Digital disruption: technology just small part of greater transformational need

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The pace and poignancy of change has certainly heightened in recent years; spurred on by increasingly innovative ways organisations are applying technology.

“One of the biggest mistakes financial service organisations (both private and public) make in approaching digital disruption and transformation is that they focus too much on the technology and its capabilities, rather than on fundamental operational transformation, cautions the head of the premier digital disruption grouping, the Australian Transformation and Turnaround Association (AusTTA).

Adam Salzer OAM, chairman of AusTTA, said today: “Disruption should primarily focus on transformation of the whole organisation. It needs to rethink and recreate its culture and its fundamental processes, not just embrace the technological opportunities.

“Technology is just a means to an end. Not the starting point.

“To meet increasing competition, many established organisations have to rethink their basic the model to provide better and more tailored service that offers consumers significantly better value and greater control.

“Accordingly, changing the internal mentality of senior management and employees regarding the role of the customer and full consumer empowerment should be the focus for management. Too often it is not, as our research identified.”

Research by AusTTA identified a raft of challenges facing organisations. These ranged from the changing business and political environment through changing consumer tastes.

However, the greatest concern is management, be its resistance to change and/or poor leadership. These together concern over two thirds (71%) of respondents.

Other major concerns include availability of hiring good people, then the impact of new technology, as shown in the chart in the attachment.

The survey also found respondents reported that employee resistance – or unawareness of the need to change – is their main barrier. This was followed by management resistance and engaging people to assist with the transformation process, as shown below.

 

 

Mr Salzer said: “It is the internal attitudes and structures of organisations that have to change as disruption is occurring at an industry level and in every operational function. This is what will differentiate organisations that can adapt and embrace the opportunities that are arising every day,” said Mr Salzer.

Read the full paper.

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