The State of Digital Transformation in Australia 2018

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The State

of Digital
Transformation
in Australia

Join the conversation @continoHQ


Research: The State of Digital Transformation in Australia 3

Contents

Comment from Contino 4


Overview 6
Top five findings 7
Process 8
People 13
Infographic 18
Technology 20
Looking ahead 27
Research: The State of Digital Transformation in Australia 4

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

Get involved in the


debate on Twitter
using the hashtag
#DigiOz18
Research: The State of Digital Transformation in Australia 6

Overview

What does digital over 110 professionals,


transformation mean to ranging from engineers
your organisation? How to directors, working at
does your team plan to some of the best known
reach your digital goals in Australian enterprises in the
2018? And what are the most competitive sectors.
main hurdles you have
to overcome to put the The results shed light on
company’s vision into the biggest challenges
action? and opportunities facing
technology teams today.
Back in December This report offers advice
2017, Contino launched on how to jump the highest
the first-ever research hurdles, such as increasing
into the state of digital agility, attracting talent
transformation and DevOps and implementing new
in Australia to answer these technologies. Furthermore,
big questions. it reveals the biggest
technology trends
We reached out to IT professionals should keep
professionals via an online an eye on in 2018.
questionnaire to gain a
greater understanding of We hope this industry
digital strategy objectives, analysis is of assistance
technology processes as when planning and carrying
well as culture change. We out digital transformation
received responses from projects this year.
Research: The State of Digital Transformation in Australia 7

Top five
findings
Improving customer experience and
engagement is the main objective for the
majority of organisations’ 2018 digital strategies.

Only just over 10% of companies can bring a


new customer product to market in less than
three months.

Digital projects will require upskilling staff in


over 90% of cases.

On average, only 46% of an organisation’s


applications are on public cloud.

Big data, AI and machine learning will soar in


significance in 2018.
Research: The State of Digital Transformation in Australia 8

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

What does digital


transformation
actually mean?
We unravel the complicated concept of
digital transformation…

‘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 and why should I care?


The role of DevOps in digital transformations

What is DevOps?
DevOps is a set of best practices that enable substantially faster, more
efficient and more agile delivery of high quality software.

How is DevOps different?


DevOps involves enabling key technology stakeholders to work together
more effectively and combining this with best-in-class release and
infrastructure automation in order to speed up delivery and to focus
everyone on the real business goals of software.

Why is DevOps so important?


When DevOps is adopted successfully, the organisation is empowered
to deliver software better – giving them a greater capacity to stay
ahead of the competition, get to market faster, and innovate far more
Australian businesses
effectively. must begin to disrupt or
be disrupted
Research: The State of Digital Transformation in Australia Process 10

Why are Australian


businesses
failing to keep up
The
with the global
pace of digital
present
transformation?
Australian businesses
picture
did not suffer from the
same market crisis that The current state of digital transformation
occurred in the majority
of the world, namely the
in Australia revealed
global financial crisis.
In Europe and the US,
this crisis resulted in the
When asked to rate the digital maturity
consolidation or loss of level in their organisation, only 25 per cent Q: Do you have a clear and
a significant number of of respondents believed their business was defined digital strategy for
organisations, ultimately ‘ahead’ in this area. The majority (31 per 2018?
forcing companies to cent) rated their company as slightly above
the industry average. However, worryingly,
adapt by becoming 21 per cent believed the digital maturity
leaner to survive. level of their organisation to be either
Competition increased below average or behind the curve.
for the customer as
More encouragingly, nearly 69 per cent
these same customers of Australian companies have a ‘clear
increasingly moved and defined digital strategy’ for this year.
online. By looking to However, the remaining 18.75 per cent said
they had not put a strategy in place, and
reduce costs and increase a further 13.39 per cent of respondents Yes No I don’t know
speed, companies looked admitted they didn’t know whether they
to cloud services to had a well-defined strategy in place. 67.86 18.75 13.39
reduce the size of exit % % %
The report also unsurprisingly showed that
datacentres, which respondents who said their company did
also gave them the not have a digital strategy or didn’t know,
opportunity to further tended to be those who rated their digital
maturity as behind the industry average. Q: How do you rate your
digitally-enable service organisation’s digital maturity
offerings. Not having a clear vision for the next
12 months, or not communicating it to
level?
Meanwhile, Australia employees effectively, means these
was largely unaffected. organisations – in particular the larger
enterprises – will struggle to make their
Competition for
customers remained flat,
digital vision a reality. It is crucial that
these companies set forward a vision
3.5 out of 5

