Digital transformation will add around $45 billion to Australia's gross domestic product (GDP) by 2021, according to new research by Microsoft and IDC.
The study, which interviewed 100 decision makers at mid- to large-sized enterprises in the country, found that the growth comes from digital products and services and represents a 0.5% annual growth rate.
Microsoft asked companies about both the benefits and challenges associated with transformation and found that the top benefits were primarily financial, including expected:
- improvement in profit margin
- improvement in productivity
- cost reduction
- increased revenue from new products and services
- increased revenue from existing products and services
- improved customer advocacy and loyalty
Microsoft says that these organizations will see at least 40% improvements tracked in each of the key benefits identified by 2020.
As far as the challenges, survey respondents echoed a theme commonly heard with transformations -- that the people challenge is as great as the technology challenge, if not more so. The top four cited challenges, in order, were a lack of skills and resources, siloed and resistant culture, lack of advanced analytics to develop actionable insights and a lack of thought leadership to drive digital transformation. (See Culture Hardest to Transform – Sigma CTO.)
Microsoft is using the study to urge organizations to accelerate their digital transformations and become leaders, as well as to recruit the best talent with a focus on digital. Respondents said that 83% of jobs will be transformed in the next three years due to digital transformation, with 54% "redeployed to higher value roles or reskilled to meet the needs of the digital age."
"Equipping the nation to succeed in the digital age -- and ensuring all Australians benefit from it -- must be a national priority if Australia is to remain competitive and maintain its record-breaking 26 years of economic growth," Steven Worrall, managing director of Microsoft Australia said in a release on the study. "Employers across all industries need to commit to helping workers prepare for the digital age."
— Sarah Thomas, Contributing Editor, Telco Transformation