FutureScape 2019: ‘Digitally determined’ organisations on the rise, as CDO titles decline

In four years, 40 per cent of Kiwi employees will be working with bots or other forms of AI

The world is moving to the next chapter of digital transformation: technology driven transformation altering business and society, reports IDC.

In this environment, the race to innovate is a constant, with organisations tackling multiple factors - data, cybersecurity and digital talent gap - in order to survive and thrive.

So how are New Zealand organisations handling these multiple challenges in the digital era?

Over the past few years, the digital transformation landscape has changed in New Zealand, says IDC. Previously, the term was linked with experimenting digital technologies with many proofs of concepts and few scalable deployments.

This, however, has changed, with the increase of major digital transformation deployments from industry leaders at scale.

In fact, by 2020, IDC predicts at least 55 per cent of NZ organisations will be ‘digitally determined’, transforming markets and reimagining the future through new business models and digitally enabled products and services.

In IDC's 2018 digital transformation executive survey, 62 per cent of NZ organisations reported plans to establish a digital transformation roadmap in the next two years (with 36 per cent already having a roadmap in place).

“This is a strong sign that NZ enterprises are increasingly relying on digital to foster innovation and create a competitive advantage,” reports IDC in its FutureScape: Worldwide Digital Transformation 2019 Predictions - New Zealand Implications (see sidebar at the end of the article for the top 10 trends).

The shift to become ‘digitally determined’ will also coincide with more digital capabilities being realised in NZ businesses.

The result is dedicated capital spending, planning, and execution for digital transformation, according to the report by IDC NZ analysts Shane Minogue, Monica Collier, Scott Manion, Richard Xu, Jefferson King, Anastasia Antonova, Louise Francis, Alex Yuen, Chayse Gorton, and Liam Landon.

The report notes how over the past three years, the chief digital officer role (CDO) has emerged in both public and private organisations in in New Zealand. These executive roles were tasked to kickstart digital transformation and provide strategic business direction.

According to the latest FutureScape, however, in four years the CDO title will be in decline as digital becomes embedded into the business. In New Zealand, this decline is happening at a much slower pace as CIOs are still shifting to a CDO role, rather than becoming a digital CEO.

IDC's June 2018 Executive Sentiment Survey, on the other hand, finds 40 per cent of New Zealand CEOs facing significant pressure to deliver a successful digital transformation strategy.

Nonetheless, the global average is over 60 per cent, and this lower level of perceived pressure is one of the reasons that IDC is predicting New Zealand will be slower to adopt the digital CEO model.

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