companies anticipated aligned to core business objectives as they


a market impact that are at risk of falling even further behind
their competitors.
did not materialise and
simply cut spending on
technology. Therefore,
the market did not need
to react to customers new Not having a clear vision
expectations as quickly, for the next 12 months
partly caused by the lack means organisations will
of need to respond. struggle to make their
digital vision a reality
Research: The State of Digital Transformation in Australia 11

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).

Q: Who is the person responsible for digital vision/strategy?

Chief Technology Officer Chief Executive Officer Chief Digital Officer or Head of Digital Chief Strategy Officer

35.40% 27.43%

Chief Information Officer


8.85%

Chief Marketing Officer


4.42%

19.47% 4.43%

Q: Which group is driving your digital strategy?

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

How to overcome the biggest barriers


The study shows IT teams are struggling to deal In order to achieve the top goals of becoming
with the amount of tasks being assigned to more customer-centric, efficient and innovative
them, making digital transformation difficult. it’s vital leadership teams align transformations
This is perhaps because when starting a to core business problems. Short-term wins
new digital transformation it is common will lead to embedding changes in the corporate
to commit a large budget and establish a culture. Cultivating a sense of urgency and
dedicated programme team to the task. To fostering a ‘let’s just do it’ mindset are key to
justify the expenditure, a large number of success – companies can’t simply afford to
key priority items are identified, immediately spend months at a time debating and crafting
overcomplicating the project. Ultimately, a single long-term strategy which may well be
this approach becomes frustrating for those inappropriate or out of date by the time it’s
working on the transformation, as progress
drafted. To stay ahead, business leaders need
becomes slow as the running and updating of
existing capabilities remains important. Teams to constantly launch new strategic initiatives
are forced to work on old and new systems that align with the high level digital vision. This
simultaneously with insufficient time to devote should include simultaneously building, testing
to either of them. and exploiting many transient competitive
advantages. This will allow projects to have the
To date, this large-scale approach to digital maximum impact, quickly.
transformation has failed. In fact, according
to a global analysis of 3000 executives
by McKinsey, only 30 per cent of large
transformation change programmes have Just 30 per cent of large transformation
succeeded. change programmes have succeeded to
date

Q: What is the biggest barrier to digital transformation?

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

Q: What is the main objective of your digital strategy?

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

Our research findings reveal a teams as well as changing current cultural


disappointing disparity between the attitudes that may have been formed over
importance of digital transformation several years.
to an organisation’s leadership team
and employees. Almost 53 per cent of Additionally, for digital transformation
respondents said digital transformation to be successful, the professionals
is ‘extremely important’ to leadership, implementing and using new technologies
but only 37.27 per cent believed it to be need to understand how to use them
important to staff. effectively. Leveraging technologies
effectively requires not only the training of
This is a cause of concern, as without staff, but also addressing new challenges,
buy-in from the entire company – from such as any security and compliance
the board to new graduate employees issues arising whilst implementing a new
– innovative projects are doomed from technology. For example, prior to a digital
the start. The decision to embrace transformation, customer records may
digital transformation is usually made have been kept on site. If that data is then
by decision-makers at the top of the moved to the public cloud as part of a
organisation. However, implementing digital transformation strategy, employees
a successful transformation requires need to understand how this form of data
the participation of everyone in the storage differs from on-site storage and to
organisation, it’s crucial projects are not adjust their workflows accordingly.
imposed from the top down.
Many companies attempt to upskill their
Furthermore, innovative and cutting-edge teams by sending their staff on courses
projects mean internal disruption. Over 62 and training programmes. While this is
per cent of businesses plan to restructure perhaps one way to conquer Australia’s
their IT teams in order to support digital skills shortage, in reality engineers
upcoming projects, compared to 21.1 per learn more by working on real projects.
cent which do not. Additionally, to make Hiring experienced engineers to train a
these restructuring programmes work, an current team while they are working on
overwhelming 90 per cent of respondents real-time projects using a dual delivery and
believe digital transformation will require upskilling approach has been proven to
upskilling current staff. This is a huge task yield better results.
as it involves mass upskilling of current

