Survey reveals ANZ CIOs struggling with digital transformation
Rimini Street has unveiled the results of a Tech Research Asia survey titled "Operational Excellence is a Key Part of System Modernisation". The headline findings indicate that 98% of the 305 CIOs and CTOs surveyed across Australia and New Zealand are striving to implement digital transformation (DX). However, without the benefit of a comprehensive vision for the future, their lack of strategic clarity may be resulting in missed objectives and low ROI from their modernisation efforts.
Close to 60% of respondents state that their modernisation programmes are resulting in no more than marginal improvements for the business. With nearly nine in ten (88%) of survey participants pushing forward with modernisation work, two-thirds report their projects to be behind schedule (61%) and over budget (68%). Subsequently, these IT leaders must explain to their board members why they have spent time and money on projects that have not yet delivered substantial results.
Rimini Street's study suggests that more preparation is needed. Before committing to system updates, businesses should examine their existing processes and objectives. The report reveals that those surveyed estimate 144 hours a week could be better utilised, hours currently wasted on low-value management and maintenance tasks for core business IT systems.
"The research indicates that there is significant room for improvement when it comes to modernisation programmes," said David Rowe, EVP, Global Transformation and Chief Product Officer at Rimini Street. "Many organisations believe they can – and should – extract greater ROI out of their existing core systems."
Rather than allowing vendors to dictate the path of their software updates, Rowe suggests that organisations can achieve better results by designing their own strategic roadmaps, innovating around current systems and outsourcing maintenance tasks. The successful adoption of such a strategy, revealed the report, would see leaders strike a more effective balance between system modernisation and significant business objectives such as growth, cost control and profitability.
While 66% of surveyed individuals are open to more innovative approaches to IT management, focusing too heavily on boosting profit margins can defer innovation efforts. The next 12 months, the survey reveals, will see CIOs and CTOs aiming to modernise core systems, keep existing IT technology operational, and manage IT budget constraints. Long-term success may depend on how well these businesses are able to identify and eliminate inefficiencies and streamline processes.
With up to 60% of respondents reporting a degree of dissatisfaction with their primary IT system provider, partnering with expert third-party service support could provide a high-ROI solution. With the right assistance, businesses could optimise current systems, pursue further growth and profitability, and divert resources towards vital innovation projects.
