Harnessing technology in business

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"Technology is a global mega trend and no industry can claim not to be impacted by technology. One innovation can shift an entire industry as Uber and Airbnb, just two examples, prove," says Dion Shango, CEO of PwC Southern Africa, when he presented the PwC 19th Global Annual CEO Survey at Melrose Arch in Johannesburg recently.

The fourth industrial revolution

The Survey, which reflects the views of nearly 1,500 global CEOs, including South African CEOs, found that technology advances is one of a number of global trends that are expected to transform stakeholder expectations over the next five years. Of the global CEOs 77% expressed the view that technology advances would be the number one trend transforming stakeholder expectations of business over the next five years, with 70% of their South African counterparts also expressing this view.

Nine of 10, or 90% of global CEOs say they were changing how they use technology to assess stakeholder, including customer, expectations and to then deliver against them. CEOs will have to look at their company and ask if its business model is ready, if not, are they prepared to change it or even disrupt their own business model, says Shango. "Whether companies are ready for what many are calling the fourth industrial revolution, no-one can really say. However, CEOs are mindful of the changes and they are making sure they spend their resources in the right places."

A key challenge is understanding today's customers and at the top of CEOs minds is the use of technology to better interpret the complex and evolving needs of customers to better engage with them. Nearly 25% of the CEOs felt that their businesses did not have enough information about what customers want. In this regard CEOs are relying more and more, and placing their faith in, data and analytics to deliver results in this arena.

Leveraging tech for innovation

While generating the greatest return in stakeholder engagement, according to over half of the CEOs, came from R&D and innovation technologies, many businesses are still struggling to achieve innovative-led growth. Technology is critical to innovation, but like the example of Airbnb cited above, often it has to be in conjunction with a business model change.

The Survey says that the winners in the innovation game will be those that harness technology and innovation to deliver products and services that are cost-effective, convenient, functional and sustainable.

In terms of South Africa, he says local CEOS are, generally, highly adaptive individuals. "This does not necessarily translate to being technology adaptive, but I would like to think we are not lagging behind the global norm," says Shango.

The other global trends include demographic shifts, shift in global economic power, resource scarcity and climate change and urbanisation.