Australian companies are struggling to keep up with the pace of global digital adoption and transformation. According to Accenture’s data, 40% of local companies fall in the bottom quartile of companies when ranked by their digital maturity level against global competitors.
Accenture’s technology lead, Matt Coates, suggests that local companies need to consider investing more of their IT budgets in strategic innovation rather than merely maintaining existing systems to keep pace. He also advises clients to direct 15% of IT budgets to debt remediation.
What is Digital Maturity?
Digital maturity is ranked based on how advanced companies are in adopting a “digital core” – cloud infrastructure, digital platforms, data architecture, and security backbone that allow for an organisation to innovate and grow.
Several reasons contribute to Australian organisations lagging global competitors in digital adoption. These include:
Australian organisations face challenges in adopting technologies such as cloud, data governance, and cybersecurity risk. Accenture’s research indicates that 61% of ANZ executives report that digital platforms are not being effectively utilised within their organisations.
Accenture recommends the following for businesses looking to build a leading digital core:
Recent findings from Accenture’s research indicate that a large portion of Australian companies are struggling to keep up with the pace of global digital adoption and transformation. This comes as no surprise, given the rapid advancements in technology and the ever-evolving needs of the market.
Digital Maturity and Its Impact
Accenture’s report, “Reinventing with a Digital Core,” highlights the importance of digital maturity in driving business growth. Australian organizations that have achieved a higher level of digital maturity are experiencing higher revenue growth rates and increased profitability. However, a significant portion of Australian companies are lagging behind, with 40% falling into the “global bottom” quartile of companies.
The Challenges Ahead
Matt Coates, technology lead at Accenture Australia and New Zealand, identifies several challenges that Australian organizations face in their digital transformation journey. These include a short-term mindset, cultural resistance to change, and a lack of effective change management and talent upskilling programs.
Key Recommendations for Success
To address these challenges, Accenture offers several recommendations, including:
By adopting these strategies, Australian organizations can bridge the digital gap and stay competitive in the global market.