NZ firms need to invest more on CX and data analytics: PwC

2017 Digital IQ survey highlights what companies have to aim for if they want to succeed in the digital age.

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The ability to create great human experiences will become an even greater source of competitive advantage as emerging technologies such as AI and IoT define the next wave of technological disruption and the way people interact with machines.

Kris Nygren, PwC NZ

PwC New Zealand’s 2017 Digital IQ Survey reveals that when it comes to digital investments, only 6 per cent of Kiwi firms are thinking about creating better customer experiences while 76 per cent are focused on growing their revenues.

“New Zealand businesses are struggling to put people and data together at the centre of their digital transformation. Instead, they’re focused on increasing revenues and making improvements to their products and services. However, now more than ever, putting the customer at the centre of their digital strategies will be key to unlocking the value of their investments,” says PwC partner Kris Nygren.

“It’s also a question of balancing multiple priorities – 44 per cent of our respondents said their most important digital initiative over the next year is to re-imagine their product and service offering.

“On the other hand, only 14 per cent are prioritising enterprise transformation and 18 per cent are focusing on the customer experience. There are clearly some missed opportunities here,” says Nygren.

The New Zealand findings were taken from the survey of over 2000 global business leaders.

Digital transformation is slowly making its way into organisational strategies with half of respondents indicating they have integrated their digital strategies into their corporate strategies (compared to 70 per cent globally).

Data and analytics is an area we’re really seeing local businesses lagging behind their global counterparts with only a third saying that they’re making analytics a priority, compared to 44 per cent globally, says Nygren.

A truly world-class data and analytics function isn’t just about investing more money though, it’s also about taking a human centred approach to developing an analytics function - from how you engage the business, through to how you prioritise what the analytics function does.

“We believe that the ability to create great human experiences will become an even greater source of competitive advantage as emerging technologies such as artificial intelligence and internet of things define the next wave of technological disruption and the way people interact with machines,” says Nygren.

Combining human centred design with a deep understanding of data and analytics is the secret sauce for a successful digital organisation

8 emerging technologies

PwC has identified eight essential technologies that will have the greatest impact over the next few years: artificial intelligence, virtual reality, augmented reality, blockchain, Internet of Things, drones, robotics and 3D printing

When asked which of these technologies they are most comfortable with, the Internet of Things (IoT) was by far the most popular.

A third of the respondents said they were struggling to integrate new and existing technologies and data, compared to 22 per cent internationally.

It’s only through a deep understanding of the disruptive potential of these technologies that companies can plan for these changes.

As a result, many are turning to external partners to help them implement new technologies in their organisation. While New Zealand companies are clearly struggling to master emerging technologies, it isn’t surprising: these technologies are emerging for a reason, the report states.

Technology like blockchain is only now seeing its first commercial applications, but that doesn’t mean companies can afford to ignore its disruptive potential.

PwC recommends businesses to prioritise an emerging technology strategy.

These technologies are tomorrow’s business imperative, it states.

Companies have to be investing time in testing these technologies and building knowledge and awareness within their business.

These technologies will reshape reshape industries in ways that we can’t predict now, says PwC. “It’s only through a deep understanding of their disruptive potential that companies can plan for these changes.”

As well, the report points the need to ‘bring people and data together’.

“Combining human centred design with a deep understanding of data and analytics is the secret sauce for a successful digital organisation.

“It’s a combination that no company is getting right, but it’s a marriage of skills and perspectives that companies have to foster if they want to be successful in our digital business future.”