Without buy-in from


the entire company
innovative projects are
doomed from the start
Research: The State of Digital Transformation in Australia People 15

Q: Does your company plan to restructure Q: Do you believe digital transformation will
to support upcoming digital transformation require upskilling staff?
projects?

Yes No I don’t know Yes No I don’t know


62.39 21.10 16.51 90 6.36 3.64
% % % % % %

Q: How important is digital transformtation to your company’s leadership team?

52.73%
30%
11.82% 5.45%
0%

Extremely Very Somewhat Not so Not at all


important important important important important

Q: How important is digital transformation to employees?

37.27% 36.36%
22.73%
2.73% 0.91%

Extremely Very Somewhat Not so Not at all


important important important important important
Research: The State of Digital Transformation in Australia 16

Attracting and
retaining talent
Businesses need to ensure they hire and
retain the very best IT talent

The majority of organisations plan to hire Yet, creating a forward-thinking and


more staff to support their 2018 digital innovative company culture becomes
transformation projects, with just 24.55 difficult in the enterprise space where
per cent of respondents believing their more traditional notions of working
organisation did not require more staff. remain. Although some big businesses
Yet, with the current global IT skills gap, acknowledge and accept that now is the
where will this additional tech talent come time for change. For example, recently
from? Goldman Sachs’ new CIO, Elisha Wiesel,
relaxed the company’s dress code in a bid
According to our research, local talent to retain and attract talent in response to
will be the core focus (selected by 36.36 the organisation continuing to lose out to
per cent), followed by upskilling current Silicon Valley. This proves large enterprises
employees (28.18 per cent) and overseas need to take risks if they are to attract
talent (23.64 per cent). Meanwhile, tech-savvy millennials who want more
apprenticeships and collaborations with than an attractive salary package.
universities are far less of a priority, only
being selected by 6.36 per cent of survey Additionally, changing or upgrading tools
respondents. to attract talent is a practice regularly
overlooked by many organisations. The
However, attracting local or overseas talent best technologists want to work with the
is a complex task and as such it is vital that latest tools, and as a result it is vital that
businesses cultivate an innovative and organisations frequently review their stack.
progressive company culture to employ Furthermore, implementing newer, more
and retain the very best. automated technologies, not only enables
businesses to attract better talent, but
Company culture is essentially the identity also means that fewer individuals are often
or personality of a company. Introducing required to do the same work.
flexibility, diversity, team building activities,
hackathons or meetups and a relaxed
dress code are all ways businesses of all
sizes can attract top talent.

36.36%
28.18% Local talent
Upskilling
current staff 23.64%
Overseas talent
6.36%
Apprenticenships and
collaborations with 5.46%
universities
Other

Q: Where do you think the additional staff will come from?


Research: The State of Digital Transformation in Australia People 17

Q: Will you require more


staff to support your 2018
digital strategy?
I don’t know

19.09%

Yes
56.36%

No

24.55%

Large enterprises need


to take risks if they are
to attract tech-savvy
millennials
On average
Australian businesses The majority of organisations
rate their current have a defined digital strategy
digital maturity level for 2018 but 18.75% don’t

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

The top three aims of 2018 digital strategies are:

Increase
efficiency Improve
innovation
Transform
the business

Ensure bigger Improve


financial returns Other business
decisions

47.79% 18.59% 16.81% 12.39% 2.65% 1.77% 0%

However, biggest barriers to digital transformation are...


