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Third of companies unprepared for digital

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A recent IFS study has revealed that even though big data, ERP and IoT are noted as top investment areas for digital transformation, only one in three of the companies surveyed are prepared due to talent deficiency.

IFS has revealed the findings of its Digital Change Survey that polled 750 decision makers in 16 countries to assess maturity of digital transformation in sectors such as manufacturing, oil and gas, aviation, construction and contracting, and service.

Strong willingness to invest

Nearly 90 percent of firms surveyed have ‘adequate’ or ‘advantageous’ funding for digital transformation, indicating a strong willingness to invest and an appetite to evolve their business in order to stay competitive and grow. When asked about prioritised investment areas, the top three choices were IoT, ERP and Big Data & Analytics.

“It is apparent that companies today understand the urgency of focusing on digital transformation.” IFS VP of global industry solutions Antony Bourne said: “Technologies such as big data and analytics, enterprise resource planning and internet of things are paramount to transforming a business. Companies need to apply innovative technologies hand in hand with their relevant industry expertise to succeed and gain a competitive edge. It is this combination that makes digital transformation both meaningful and powerful”.

Lack of talented employees

Alarmingly, more than a third of companies (34 percent) feel either slightly or totally unprepared to deal with digital transformation due to talent deficiency. When asked to name the areas that will experience the greatest deficit in talented staff, 40 percent cited “business intelligence” and 39 percent “cyber security”. Other areas of concern are “AI and robotics” (30 percent), “big data/analytics” (24 percent), and “cloud” (21 percent).

Antony Bourne added, “Although new technology is key to digital transformation, it is clear that change communications and access to the right talent are principal catalysts to succeed. It is alarming that more than one in three companies are not staffed to manage digital transformation. These organisations need to focus on concrete talent investment plans to make sure that they establish what roles are critical to success in their industries. After that the key is both to find and attract new talent as well as training and re-skilling existing staff.”

“Industrial IoT investments offer excellent ROI which is driving adoption,” stated ARC Advisory Group, VP Enterprise Software, Ralph Rio. He continued: “But, talent is a constraint as the IFS survey shows. Hence, IoT users partner with companies like IFS that offer leadership IoT solutions.”

Major differences across industries

When asked about the digital transformation maturity level of their organisations, meaning actual progress, 31 percent of the respondents consider their business to be in the two highest levels of maturity on a five-graded scale. The aviation industry is the most progressive with 44 percent of respondents considering themselves advanced in their ability to leverage digital transformation. Runner up is the construction and contracting industry, 39 percent of whom identified themselves as mature. At the other end of the spectrum is the oil and gas sector, where only 19 percent of the respondents consider themselves able to benefit from digital transformation.

“The differences in digital maturity levels across industries are notable. The highly competitive nature of the aviation industry, together with its rapid adoption rate of new technologies such as predictive maintenance and 3D printing for spare part manufacturing, are key drivers of its successful digitalisation”, Antony Bourne said.

Drivers and investment focus

43 percent of respondents identified “internal process efficiency” as the number one driving force behind digital transformation. “Accelerating innovation” (29 percent) and “growth opportunity in new markets” (28 percent) were recognided as the second and third most significant drivers.

Obstacles to digital transformation

Despite the practical and technical complexities of digital transformation, the number one barrier to change is on the human side: “aversion to change” (42 percent). The second and third largest barriers are the more concrete “security threats/concerns” (39 percent) and “absence of the right organidational and governance model” (38 percent).

Which will be the most disruptive technologies?

When asked what technologies will be the most disruptive, Big Data tops the list with a score of 7.2 out of 10. Second is Automation (7.0) and third is IoT (6.6). Although Big Data is ranked the highest overall, there is a significant minority who feel that automation will have the most dramatic impact. Over 40 percent rated the level of disruption by Automation as 8 or more out of 10, while only 32 percent gave such high ratings to Big Data. In the construction, aviation and manufacturing industries 48 percent, 48 percent and 50 percent respectively consider the automation disruption score >8/10, which makes it the highest rated technology for those industries.

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Tech promotes connections across groups in emerging markets

Digital technology users say they more regularly interact with people from diverse backgrounds

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Smartphone users – especially those who use social media – say they are more regularly exposed to people who have different backgrounds. They are also more connected with friends they don’t see in person, a Pew Research Center survey of adults in 11 emerging economies finds.

South Africa, included in the study, has among the most consistent levels of connection across age groups and education levels and in terms of cross-cultural connections. This suggests both that smartphones have had a greater democratisation impact in South Africa, but also that the country is more geared to diversity than most others. Of 11 countries surveyed, it has the second-lowest spread between those using smartphones and those not using them in terms of exposure to other religious groups.

Across every country surveyed, those who use smartphones are more likely than those who use less sophisticated phones or no phones at all to regularly interact with people from different religious groups. In most countries, people with smartphones also tend to be more likely to interact regularly with people from different political parties, income levels and racial or ethnic backgrounds. 

