While nearly 87% of African IT leaders rank new technologies such as analytics, cloud computing, mobile and social media as being critical to business success, only 53% are pushing forward with adoption.
These are among the findings of a new IBM study, Setting the Pace in Africa: How IT leaders deliver on the potential of emerging technologies, released yesterday.
The 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 prioritising 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 Centre of Applied Insights, in collaboration with the IBM Centre 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 $400-billion by 2020. Sectors pegged for growth include retail/wholesale, retail banking, telecommunications and tourism. 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, information security concerns and particularly a lack of IT skills development in South Africa,” says Abraham Thomas, country GM of IBM South Africa.
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.
Meanwhile, 79% of pacesetters use metrics and scorecards to assess IT risk, compared to 46% of their peers; and 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% 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,” Thomas says.
“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.”
