Fujitsu’s digital transformation pact shows skill gaps in the AU workplace

Customer expectations is the biggest drivers of digital transformation while the attitudes and behaviors within an organisation are the most important criteria for achieving digital success.

These are two of the main findings from Fujitsu's latest report, The Digital Transformation PACT, which shows that realising digital transformation is about much more than just technology.

Mike Foster, chief executive officer of Fujitsu Australia and New Zealand, says it is no surprise that the results of the survey show that customer expectations have a strong influence as a driver for digital transformation.

1625 global business leaders, including 150 Australian respondents, took part in Fujitsu's report which outlines the challenges companies face when delivering across four elements: People, Actions, Collaboration and Technology (PACT).

Over 70% of respondents identified a clear lack of digital skills within their business, while, surprisingly, 80% of respondents says the skills gaps in their organization is the biggest hindrance to cyber security.

Within three years, artificial intelligence (AI) is expected to transform the kinds of skills required across industries, with over 75% of Australia businesses concerned about their ability to adapt in this area.

Businesses worldwide understand the importance digital transformation. 46% of businesses have already implemented transformation projects while 86% say they are planning for the impact of technology on their business beyond the next 12 months.

However, organisations continue to face challenges across the four pillars of PACT.

Foster adds, "It is also clear that organisations worldwide including Australia are feeling the need to ramp up their skillset across all areas of digital in order to stay competitive.

"We are seeing a strong interest in adoption of co-creation techniques used for developing digital projects and organisations are clearly seeing the benefits of strategic partnering as a means of addressing the skills gap.

When considering their approach to the people involved in digital transformation, the vast majority of business leaders (90%) are taking steps to increase their access to digital expertise, with 70% admitting there is a clear lack of digital skills within their organisation.

Going forward, skills will continue to be a key business issue; 93% say upskilling staff will be vital to their organisation's success in the next three years, while 83% believe artificial intelligence will transform the skills needed by 2020.

In terms of actions, which refers to the processes and behaviors needed to make digital transformation work, 90% of respondents say their organisation has a clearly defined digital strategy, while 83% are confident that the rest of the business knows what it is.

However, three quarters (74%) say that projects are often undertaken that aren't linked to the overarching business strategy, while 72% say shadow digital projects are the only way parts of the organisation can complete meaningful innovation.

Crucially, two in three (66%) say the cost of failure has put them off future digital transformation.

Business leaders are taking positive steps in collaboration. Most businesses undertaking or planning to undertake co-creation projects (63%), with partners including technology experts (64%) and existing customers (42%).

Surprisingly, 79% would even be willing to share sensitive information as part of these co-creation projects.

When it comes to technology, business leaders are planning to implement a wide range of systems.

In the next 12 months, over half are planning to introduce cyber security solutions (52%) or the Internet of Things (51%), with cloud computing (47%) and artificial intelligence (46%) following close behind.

Business leaders are aware of the disruptive impact of technological change. 86% say the ability to change will be crucial to their survival in the next five years.

Foster continues, "A balance of the four vital ingredients - People, Actions, Collaboration and Technology - is essential for organisations to thrive in the digital era.

"While we need to keep up with the pace of technological change, for success it is essential to have skilled people, supported by a culture of innovation.