack of
agenda is to ‘increase efficiency’ (selected overall strategy’ (13.16 per cent) and ‘lack
by 18.58 per cent) and ‘improve innovation’ of technical skills’ (10.53 per cent).
Chief Technology Officer Chief Executive Officer Chief Digital Officer or Head of Digital Chief Strategy Officer
35.40% 27.43%
19.47% 4.43%
Leadership team
Employees Customers Board External consultants Other
54.39% 18.42% 16.66% 4.39% 3.51% 2.63%
Research: The State of Digital Transformation in Australia Process 12
34.21% 21.05%
Lack of
Too many 13.16% organisation
competing
priorities
Lack of 7.89% agility
overall
Lack of 4.39% 10.53%
strategy
technical Lack of Lack of budget
8.77%
skills management Other
support
47.79%
Improve customer
experience and
engagement 18.59%
Increase
16.81%
efficiency Improve 12.39%
innovation Transform 2.65%
0% the business Ensure bigger
Improve financial 1.77%
business returns
decisions Other
Research: The State of Digital Transformation in Australia 13
People
In 90% of cases
digital transformation
projects will mean
upskilling employees
Research: The State of Digital Transformation in Australia 14
Getting everyone
on board
Digital transformation needs buy-in
from the entire organisation, not just the
leadership team
Q: Does your company plan to restructure Q: Do you believe digital transformation will
to support upcoming digital transformation require upskilling staff?
projects?
52.73%
30%
11.82% 5.45%
0%
37.27% 36.36%
22.73%
2.73% 0.91%
Attracting and
retaining talent
Businesses need to ensure they hire and
retain the very best IT talent
36.36%
28.18% Local talent
Upskilling
current staff 23.64%
Overseas talent
6.36%
Apprenticenships and
collaborations with 5.46%
universities
Other
19.09%
Yes
56.36%
No
24.55%
3.5 /5
Yes No I don’t know
67.86 18.75 13.39
% % %
The leadership team are the driving force behind digital strategies
Leadership team
54.39%
Employees
ees Cu
ustomers Board External consultants Other
18.42%
% 16.66
16.66% 4.39% 3.51% 2.63%
Improve customer
experience and 1
engagement 2 3
Increase
efficiency Improve
innovation
Transform
the business
1 day
11.21% 24.31% 25.23% 28.97% 10.28% or less
83.02%
of companies use public Yes No
70.75%
Azure Other Google Cloud Platform
cloud to support their
digital transformation 83.02 16.98 15.09% 8.49% 5.67%
efforts % %
3.5
D A
@continoHQ
G
B I
1 2 3 4 5
Research: The State of Digital Transformation in Australia 20
Technology
Just over 10.28% of
companies can take a
new product to market
in three months or less
Research: The State of Digital Transformation in Australia 21
Practical processes
The delivery processes underpinning
technology departments
Delving into current IT delivery processes, as one of the biggest barriers to digital
60.75 per cent of respondents described transformation in 2018. This calls into
their delivery methodology as ‘agile,’ question whether the agile methodology
extensively overshadowing ‘waterfall,’ results in an overall agile business. Instead,
‘wagile’ and ‘lean’ practices. it is critical that organisations focus on all
12 core principles of the Agile Manifesto,
This is an interesting finding, as although DevOps practices as well as embedding
the majority of respondents described culture change.
their practices as agile, agility was named
1. The highest priority is to satisfy the customer through early and continuous delivery of
valuable software.
2. Welcome changing requirements, even late in development. Agile processes harness change
for the customer’s competitive advantage.
3. Deliver working software frequently, from a couple of weeks to a couple of months, with a
preference to the shorter timescale.
4. Business people and developers must work together daily throughout the project.
5. Build projects around motivated individuals. Give them the environment and support they need
and trust them to get the job done.
6. The most efficient and effective method of conveying information to and within a development
team is face-to-face conversation.
8. Agile processes promote sustainable development. The sponsors, developers, and users should
be able to indefinitely maintain a constant pace.
10. Simplicity – the art of maximising the amount of work not done – is essential.
11. The best architectures, requirements, and designs emerge from self-organising teams.
12. At regular intervals, the team reflects on how to become more effective, tuning and adjusting
its behaviour accordingly.
Research: The State of Digital Transformation in Australia Technology 22
Meanwhile, impressively, over 62 per cent that containers have been mainstream
of respondents believe that the platforms for some time now, whereas serverless
currently within their organisation are able adoption is up and coming with appetite
to support 2018 digital transformation growing for implementing applications
projects, while 29.25 per cent disagreed. using microservices.
