Intelligent CIO Africa Issue 11 | Page 76

EDITOR’S QUESTION CHARL ENNE, BUSINESS INNOVATION EXECUTIVE, OUTSYSTEMS SA “The most important thing that African companies need to consider going forward is the customer experience.” A major challenge facing African companies is the legacy culture and technology factors hampering their ability to accelerate digital innovation. A shortage of skilled technical resources, growing development backlogs and ever- increasing budget constraints mean that companies are forced to focus valuable time and resources on day-to- day operations and maintenance, rather than on identifying and capitalising on new business opportunities through digital products. Digital innovation is ultimately driven by the consumer. Consumers across the continent are exposed to innovative new products and services offered by global companies, that provide a seamless customer experience. The result is a consumer mindset that progresses at a faster rate than local companies can keep up with. As a result, there is a growing gap in the African market – larger than 76 INTELLIGENTCIO what is seen in the US or Europe – between the demand for new digital customer experiences and businesses’ ability to supply it, making enterprises ripe for disruption. Many Fortune 500 companies have disappeared because of their inability to meet this demand, and it is no different for local companies. Unless they adapt quickly, and embark on a digital transformation journey, their extinction is closer than they can imagine. The most important thing that African companies need to consider going forward is the customer experience. Because customers are increasingly interacting with digital products or platforms on a daily basis, companies need to find ways to become a part of those interactions. This requires a shift from being organisational or process- centric (inside out) to customer-centric (outside in), to mould business models around how customers want to engage with the business. There is a need to start looking at business models as something that is malleable, to look at where the threats lie and how these can be turned these into opportunities by unlocking new value for customers, partners and themselves. Disruption is not about doing the same thing with a few added improvements; companies might sometimes have to discard models, processes or technologies that they have invested a lot of time and resources into, in order to take advantage of a bigger opportunity. They need to look at how they can disrupt themselves, before they are disrupted by the competition. Gearing a business up to disrupt, rather than be disrupted is not about the infrastructure. Companies need to flatten out their organisational structures, remove hierarchies and treat employees as key stakeholders in digital transformation efforts. This can be achieved by creating groups around products, rather than skill sets to enhance collaboration and drive innovative thinking, enabled by mixed skill sets. Local businesses need to look toward employees with new age digital skills – not exclusively about technology – but rather creative problem solving, user or customer experience thinking and pitching ideas to fundraise internally. The more traditionally associated skills include software programming, continuous prototyping, delivery and testing. n “There is a growing gap in the African market . . . between the demand for new digital customer experiences and businesses’ ability to supply it.” www.intelligentcio.com