Digitalisation during the pandemic: are businesses moving forward with technology?
In almost 18 months, the world has been disrupted, and how we work and how businesses operate has shifted. While the permanency of this new environment is uncertain, one thing that we do know is that organisations need to be responsive to change if they are to find success going forward. Technology is the non-negotiable tool to help businesses achieve this agility.
While companies have been expected to accelerate their use of technology during the COVID-19 crisis, 67% of organisations have fallen behind in their digital transformation strategy this past year. This was a key finding of The Digital Corporation 2021 study conducted by World Wide Worx in partnership with SYSPRO, Dell Technologies, Intel and Cycan. The research, which is based on feedback from 400 high-level decision makers at South African enterprises, indicates that the pandemic and the transition to remote working has slowed down digitalisation efforts.
Adapting to change now and in the futureDespite the reduced pace of digital transformation, investing in IT is still a priority for businesses, with only 8% of respondents decreasing their spend on technology compared to almost half increasing their budget on digital projects. This can largely be viewed as accommodating the needs of remote working, particularly as 97% of businesses are focusing on connectivity as a key area of expenditure.
Although there has been a delay in digitalisation, businesses remain committed to embarking on a digital journey. However, instead of prioritising emerging technologies associated with the Fourth Industrial Revolution, such as artificial intelligence, machine learning, big data, and robotics, businesses have placed business intelligence, cloud computing and software-as-a-service at the top of their spending list. These technologies lay a solid foundation for transformation and flexibility in the face of any future disruption.
Meeting industry needsDigital technologies are not only being used to adapt to changes in the business landscape. For those in the manufacturing sector, 94% say that greater efficiency is the critical objective of automation. Almost of all the manufacturers in the survey see this technology as bringing benefits of innovation to expand product lines (94%), competitiveness against larger offshore companies (91%), better data (91%), and increased quality to enhance customer satisfaction (90%).With three quarters of respondents in manufacturing realising the value and return on investment of automation, what is stopping these companies spending more in this area? Price – 88% say the high cost associated with these technologies, along 70% who feel that updating these technologies is expensive, prevents them from implementing ICT in this industry sector.While affordability remains a concern, especially for manufacturers, 99% of businesses view quality of product and service, followed by maintenance or after sales support (96%) as the topmost factors when it comes to technology purchasing decisions. IT vendors need to keep this ‘golden triangle’ of quality, service and price in mind when delivering technology solutions to increasingly discerning customers.
Don’t forget the human factorUltimately, while digital technology can help to create a more agile, efficient organisation, it’s people who make a business. This may be why 64% of South African enterprises expect all staff to make a full return to the workplace, with fewer than one in five anticipating half or less. While 58% of organisations have had more than half their staff working remotely since the outbreak of the pandemic, it seems unlikely that this will be the new norm for everyone.
At SYSPRO we have seen how digital transformation has grown in momentum over the years, but often in isolation and concentrated on a specific channel or need. While The Digital Corporation 2021 study has revealed how the pandemic has delayed efforts in implementing technology, organisations now have the opportunity to reassess their strategy to benefit almost every aspect of their operation. Rather than digital adoption being only within the realm of the CIO, CTO and IT, other resources and skills within an enterprise can be brought together to add value and drive transformation seamlessly.
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