IBM Study Identifies How African Businesses Can Overcome the Technology Adoption Gap
IBM has announced the results of a new
study entitled ‘Setting the pace in
Africa: How IT leaders deliver on the potential of emerging technologies’, which found that
while nearly 87 percent of African IT leaders rank new technologies such asanalytics, cloud, mobile and social media as being
critical to business success, only 53% are pushing forward with adoption.
IBM’s survey findings also confirmed
that 36% of the African businesses embracing emerging technologies could be
considered “Pacesetters” amongst their peers in terms of their focus on
prioritizing and rapidly adopting technologies. The survey of 180 Africa-based
IT leaders across 29 industries in Egypt, South Africa, Kenya, Nigeria and
Morocco was conducted by IBM’s Center for Applied Insights, in collaboration
with the IBM Center for CIO
Leadership*.
African economies are expected to
sustain high levels of economic growth over the next decade, boosting
consumer-facing industries by an estimated US$400 billion by 2020. Sectors
pegged for growth include retail/wholesale, retail banking, telecommunications
and tourism.1 This represents an
enormous opportunity for African businesses – if they are prepared to seize it.
However, the IBM study found that a lack
of technology adoption is preventing many African businesses from achieving
growth and progress. “The primary reasons for not moving on adoption were a
need for technology leaders to play a greater role in strategic business
leadership, a lack of IT skills development across the continent, and
information security concerns,” said IBM General Manager for East Africa,
Nicholas Nesbitt.
African businesses identified as
Pacesetters in the IBM survey take a very different approach to addressing IT
concerns. For example, 85% of Pacesetters link IT investments to business
outcomes, compared with 67% of their peers. 79% of Pacesetters use metrics and
scorecards to assess IT risk, compared to 46% of their peers. 46% of Pacesetters
develop IT skills to meet future business needs, compared to 26% of their
peers.
Forward-thinking African companies have
found ways to empower their IT leaders through a cultural shift, the report
adds. The Pacesetters also garner management support and view IT as integral to
business strategy, not just a supporting player in the company’s success. This
level of internal engagement requires clear, open communication and
collaboration between IT leaders and their business peers, something the Pacesetters
do 40 percent more often, according to the IBM survey.
“Africa is characterised by an
innovative mindset, and a billion-strong market ready for innovative products
and solutions,” Nesbitt said. “Regardless of individual realities, the
opportunity for business growth through IT adoption cannot be denied. The
Pacesetters in Africa’s business community have seen the potential and taken
action to help them realise it. With the right strategy, their peers can follow
suit.”
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