Deloitte: Few firms investing in new tech

Global organisations have recognised digital transformation as an important strategic plan, but only a handful of them want to invest in new technologies as they prefer new technological adoption to be based on evolution, according to a Deloitte survey.

The survey found the will for digital transformation remains strong, with nearly 94% of respondents agreeing it is a top strategic objective for their organisations, said Narain Chutijirawong, business development director of Deloitte Thailand.

But respondents are not necessarily fully exploring the realm of strategic possibilities made possible by digital transformation, said Mr Narain, noting that 68% of respondents see it as an avenue for profitability.

While supply chain initiatives for digital transformation are a top priority for organisations, most supply chain executives are not involved with decisions about digital transformation investments, he said.

Deloitte conducted a global survey of 361 executives across 11 countries in the Americas, Asia and Europe.

The global survey is focused on manufacturing, power, oil and gas as well as mining companies, examining how and where they are investing in digital transformation in industry 4.0.

For innovation, most companies want an evolution rather than a revolution.

“Companies want to use their existing technology and only few want to invest in new technology,” he said.

While some technology requires replacement of 30-year-old machinery, not all investment has to adopt the same model, where the process takes 2-3 years for change to occur, said Mr Narain.

For example, in mining companies, drones are being used to measure how much coal is being gathered rather than going out to conduct surveys, he said.

But these dilemmas can also be seen as opportunities for organisations to recognise the white space within their operations, and potentially derive more value from their digital transformation investments in the era of industry 4.0, said Mr Narain.

Viney Hora, executive director of Deloitte Consulting, said industry 4.0 has expanded the possibilities of digital transformation and increases its importance to the organisation.

“Most people are thinking of operational improvements for industry 4.0 and allocating more resources to R&D and innovation to break the paradox for digital transformation,” said Mr Hora.

“Basically, it is improvement in productivity, and that i ncludes finding the right talent and training for digital transformation.”

Factors affecting the acceptance of technology are perceived usefulness and perceived ease-of-use, said Mr Hora.

“If a technology is hard to use and not helpful, it is going to fail,” he said.

Mr Narain reiterated that success in technological initiatives is associated with people using the technology and executives are urged to learn new technologies such as the Internet of Things and blockchain.

“Learning programmes offered by companies are vital for digital transformation. Some companies have weekly mentoring sessions to keep senior employees updated with the latest technologies around the world,” he said.