Intelligent CIO Africa Issue 10 | Page 75

EDITOR’S QUESTION KEITH FENNER, VICE PRESIDENT, SAGE ENTERPRISE AFRICA AND MIDDLE EAST A frican organisations know that they need to accelerate digital transformation if they are to meet the challenges posed by global competition, new regulations and increasingly demanding customers. However, transforming an established business into a digital enterprise depends on the CEO, CIO and other senior executives overcoming a range of organisational, financial and technical barriers. Here are some of the factors that hold back digital transformation among African businesses: Legacy systems: To create a solid foundation for digital processes and systems, companies need to modernise their core business applications and automate their business processes; yet they cannot afford to put their operations on hold as they implement complex enterprise resource planning (ERP) suites. New deployment methodologies and cloud solutions, however, can accelerate the implementation of a new business system. A lack of skills: There is a lack of digital skills and talent in Africa, across areas such as cybersecurity, cloud computing and data science. Many organisations’ IT departments have a strong base of legacy IT skills, yet struggle to find professionals with the next generation of digital skills. Addressing these demands requires companies to think about which skills they will access through outsourcing partners, which ones they’ll develop in-house, and how www.intelligentcio.com they’ll manage issues like skills transfer with external vendors. Finding time to innovate: CIOs are struggling to find the time and money to innovate and lead change while ‘keeping the lights on’ and maintaining operational efficiency. The same applies to their teams, who need to find time to innovate and learn on the job, while delivering on existing expectations. Optimisation and automation of IT processes can help larger companies reclaim some of the time they spend keeping the lights on for innovation. Executive vision and buy-in: For organisations to succeed in their digital transformation projects, they need to get buy-in from across the business. IT leaders will need vision and storytelling skills to help the organisation prepare for this change. Cultural barriers: Many large organisations are treating innovation and disruption as separate disciplines because of the challenges of driving change in an established business and securing the right skills. Companies are pursuing a range of strategies to drive innovation in their businesses, ranging from setting up venture capital funds and incubators, investing in tech and digital companies, running innovation challenges and forming strategic alliances with tech companies. Immature technology: Organisations must master the balance between managing the risks of deploying immature technologies and those being left behind by emerging, disruptive trends. The Internet of Things, blockchain, artificial intelligence and machine learning will transform the way we do business over the next five to 10 years, yet they are not quite ready for prime-time deployment. Enterprises should conduct many small proofs of concept to develop best practices and build the organisational capacity and infrastructure for tomorrow’s digital business models. Constant experimentation and innovation are essential if companies are to keep up with the rate of change. n “Transforming an established business into a digital enterprise depends on the CEO, CIO and other senior executives overcoming a range of organisational, financial and technical barriers.” INTELLIGENTCIO 75