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Digitalisation creates new revenue streams

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 13 Feb 2017
Organisations that have successfully executed digital initiatives saw improvements in their revenue streams, says a VMware study.
Organisations that have successfully executed digital initiatives saw improvements in their revenue streams, says a VMware study.

Over half of EMEA businesses (51%) that have successfully executed digital workspace initiatives saw improvements in their ability to more rapidly bring new revenue streams online. Almost half (49%) of IT and business decision-makers in EMEA saw improvements in total management costs after successfully executing on digital workspace efforts, while 52% realised overall cost improvements.

This is according to the Global VMware State of the Digital Workspace Report, which surveyed 1 200 business and IT decision-makers, practitioners and influencers in EMEA last year. The study revealed that 57% of organisations which had transformed their digital workspaces saw improvements to mobile workforce effectiveness, 54% in user satisfaction and 47% to security of devices, desktops and applications.

The cloud infrastructure and business mobility company research found this return on investment was driven by a combination of factors, the most prominent of which were: faster release of applications (34%), increased security of desktops and mobility devices (29%), and increased end-user effectiveness (28%).

"As we enter 2017, the industry is moving into the next phase of enterprise mobility where businesses have to deliver access to applications and resources of all types to end-users, customers and partners using any connected device," says Matthew Kibby, regional director, VMware Southern Africa. "The State of the Digital Workspace Report shows that business and IT leaders recognise the tangible benefits digital workspaces can offer to an organisation."

With digital transformation a priority for many, there is a smaller gap between the potential of digital workspaces and what businesses achieved since last year. Despite this, business decision-makers are still finding certain factors that are affecting digital workspace implementation, says the study.

The top perceived barrier to digital adoption in EMEA was security concerns (43%), followed by the issues of budget (38%) and required skills needed to support implementation (25%), notes the study.

Cathy Smith, MD for Cisco Southern Africa, says SA faces a few fundamental challenges that need to be overcome before businesses can fully embrace digitalisation. "Traditional methods of rolling out ICTs that have worked in other, more developed economies are not necessarily suited to South African needs. We need a new approach that prioritises collaboration to open the country up to digital inclusion and opportunity. The Internet of things should be part of every business discussion as digital transformation can drive operational efficiency, increase employee productivity, garner greater customer loyalty and create new revenue streams. To fully digitalise takes imagination, investment and expertise," she explains.

Forecasts by the International Data Corporation reveal the Middle East and Africa (MEA) region Internet of things (IOT) market will grow 19.6% year on year to reach $7.8 billion in 2017.

"The MEA IOT market is becoming increasingly competitive, enabling organisations to source a range of innovative digital solutions aimed at transforming business operations, improving the customer experience, and enhancing employee engagement," says Wale Babalola, research analyst for telecommunications, IOT, and digital media at IDC MEA. "Indeed, IOT now offers a myriad of industry-specific solutions that can be easily deployed by organisations in a bid to stay ahead of competition."

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