The Center’s new report is the third in a series exploring digital connectivity among populations in emerging economies based on nationally representative surveys of adults in Colombia, India, Jordan, Kenya, Lebanon, Mexico, the Philippines, Tunisia, South Africa, Venezuela and Vietnam. Earlier reports examined attitudes toward misinformation and mobile technology’s social impact

The survey finds that smartphone and social media use are intertwined: A median of 91% of smartphone users in these countries also use social media or messaging apps, while a median of 81% of social media users say they own or share a smartphone. And, as with smartphone users, social media and messaging app users stand apart from non-users in how often they interact with people who are different from them. For example, 52% of Mexican social media users say they regularly interact with people of a different income level, compared with 28% of non-users. 

These results do not show with certainty that smartphones or social media are the cause of people feeling like they have more diverse networks. For example, those who have resources to buy and maintain a smartphone are likely to differ in many key ways from those who don’t, and it could be that some combination of those differences drives this phenomenon. Still, statistical modelling indicates that smartphone and social media use are independent predictors of greater social network diversity when other factors such as age, education and sex are held constant. 

Other key findings in the report include: 

  • Mobile phones and social media are broadening people’s social networks. More than half in most countries say they see in person only about half or fewer of the people they call or text. Mobile phones are also allowing many to stay in touch with people who live far away: A median of 93% of mobile phone users across the 11 countries surveyed say their phones have mostly helped them keep in touch with those who are far-flung. When it comes to social media, large shares report relationships with “friends” online who are distinct from those they see in person. A median of 46% of Facebook users across the 11 countries report seeing few or none of their Facebook friends in person regularly, compared with a median of 31% of Facebook users who often see most or all of their Facebook friends in person. 
  • Social activities and information seeking on subjects like health and education top the list of mobile activities. The survey asked mobile phone users about 10 different activities they might do on their mobile phones – activities that are social, information-seeking or commercial in nature. Among the most commonly reported activities are casual, social activities. For example, a median of 82% of mobile phone users in the 11 countries surveyed say they used their phone over the past year to send text messages and a median of 69% of users say they took pictures or videos. Many mobile phone users are also using their phones to find new information. For example, a median of 61% of mobile phone users say they used their phones over the past year to look up information about health and medicine for themselves or their families. This is more than the proportion that reports using their phones to get news and information about politics (median of 47%) or to look up information about government services (37%). Additionally, around half or more of mobile phone users in nearly all countries report having used their phones over the past 12 months to learn something important for work or school. 
  • Digital divides emerge in the new mobile-social environment. People with smartphones and social media – as well as younger people, those with higher levels of education, and men – are in some ways reaping more benefits than others, potentially contributing to digital divides. 
    • People with smartphones are much more likely to engage in activities on their phones than people with less sophisticated devices – even if the activity itself is quite simple. For example, people with smartphones are more likely than those with feature or basic phones to send text messages in each of the 11 countries surveyed, even though the activity is technically feasible from all mobile phones. Those who have smartphones are also much more likely to look up information for their households, including about health and government services. 
    •  There are also major differences in mobile usage by age and education level in how their devices are – or are not – broadening their horizons. Younger people are more likely to use their phones for nearly all activities asked about, whether those activities are social, information-seeking or commercial. Phone users with higher levels of education are also more likely to do most activities on their phones and to interact with those who are different from them regularly than those with lower levels of education. 
    •  Gender, too, plays a role in what people do with their devices and how they are exposed to different people and information. Men are more likely than women to say they encounter people who are different from them, whether in terms of race, politics, religion or income. And men tend to be more likely to look up information about government services and to obtain political news and information. 

These findings are drawn from a Pew Research Center survey conducted among 28,122 adults in 11 countries from Sept. 7 to Dec. 7, 2018. In addition to the survey, the Center conducted focus groups with participants in Kenya, Mexico, the Philippines and Tunisia in March 2018, and their comments are included throughout the report. 

Read the full report at https://www.pewinternet.org/2019/08/22/in-emerging-economies-smartphone-and-social-media-users-have-broader-social-networks.

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Nokia to be first with Android 10

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Nokia is likely to be the first smartphone brand to roll out Android 10, after its manufacturer, HMD Global, announced that the Android 10 software upgrade would start in the fourth quarter of 2019.

Previously named Android Q, it was given the number after Google announced it was ditching sweet and dessert names due to confusion in different languages. Android 10 is due for release at the end of the year.

Juho Sarvikas, chief product officer of HMD Global said: “With a proven track record in delivering software updates fast, Nokia smartphones were the first whole portfolio to benefit from a 2-letter upgrade from Android Nougat to Android Oreo and then Android Pie. We were the fastest manufacturer to upgrade from Android Oreo to Android Pie across the range. 

“With today’s roll out plan we look set to do it even faster for Android Pie to Android 10 upgrades. We are the only manufacturer 100% committed to having the latest Android across the entire portfolio.”

HMD Global has given a guarantee that Nokia smartphone owners benefit from two years of OS upgrades and 3 years of security updates.

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