A majority of chief information officers (75 per cent of the respondents) feel the need for increasing the tech budget and driving businesses toward innovation and digital platforms like artificial intelligence (AI), machine learning (ML) and cloud, according to a survey report by Grant Thornton Bharat and Dynamic CIO.
On organisations adapting to their digital transformation journey, the survey showed that 31 per cent of organisations are at the strategic stage (roadmap for digital tech and investment in key technologies is ready), followed by 30 per cent at the converged stage (targeted team has been set to guide the business on the strategic path towards transformation). The two top drivers for the adoption of digital technologies are reduced costs and improved efficiency (27 per cent), and gaining a competitive edge and enabling frontline business (27 per cent).
The report, titled ‘Unlocking innovation: Breaking through inertia’, said technology creates powerful business opportunities and contributes to the increase in skill gaps. According to the survey, 32 per cent respondents cited the lack of trained tech talent as a major deterrent to the digital transformation journey.
“To effectively deal with this problem, 70 per cent of organisations are running periodic assessments to upskill talent to become future-ready. More than 50 per cent of organisations were awarding various non-monetary benefits to their employees for bringing in new ideas, compared to 37 per cent of organisations that were awarding monetary incentives,” it added.
Jaspreet Singh, clients and markets leader (advisory services) of Grant Thornton Bharat, said, “The commitment of senior management tops the list as the main lever for change in digital projects. According to the survey, 80 per cent of CIOs and tech leaders say they are driving their companies’ innovation efforts for sustainability and growth as they are responsible for high-powered initiatives. With nearly three-quarters of organisations expecting to have an excellent innovative capability in the next two years, CIOs should develop a methodical approach to innovation that can lead to differentiated growth.”
The survey report, launched at DynamicCIO’s flagship three-city summit and awards, Enterprise Innovation Summit (EIS) 2022, also revealed that 82 per cent of responding organisations aim to develop consistent processes for the reinforcement of change in digital transformation projects.
Not sharing the exact number of executives involved in the survey, the report said the Grant Thornton Bharat’s Innovation Study 2022 surveyed “numerous tech, innovation and business leaders” to understand their approaches to changing digital space and innovation and developed clear recommendations for taking innovation, growth and sustainability from ideation to industrialisation.
Raman Shenoy, partner (dGTL) at Grant Thornton dGTL, said, “With change happening at an accelerated pace in the digital era, the current market mantra is to digitise or die, and companies are rushing to stay up to date in adopting new technologies to add a competitive edge to their operations.”
According to the survey, 70 per cent of change management efforts fail due to employee resistance and a lack of management support. It hints at the fact that conventional change management strategies may not be the best fit for this digital era.