Australian businesses have rated increased profit margins, productivity improvements and cost reductions as the top three benefits achieved by their current digital transformation initiatives. Senior execs responding to new IDC research, ‘Unlocking the Economic Impact of Digital Transformation in Asia Pacific’, commissioned by Microsoft, expected these gains to significantly grow over the next three years, by at least 40 per cent. As a result, researchers predict digital transformation to add an estimated $45 billion to Australia’s GDP by 2021 and increase its compound growth rate by 0.5 per cent annually. Other reported benefits from transformation efforts were increased revenue from new products and services and improved customer loyalty and advocacy. This year will see heavy investment in core technologies such as cloud, mobility and big data according to the survey’s respondents – made up of 100 mid and large-sized organisations in Australia – followed by security, social media and e-commerce. AI and robotics was the most popular (8.9 per cent) emerging technology in line for investment this year, followed by internet-of-things (4.4 per cent) and ‘next generation interfaces’ (2.8 per cent). “Australia is clearly on the digital transformation fast track. [As well as digital products and services] organisations are increasingly deploying emerging technologies such as artificial intelligence as part of their digital transformation initiatives, which will accelerate growth even further,” said Steven Worrall, managing director, Microsoft Australia. Many businesses were found to be using “non-standard business” KPIs to measure digital transformation outcomes. Nearly half (47 per cent) measured process/service effectiveness, 46 per cent measured customer advocacy and 40 per cent employee advocacy. Asked about the biggest challenges of digital transformation – the most common response given was “lack of skills and resources” followed by “siloed and resilient culture”, “lack of advanced analytics to develop actionable insights” and “lack of thought leadership in driving digital transformation”. “It’s important to note, transformation is about people as much as it is about technology,” Worrall added. “The top two barriers to digital transformation cited in the study are strongly anchored in an organisation’s ability to empower their people and transform their organisations to take advantage of the opportunity that digital transformation represents.” Societal impact The highest ranked answer to the question of digital transformations’ societal benefits was given as “create more higher value jobs in the future for individuals”. However, although 30 per cent of respondents said they would be retraining or upskilling staff, and 24 per cent said new roles would be created by digital investments, some 29 per cent said jobs would be outsourced automated or made redundant as a result. Related content BrandPost Stay in Control of Your Data with a Secure and Compliant Sovereign Cloud By Stan Kwong Mar 23, 2023 6 mins Cloud Security Cloud Computing News Accenture to lay off 19,000 to cut costs amid economic uncertainty Technology services giant Accenture will continue to hire but meanwhile is cutting staff to streamline operations in the face of economic headwinds. By Anirban Ghoshal Mar 23, 2023 2 mins IT Consulting Services Technology Industry BrandPost Advice from procurement: How to evaluate and propose new IT investments By clearly defining needs and requirements, evaluating TCO, and performing risk assessments, procurement and IT teams can work together to help their business leaders make more informed decisions for an improved bottom line. By Bo Bradshaw, Edgio Procurement Director Mar 23, 2023 5 mins SaaS BrandPost Why AI is key to hiring and retaining developers Data shows that the opportunity to build AI-powered apps figures very prominently in where developers decide to work. By Bryan Kirschner, Vice President, Strategy at DataStax Mar 23, 2023 4 mins Artificial Intelligence IT Leadership Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe