Report reveals that despite recognising the importance of mobile technologies, many Australian organisations lack the approach needed for efficient implementations
SYDNEY; MAY 5, 2014 – Australia’s enthusiasm for digital technologies such as mobility continues to grow, with 71 percent of Australian executives rating it as one of the top five priorities for the coming year, according to a study by Accenture (NYSE:ACN). Outpaced only by China, Australian executives overwhelmingly view digital technologies as a strategic investment that can help them grow and engage with customers.
According to the Accenture Mobility Insights Report 2014, Australian organisations plan to spend considerably more on mobility in the coming year than on other digital technologies, with a quarter expecting to dedicate at least 26 percent of their IT budget to mobility, and a further 5 percent expecting to allocate at least half of their IT spend. Additionally, 30 percent of Australian organisations plan to spend at least US$30 million on mobile capabilities in the next two years—more than organisations in any other mature market except the United States.
Despite this, many Australian organisations continue to struggle to make progress in their mobility initiatives. One way to measure this is through return on investment (ROI), which while not the end goal itself, can show how effectively enterprises are utilising digital technologies – specifically mobility in this instance – to reach their ultimate business objectives. Only 16 percent of Australian respondents have achieved over 100 percent ROI for their mobility implementations in the last two years, while just under half (49 percent) reported less than 50 percent ROI. As mobility is an enabler within enterprises, a lower ROI offers a good indication of which businesses should be looking to make improvements for greater progress.
“One of the biggest challenges to progress is the lack of formal, enterprise-wide mobility strategies, which in Australia is the case for 39 percent of organisations,” said John Cassidy, Accenture Australia’s Mobility Lead. “If we look to the United States, UK and China we can see a direct connection between investing in a formal mobility strategy, and achieving greater ROI. For Australian organisations to truly harness the potential of mobility, they need to make investments at a strategy, organisational and operational level.”
For most organisations, this requires leadership from the top, however according to the report only 35 percent of Australian CEOs were involved in developing their organisation’s mobile strategy. Furthermore, whilst the number of businesses developing a formal, enterprise-wide mobility strategy is decreasing - 39 percent in 2014 compared to 65 percent in 2013 - a greater percentage (47 percent) are creating multiple strategies for different business units, which indicates that investments are being made in isolation, as opposed to being integrated into the overall enterprise strategy.
The report also documented that Australian organisations are struggling to develop formal metrics for evaluating the effectiveness of mobility, with only 12 percent of respondents successfully doing so, compared with 24 percent of those in the United Kingdom and 23 percent in China.
“Our survey clearly shows that there is considerable opportunity for Australian organisations to get more out of their mobility initiatives,” said Cassidy. “Mobility success takes a strong dedication of resources and attention, as well as genuine engagement by the top management of the organisation. Organisations that are committed to building robust mobility capabilities are more likely to benefit from the promise of this increasingly important growth-generating technology, and take greater strides towards becoming a digital business.”
Accenture surveyed nearly 1,500 C-level executives from organisations across 14 countries for the Accenture Mobility Insights Report 2014, including over 120 from Australia.
Accenture’s mobility study was designed to explore how companies are applying digital technologies—especially mobility—to help improve various aspects of their business. Accenture conducted an online survey of senior executives between December 2013 and January 2014. A total of 1,475 executives completed surveys. Executives’ titles spanned the C-suite, with the majority serving in a technology-related role. Respondents’ companies represented 10 industries and 14 countries, and were predominantly large: One-third have annual revenues of more than $10 billion, with 11 percent reporting sales of more than $50 billion. The countries included were: Australia, Brazil, Canada, China, Finland, France, Germany, Japan, Korea, South Africa, Spain, Sweden, UK and USA.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 289,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful organisations, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended August 31, 2013. Its home page is www.accenture.com.
Accenture Mobility, part of Accenture Digital, plans, implements and manages mobility solutions for businesses and public organizations, including developing and implementing enterprise mobility strategies; incorporating applications and managed services; creating and delivering mCommerce solutions; and supplying credible, business ready Connected Product offerings. Accenture Mobility services are based on deep industry insights and technical expertise that helps clients across all industries achieve growth, efficiency and manage a successful transformation as they adopt the tools of a digital business. Find out more by following @mobilitywise and visiting www.accenture.com/mobility.
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