A recent survey in Australia reported 88% of businesses seeing digital startups as a threat with 63% already affected, and 57% of leadership were unsure of what their industry will look like in three years time. But I disagree that simply investing in IT infrastructure and digital skills is going to solve this problem.
Simply spending more on IT without clear direction isn’t going to transform a business into a digital leader.
In research we commissioned (Leading Digital Business Transformation) to look at the factors that differentiated digital leaders from the laggards, three distinct findings were:
- Digital disruption is a business challenge, not an IT problem, so the CEO needs to lead,
- Customer experience is the guiding light by which to set all strategy,
- Organisational alignment and a culture of customer-centric innovation are required to maintain a leadership position.
I believe that those businesses who focus on their customers, and truly listen to what they're asking for, will invariably do better than businesses that simply focus on making digital mousetraps.
Start-ups and entrepreneurs are some of the largest contributors to new jobs and innovation in Australia, according to the Australian Government’s National Innovation and Science Agenda. But, recent studies have found that digital start-ups pose as a threat to local businesses. A new study by Dell Technologies found that 88 per cent of Australian businesses believe digital start-ups will pose a threat to their organisation either now or in the future, propelling innovative companies forward or accelerating the demise of others. With the digital crisis looming and competition from digital-born start-ups, nearly one in two (45 per cent) global businesses surveyed said they fear they may become obsolete in the next three to five years.