Australian organisations lifting technology investment

Business-led IT is creating more value for Australian organisations than ever, according to KPMG Digital Delta Partner In Charge Guy Holland.

Citing results from the 2019 Harvey Nash/KPMG CIO Survey, Holland noted that this year, more Australian technology leaders reported increases in IT budgets under their control than at any time in the last 15 years.

“In my view there are three key pressure points driving this technology investment. Firstly, the rapid emergence of agile start-ups who are leapfrogging legacy business models and systems to give customers what they want — faster, better and cheaper,” Holland said in a blog post.

“Secondly, the breakneck pace of evolution of new technologies such as AI [and the] IoT. And finally, the need for organisations to capture and deploy data and insight to improve their customer interface. Any business that considers reducing its investment in technology and innovation in today’s environment does so at its own peril.”

But Holland also noted that increased technology adoption and investment is creating rising challenges around IT governance, especially in areas including cybersecurity, and giving rise to more use of shadow IT.

Around 70% of organisations across Australia now allow technology to be managed outside of the IT department. In addition, 41% of companies in Australia are not formally involving IT in business-led IT decisions.

“There are serious risks to not including IT. Those organisations that do not are twice as likely to have multiple security areas exposed than those who do involve IT. They are 41% less likely to be ‘very or extremely effective’ at building customer trust with technology, and 12% more likely to have been targeted by a major cyber attack in the last two years,” Holland said.

In light of these influences, the role of the CIO is also evolving. The research found that 65% of technology leaders consider the CIO position to be gaining influence, but CIOs are increasingly taking on the role of change enabler.

“Organisations that put technology in the hands of value-creators while simultaneously connecting the front, middle and back office will be the ones that win in the market,” Holland said. “The future of IT is a customer-obsessed, well-governed, connected enterprise where the CIO and the IT team plays a key role in supporting transformation.”

Image credit: ©stock.adobe.com/au/Melpomene

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