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SA firms miss out on innovation opportunities

Regina Pazvakavambwa
By Regina Pazvakavambwa, ITWeb portals journalist.
Johannesburg, 04 Nov 2016
For South African businesses to become more agile and competitive, proactive investment in innovative technologies is an imperative, says Citrix's Brendan McAravey.
For South African businesses to become more agile and competitive, proactive investment in innovative technologies is an imperative, says Citrix's Brendan McAravey.

Digital transformation readiness is not top of the priority list of the South African business decision-maker and this is placing the country at a risk of global irrelevancy.

This is according to a recent study commissioned by Citrix and conducted by BMI-TechKnowledge, which seeks to examine the impact of ICT on South African businesses.

The survey consisted of 329 interviews in 254 companies with an eventual 40-60 split between business and ICT technical respondents.

There is a sense of complacency among the South African business community regarding investment in progressive technologies, say the study.

It notes 53% of all respondents are choosing to invest in technologies simply for the benefit of 'keeping the lights on' rather than for competitive-edge innovation.

As a result companies are possibly at risk of becoming irrelevant on a global stage, as other countries surge ahead with digital transformation projects to create innovative and technology-driven business, the study finds.

"Local business are under great pressure, both from an economic and competitive point of view, and one can understand the focus on reducing costs and improving efficiencies to ensure the lights stay on, but the need to look at innovation in all areas of business is now greater than ever."

Brendan McAravey, country manager at Citrix SA, says from enterprise to healthcare to financial services to government, everything is increasingly digital - allowing people, organisations and devices to connect and engage in new ways.

In order for South African businesses to become more agile and competitive, proactive investment in innovative technologies is an imperative, he continues.

"Given how the convergence of cloud, mobile, big data analytics and Internet of things has changed and improved the way global counterparts work and live, South African businesses now have a choice.

"They can either invest in technology for the purpose of innovation rather than just operational efficiency or opt to ignore the fact that digitisation is inevitable and continue on a path to global irrelevancy."

South African companies are at risk of technological devolution against more innovative competitors on a global scale, McAravey warns.

He believes investment in foundational technologies now may shift SA towards a more positive and productive future.

According to the study, there is disconnect between technical workers and business respondents regarding the importance of transforming.

Technical respondents better understood the vital importance of digital transformation to improve performance and ultimately transform a company.

As many as 83% of the technical respondents identified a direct link between digital transformation and the achievement of strategic business objectives.

Yet, only 31% of business respondents specified that their organisation had been driving digital transformation at the highest level.

The study says business leaders are failing to acknowledge the need to proactively invest in the future today.

According to a Dell Digital Transformation Index, every business, from laggards in healthcare to those currently leading the pack in media and entertainment, will need to go on a digital journey.

Although, the majority of businesses are only beginning their digital transformation journey, it does not mean they are doomed, says the Dell index.

"While the revolution is upon us, it's nowhere close to completion - the opportunity is and will continue to be massive, however, the time to act is now."

Deloitte says a major challenge for South Africa is that there is not only a local, but also a global talent shortage for industry 4.0 professionals.

There is a need to re-train the existing workforce and upskill labour to understand and operate new and smart technologies, it says.

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