Lack of
organisational
Lack of agility
overall Lack of Lack of Lack of
Too many strategy technical
competing management budget Other
skills support
priorities

34.21% 13.16% 7.89% 21.05% 4.39% 10.53% 8.77%


Yes

56.36% New tech talent will come from...


of organisations will I don’t
require more staff in know
Local
19.09%
2018 to support their Upskilling
talent
digital projects current staff Overseas
talent
Apprentieceships
and collaborations
with universities
No Other
24.55%

28.18% 6.36% 36.36% 23.64% 5.46%

6 months And to release


or more
another product
update is...
Currently the average
time it takes to bring 3-6
a new product to 12-18 6-12 months
months
market is…. months
3 months
or more
18 months
and over 3 months
or less

1 day
11.21% 24.31% 25.23% 28.97% 10.28% or less

The top cloud provider is...


AWS

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 % %

MACHINE LEARNING Big data, machine learning and AI will soar in


significance in 2018, with professionals rating
these technologies 3.5/5 in importance
T A

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

The core principles of The Agile Manifesto

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.

7. Working software is the primary measure of progress.

8. Agile processes promote sustainable development. The sponsors, developers, and users should
be able to indefinitely maintain a constant pace.

9. Continuous attention to technical excellence and good design enhances agility.

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.

Additionally, most departments plan to Although containers and kubernetes


leverage microservices via containers and/ remain important tools right now, they
or serverless architectures in production are slowly diminishing in value. Eventually
this year. Over 32 per cent plan to use containers – just like IaaS – will become
containers, 12.38 per cent serverless, legacy systems. Therefore, companies
while nearly 39 per cent say they will be should focus on newer more innovative
using both. tools, such as serverless, since not only do
they offer the highest level of abstraction
Combining the number shows that 75 per
cent of respondents will use containers
and productivity, but more importantly,
empower far superior data agility. After all,
Does agile methodology
in production and 55 per cent will utilise data has become the world’s most valuable result in an overall agile
serverless. This is consistent with previous
industry observations which have shown
commodity for business today. business?

Q: Will you leverage Q: Do you believe your current


Q: How would you describe the
Microservices via platforms are able to support
delivery methodology that your
Containers and/or Serverless your 2018 digital transformation
organisation practices?
Architectures in production? projects?

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

0.93% 62.26 29.25 8.49


% % %
Research: The State of Digital Transformation in Australia 23

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.

Q: What percentage of applications in your organisation are


on public cloud?

46%

0 50 100
Research: The State of Digital Transformation in Australia Technology 24

Q: Will you use public


cloud to support digital
transformation? No

16.98%

Yes
83.02%

Amazon Web Services is


the most popular cloud
supplier in Australia

The power of the cloud


The top benefits of moving to public cloud

• Bypass legacy processes, thinking and


culture
• Completely reset how IT is managed –
removing years of scar tissue that has built
up
• Break the dependency on legacy system
integrators
• Gain an opportunity to modernise and
reinvent how the technology departments
function.
Research: The State of Digital Transformation in Australia 25

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.

Three months is a long


time to take a new
product to market in
today’s technology-driven
world

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

Q: What is the average time it takes to release a product update?

1 day 3 months 6 months


or less or more or more

Q: How often can you get customer feedback on a new product?

27.10% 26.17%
19.63% 16.82%
8.41% 1.87%

Real-time Daily Weekly Monthly Quarterly Yearly


Research: The State of Digital Transformation in Australia 27

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

Q: How important will big data, machine learning and AI be in your


2018 digital strategy? Big data, machine
learning and AI should
all be used in unison to
unlock the true potential

3.47

0 5
Research: The State of Digital Transformation in Australia Looking ahead 29

Q: Is IoT part of your 2018


digital strategy?
I don’t know
Yes
19.81%
33.96%

No

46.23%

Why companies should be thinking about IoT now


Wearables are already becoming a part of our daily way of life. Connecting technology to the
physical world means an instant abundant source of data. This will be an invaluable asset to
businesses in the future, as IoT will allow them to:
• Create products that customers really want
• Make smarter business decisions in real-time
Large enterprises need
• Adapt business models to keep up with a constantly changing world.
to take risks if they are
toConsequently,
attract tech-savvy
making IoT part of an organisation’s digital strategy will ensure it is not left behind.
millennials
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