Agile Both
60.75% 42.86%
Wagile Containers
24.30% 32.38%
Lean Serverless
7.48% 12.38%
Waterfall None
6.54%
12.38%
Other
Yes No I don’t know
Up in the cloud
Are enough IT teams embracing the cloud?
The cloud removes key barriers to businesses to rapidly test and roll out new
innovation and ongoing maintenance, creations far quicker than using on site
allowing teams to update infrastructure data centre technologies. It also offers
quickly as well as adopt new technologies the opportunity to re-architect these
when they become available. Therefore, it applications to use cloud services in the
is encouraging that just over 83 per cent of most effective manner.
respondents said they will use public cloud
to support their projects in 2018, with only For those using public cloud, the preferred
over 16 per cent admitting they would not. primary supplier is Amazon Web Services
(AWS), with over 70 per cent naming it as
On the other hand, it is worrying that on their primary platform. This is perhaps not
average only 46 per cent of applications in surprising, due to the technical features,
companies are currently on public cloud. enterprise support and extensive partner
Moving all applications to cloud allows networks the tech giant offers.
46%
0 50 100
Research: The State of Digital Transformation in Australia Technology 24
16.98%
Yes
83.02%
Continuous customer
delivery
Speed to market is still a struggle for
technology teams
Australian technology departments are still instead, should be aiming to use 2018 to
struggling to bring new customer products increase their agility through adopting
to market quickly. Just 10.28 per cent of DevSecOps practices. New ways of
survey respondents said they could take a working have the ability to halve the
new product to market in three months or time new items can be taken to market,
less, while nearly 29 per cent said it took improving customer experience and
an average of three to six months. Nearly therefore boosting business.
50 per cent said it took six to 18 months
to produce a new product and launch, In addition, the research found that it takes
and over 11 per cent said it took over 18 IT teams an average of 30 days to release
months. a new product update. This is a worrying
statistic considering the dramatic rise
Speed to market requires the correct in cyber security breaches in Australia.
processes, security, tooling, agile According to a government report, over
methodology and self-organising team 90 per cent of organisations experienced
structure. Even three months is a long time a cyber security breach or threat in 2016
to take a new product to market in today’s that compromised the confidentiality,
technology-driven world. Although this integrity, or availability of network data or
timeline may be satisfactory for quarterly systems. The number of threats is only set
shareholder reports, it is by no means to rise, and businesses need to be ready
acceptable to today’s digitally-hungry to promptly roll out updates to ensure
customers and prospects. Companies, security.
What Is DevSecOps
Security compliance has traditionally been a drag on performance. Perceived and actual conflicts
between the need to go faster and the need to be secure and compliant created divisions between
development teams (go fast!), operations teams (go slow!) and security teams (be safe!).
The solution is to shift security left. This means including security as early as possible in the
software delivery pipeline and embedding security into the very processes that you use to go
faster.
Research: The State of Digital Transformation in Australia Technology 26
Q: What is the average time it takes to take a new customer product to market?
28.97%
24.31% 25.23% 3-6
12-18 6-12 months
months months
11.21% 10.28%
18 months 3 months
and over or less
27.10% 26.17%
19.63% 16.82%
8.41% 1.87%
Looking ahead
What does this
year hold for digital
transformation?
Research: The State of Digital Transformation in Australia 28
What’s next?
We look ahead at the technology
innovations that will be impacting the
Australian market over the next 12 months
It is clear that both individuals and acquired more customer related data
businesses are struggling to keep up with than ever before. This offers technical
technology innovation. The digital-driven challenges around capturing the data
and globally-connected world has but also affords massive opportunities.
presented as many opportunities for Through the use of new machine
organisations as it has obstacles. learning techniques organisations can
automatically identify trends and query
So, with so many innovative technologies as well as evaluate data in real-time.
becoming available, what will IT teams be Additionally, top cloud providers now offer
focused on in 2018? ways to easily access these machine
learning techniques in order to integrate
When asked how important will big data, them into product development.
machine learning and AI be to your 2018
digital strategy, respondents gave a rating However, despite professionals keeping
of an impressive 3.75 out of five. abreast of the above technological
innovations, the Internet of Things (IoT)
The significance of these technologies remains off the radar of many businesses.
has been accepted for a number of years, Only 33.39 per cent of respondents said
but organisations of all sizes are still not IoT would be part of their 2018 strategy.
making the most out of the possibilities This may be to the fact that IoT still
they offer. Big data, machine learning and remains an emerging technology. Many
AI should all be used in unison to unlock organisations may not have discovered or
the true potential. even have a use for it yet, but the growth of
IoT will likely change this perception over
Companies have been capturing the coming years.
information for many years and have
3.47
0 5
Research: The State of Digital Transformation in Australia Looking ahead 29
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