Report: Chief digital officer appointments set to rise

Latest Cognizant research on digital transformation finds 77 per cent of Australian companies are either already undergoing digital transformation or kicked off initiatives this year

More than half of Australian organisations plan to have a chief digital officer in place within the next two to three years to manage the transition to the “new normal” of digital-first business, a new report claims.

Cognizant’s latest research, Asia Rising: Digital Driving, found 37 per cent of companies across the region are already undergoing digital transformation, with a further 59 per cent planning to embark on the transformation journey within 12 to 24 months.

In Australia, 77 per cent of companies are either already undergoing format digital transformation or kicked off a plan this year to do so, compared to the regional average of 70 per cent. In addition, 60 per cent of Australian respondents believed digital will change their company’s business model fundamentally over the next five years.

For most, digital equates to growth: 63 per cent said digital will help improve new products and services, while 60 per cent saw it as increasing revenue. More than half (58 per cent) also said improving sales, new customers, marketing and customer relations was a top goal for digital transformation.

The report estimated digital transformation will unlock an incremental US$20.1 billion in revenue opportunity for Asia-Pacific companies by 2017. In Australia, companies were found to already experiencing an average 6.7 per cent revenue growth as a direct result of their digital transformation efforts, a figure that’s expected to reach 11.2 per cent by 2017.

To tap into the opportunity as well as overcome the challenges, 60 per of companies surveyed said they planned to appoint a chief digital officer in the next two to three years, including 53 per cent of those in Australia. Core responsibilities expected of the role include planning and managing digital transformation (76 per cent), developing new products and services related to digital transformation (64 per cent), building consensus within the organisation (60 per cent), and connecting digital investments to enterprise business goals (06 per cent).

What was also notable from the report was who’s executing the strategy now in Australia. While 93 per cent of local respondents said CIOs and CTOs are making and executing digital plans, 86 per cent said the CMO is becoming heavily involved in digital strategy, against a regional average of 72 per cent.

Core reasons cited for digital transformation across the region are rising customer expectations (65 per cent), increased competition (57 per cent) and demanding employees (55 per cent). In fact, nearly two-thirds of respondents said the sales/marketing/customer service process will be the most impacted by digital change, followed by new product/service development (60 per cent).

In addition, 64 per cent were concerned about the inability to respond fast enough to changes in the marketplace and new developments, and 63 per cent said a major threat was inability to meet the speed of technological change, as well as gathering, understanding and acting on all customer, product, company and employee data.

Yet despite all these efforts so far, 44 per cent still viewed transformation as an as-needed or adhoc procurement and tactical approach, rather than an implementation of a strategic vision.

The report also found a technology-led approach to transformation is more prominent in Australia, with mobile apps for customers (74 per cent), advanced analytics (73 per cent) and cloud technology (66 per cent) cited as the top digital transformation initiatives planned for the next 12-24 months.

The Cognizant report was based on a survey of 314 senior business and technology decision makers between May and July 2015 across Australia, India, China, New Zealand, Singapore, Malaysia, Indonesia and Hong Kong.

More stories on digital transformation:

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Red Agency YouGov Galaxy Report, February 2019 Predictors Study. https://redagency.com.au/re...

Vanessa Skye Mitchell

DNA-based marketing: The next big thing?

Read more

RIP holden

Max Polding

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Where does the claim that 2 million Australians have tested come from ? Anecdotal information suggests that this is way off the mark.

David Andersen

DNA-based marketing: The next big thing?

Read more

Thank you for the info , being part of a digital marketing agency in kerala , this proved handy and get to know with upcoming trends. htt...

Dotz Web Technologies

Predictions: 9 digital marketing trends for 2019

Read more

So who then is correct? The Research or The skilled Digital people.

Anene

Report reveals Australia faces digital skills shortage

Read more

Latest Podcast

More podcasts

Sign in