Global Survey Identifies Skills as a Key to Successful Digital Transformation
- Worldwide survey of 1,625 global business leaders including Australia outlines the challenges organisations are facing in delivering across the four strategic elements needed for digital transformation: People, Actions, Collaboration and Technology (PACT).
- Over 70 percent of respondents identified a clear lack of digital skills within their organisation, with over 80 percent of Australian organisations surveyed acknowledging that the skills gap is the biggest hindrance to addressing cyber security initiatives.
- 84 percent of businesses say that their customers expect them to be more digital, while over 75 percent of Australian businesses are concerned about their ability to adapt to Artificial Intelligence (AI).
Realising digital transformation is about much more than technology alone. The research commissioned by Fujitsu, which includes over 150 respondents from Australia, examines how businesses are performing against the four strategic elements required to digitally transform: People, Actions, Collaboration and Technology (PACT). Organisations recognise the importance of digital transformation with the majority of businesses (46%) having already implemented transformation projects, while 86 percent say they are planning for the impact of technology on their business beyond the next 12 months. However, organisations continue to face challenges across the four pillars of PACT.
Mike Foster, Chief Executive Officer of Fujitsu Australia and New Zealand, said “It is no surprise that the results of the survey show that customer expectations have a strong influence as a driver for digital transformation. It is also clear that organisations worldwide including Australia are feeling the need to ramp up their skillset across all areas of digital in order to stay competitive. We are seeing a strong interest in adoption of co-creation techniques used for developing digital projects and organisations are clearly seeing the benefits of strategic partnering as a means of addressing the skills gap.”
When considering their approach to the people involved in digital transformation, the vast majority of business leaders (90%) are taking steps to increase their access to digital expertise, with 70 percent admitting there is a clear lack of digital skills within their organisation. For example, 80 percent say that a lack of skills is the biggest hindrance to addressing cyber security. Looking to the future, skills will continue to be a key business issue; 93 percent say upskilling staff will be vital to their organisation’s success in the next three years, while 83 percent believe artificial intelligence will transform the skills needed by 2020.
Looking at actions, meaning the processes and behaviors needed to make digital transformation work, nine in ten business leaders (90%) say their organisation has a clearly defined digital strategy, while 83 percent are confident that the rest of the business knows what it is. However, three quarters (74%) say that projects are often undertaken that aren’t linked to the overarching business strategy, while 72 percent say shadow digital projects are the only way parts of the organisation can complete meaningful innovation. Crucially, two in three (66%) say the cost of failure has put them off future digital transformation.
Business leaders are taking positive steps in collaboration, with most businesses undertaking or planning to undertake co-creation projects (63%), with partners including technology experts (64%) and existing customers (42%). Surprisingly, 79 percent would even be willing to share sensitive information as part of these co-creation projects; however, 73 percent say that a lack of success within a quick timeframe would quickly put an end to their strategic partnerships.
And when it comes to technology, business leaders are planning to implement a wide range of systems; in the next 12 months, over half are planning to introduce cyber security solutions (52%) or the Internet of Things (51%), with cloud computing (47%) and artificial intelligence (46%) following close behind. Business leaders are aware of the disruptive impact of technological change, as 86 percent say the ability to change will be crucial to their survival in the next five years. However, 71 percent are concerned about their organisation’s capacity to adapt to technologies like artificial intelligence.
Mr Foster continued, “A balance of the four vital ingredients – People, Actions, Collaboration and Technology - is essential for organisations to thrive in the digital era. While we need to keep up with the pace of technological change, for success it is essential to have skilled people, supported by a culture of innovation.”
Notes to editors
¹Fujitsu’s “The Digital Transformation PACT” report is available for download here http://www.fujitsu.com/au/pact/
This quantitative research was carried out in July and August 2017 by independent research company Censuswide. 1,625 business decision makers were surveyed within mid to large sized businesses across public sector, financial services, retail and manufacturing. All respondents had either already delivered a digital transformation project or had expressed an interest in doing so in the future.
Survey sample size per country:
- Australia: 153
- China: 150
- Finland and Sweden: 150
- France: 150
- Germany: 151
- Hong Kong: 50
- Ireland: 20
- Italy: 150
- Japan: 150
- Singapore: 50
- Spain: 151
- United Kingdom: 150
- United States: 150
Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Approximately 155,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.5 trillion yen (US$40 billion) for the fiscal year ended March 31, 2017. For more information, please see http://www.fujitsu.com.
About Fujitsu Australia and New Zealand
Fujitsu Australia and New Zealand is a leading service provider of business, information technology and communications solutions. We partner with our customers to consult, design, build, operate and support business solutions. From strategic consulting to application and infrastructure solutions and services, Fujitsu Australia and New Zealand have earned a reputation as the single supplier of choice for leading corporate and government organisations. Fujitsu Australia Limited and Fujitsu New Zealand Limited are wholly owned subsidiaries of Fujitsu Limited (TSE: 6702). See www.fujitsu.com/au.
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Date: 24 October, 2017