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

5 common mistakes to avoid in scalable customer experience

CX is about future-proofing your business by ensuring that your commercial model is always looped into your customers' needs, perceptions, values, beliefs, motivators, and detractors.

Tom Uhlhorn

Founder and strategy director, Tiny CX

5 cornerstones of a strong digital culture

Creating a strong company culture may sound like a daunting task, but it’s actually pretty straightforward. In fact, company culture is created in exactly the same fashion as a religion or democracy. Behaviours created from the organisation’s inception are reinforced over time by leadership, attracting like-minded people and eventually reaching critical mass to become an accepted ‘truth’.

Anthony Stevens

Founder and CEO, Digital Asset Ventures

Should you rebuild your company’s tech stack in blockchain?

The question I get asked most regularly these days is: ‘Do I need to rebuild my company’s systems on Blockchain?’ And the answer, every time, is ‘No, you’re asking the wrong question’.

Michelle O'Keeffe

CEO, Engaging.io

What is your opinion about chatbots serving your customers? My belief is bots are going to be the future of customer service and fulfilme...

Giridhar Prathap Reddy

NAB taps power of AI chatbots for business customer service

Read more

Thanks for writing about chatbots. Definitely bots have the exciting future when it comes to customer engagement, transactional and conve...

Giridhar Prathap Reddy

Deloitte TMT Predictions: AR and mobile crucial for marketing success in 2018

Read more

Hi there! Thanks for this interesting article! I love to read about new technology and software that makes our lives easier. I'm looking ...

Julia Summer

Wartsila overhauls Web platforms to create ‘seamless’ brand experience across all devices

Read more

RE: Sales and marketing SLAs, often the choke point isn't the teams but them getting the data into the tools they want to use with the da...

Ed Fry

Why sales and marketing alignment is more important than ever

Read more

Thank you for the good and very helpful information. It is very interesting. I love all the things you share and see your beautiful creat...

รัตนาวดี ภูมิวรรณ

Former eHarmony marketing chief joins telco startup

Read more

Latest Podcast

More podcasts

Sign in