Digital Transformation Tipped To Add $45bn To Australian GDP By 2021
Microsoft and IDC Asia/Pacific have launched the results of a joint study which estimates that digital transformation will increase the growth rate of Australia’s gross domestic product from three percent to 3.5 percent annually, potentially adding an estimated $45 billion to GDP by 2021.
The findings are part of a report, Unlocking the Economic Impact of Digital Transformation in Asia Pacific, which estimates that digital transformation will increase GDP for the region by 0.8 percent over the same period.
The report does not break down contributions to the growth for Australia, but across the region it estimates that, by 2020, organisations should see at least 40 percent improvements in every one of the key benefits identified.
These include a 1.5x improvement in profit margin; 1.4x improvement in productivity; 1.5x cost reduction; 1.8x increased revenue from new products and services; 1.7x increased revenue from existing products and services; and 1.8x improved customer advocacy, loyalty and retention.
The report identifies the top challenges to digital transformation as being lack of skills and resources; siloed and resistant culture; lack of advanced analytics to develop actionable insights; – and lack of thought leadership in driving digital transformation across the nation.
Key emerging technologies, in order of importance, are said to be AI/cognitive/robotics; Internet of Things; next-gen interfaces; mixed VR/AR; and blockchain.
Respondents in Australia believe that 83 percent of jobs will be transformed in the next three years due to digital transformation, with 54 percent of workers redeployed to (hopefully) higher value roles or reskilled to meet the needs of the digital age.
The study was conducted with 1560 business decision makers – including 100 in Australia – in mid and large-sized organisations across 15 economies in the Asia-Pacific region.