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.
Welcome to world of 2099
The world of 2099 will be unrecognisable from the world of today, but it can be predicted, says one visionary. ARTHUR GOLDSTUCK met him in Singapore.
Futuristic structures tower over the landscape. Giant, alien-looking trees light up with dazzling colours amid the hundreds of plant species that grow up their trunks. Cosmetic stores sell their wares via public touch-screens, with products delivered instantly in drawers below the screens.
This is not a vision of the future. It is a sample of Singapore today. But it is also an inkling of the world we may all experience in the future.
Singapore was the venue, last week, of the World Cities Summit, where engineers, politicians, investors and visionaries rubbed shoulders as they talked about the strategies and policies that would enhance urban living in the future.
As part of the Summit, global payment technologies leader Mastercard hosted a small media briefing by one of Singapore’s leading thinkers about the future, Dr Damian Tan, managing director of Vickers Venture Partners. The company’s slogan “We invest in the extraordinary,” offers a small clue to Tan’s perspective.
“We look as far forward as 2099 because, as a venture capital firm, we invest in the long term,” he tells a group of journalists from Africa and the Middle East. “Companies explode in growth because there is value in the future. If there is no growth, they won’t explode.”
The big question that the Smart Cities Summit and Mastercard are trying to help answer is, what will cities look like in the year 2099? Tan can’t give an exact answer, but he offers a framework that helps one approach the question.
“If you want to look at 81 years into the future, and understand the change that will come, you need to double that amount and look into the past. That takes us to 1856. The difference between then and now is the difference you can expect between now and 2099.”
- Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube
Use the page links below to continue reading about Tan’s visions.
Win a Poster Heater with Gadget and Takealot.com
This winter Gadget and Takealot.com are giving away three Poster Heaters, which look like posters but become heaters when you plug them in.
Three Gadget readers will each win a unit, valued at R550 each. To enter, follow @GadgetZA and @Takealot on Twitter and tell us on the @GadgetZA account how many Watts the heater consumes.
What’s the big deal about these heaters? Many of us are struggling to keep the balance between soaring electricity costs and the need to keep warm this winter.
However, the recently launched Poster Heater by EasyHeat and distributed in South Africa by Takealot.com is not only one of the most cost effective electric heaters currently on the market, it is also easy to setup and use.
As the name indicates, it is a poster similar to one you would hang on a wall. But, plug it in and it turns into a 300 Watt heater. The Poster Heater isn’t designed to heat hallways or large rooms, but rather smaller ones like a bedroom or a baby’s nursery or a dressing room.
It uses radiant heating, which means that it heats up in a couple of minutes and the heat is directed at the objects or people around it, quickly taking the chill out of the air and providing a comfortable ambient temperature.
The other advantage of radiant heating is that it doesn’t dry out the air like infrared or gas heaters. Users also don’t have to worry about their children or pets getting too close to it because, even though it gets hot, it can be touched.
To enter the competition follow the steps below:
Competition entry details:
3. The competition closes on 31 July 2018.
4. Winners will be notified via Twitter on 1 August and Takealot.com will be in touch to organise delivery.
5. The competition is only open to South African residents.