- 53% of senior executives identify data and analytics as their top investment priority over the next two years
- High costs and skills shortages seen as top challenges that can hinder plans
- Technology is fundamental to transformation, but the most successful transformations put humans at their center
Business leaders are investing in data-driven technologies to make game-changing decision, optimize operation, and create seamless interactions, preparing to enter a new era of data strategy.
This aligns with EY Tech Horizon 2022, a global survey of more than 1,600 senior executives across seven industries, on the role of technology in their transformation plans. More than half or respondents (53%) identified data and analytics as their top investment priority to implement their transformation strategy over the next two years. Combined with a new technology infrastructure of cloud (49%), internet of things (IoT) (42%) and artificial intelligence (AI) (35%), business leaders are laying the digital foundation to help them realize maximum value from their technology investment.
Narisara Phatanaphibul, Consulting Leader, EY Thailand says:
“In Thailand, the implementation rate of advanced technologies has significantly increased. Many companies have invested in data-centric technologies as a differentiator for a competitive advantage.
“Data-driven enterprises can make better business decisions, measure business performance more effectively and improve employee engagement. Even more importantly, they can better understand customer behavior and improve customer experience. Companies with business models that are fundamentally built around data are most likely to grow rapidly.”
While business leaders have a compelling vision of a transformed organization, they are struggling because of several challenges. According to EY Tech Horizon 2022, the top five challenges are the high cost of technology infrastructure (35%), complex security and privacy requirements (27%), the complexity of integrating multiple systems (25%), difficulty upgrading from legacy infrastructure (24%), and the complexity of managing digital ecosystems (21%).
“A key challenge of data centricity is the complexity of connecting and integrating diverse data systems. Business leaders realize the challenge, but it is worth making the necessary changes rather than risk being leap-frogged and becoming obsolete,” Narisara adds.
Humans are the key to driving successful transformation
While data is at the heart of business decision-making, people are the core of a successful digital transformation. As digital implementation is a huge task, companies need a skilled, high-performing technology team to enable a smooth transition. According to EY Tech Horizon 2022, skills shortages are a key constraint on businesses looking to make the leap toward to becoming a data-centric enterprise.
The report showed that the top barriers to securing digital and technology-related skills are ineffective upskilling programs (30%), the struggle to retain existing skilled talent (29%) and inadequate compensation and incentives (26%). Facing a talent shortage, 70% of respondents say that they are focusing on re-skilling rather than hiring.
“Since the existing skills of an organization’s talent pool are unlikely to match the digital transformation requirements, it is inevitable that achieving data centricity will require organizations to build up a suitable talent pool. Upskilling and retention will be at the center of technology-enabled change. However, no model fits all. Building from the organization’s use cases by establishing an embedded and empowered team that blends business and data literacy is a good start. Giving them the mission along with executive support, employees will be learning by doing, which increases their knowledge and develop their skills. So, they will become more digitized, high value, and strategic workers,” says Narisara.
Becoming a data-driven organization takes more than the right business strategy and technology. It is essential for companies to focus on the human element as well as the right technology and for leaders to fully support a data-driven culture.
Narisara concludes “Data strategy will enable an enterprise to leap upward, but the real drivers of a successful transformation are human. In data centric organizations, those who can find a balance between digital technology implementation and human experience by encouraging data literacy and the digital mobilization of the broader workforce will succeed.”
Source: EY Thailand