Leadership issues, lack of IT skills and concerns about information security are holding back African businesses from adopting technology that could help them grow, according to a new IBM study, BizTechAfrica reports.
IBM today announced the results of a new study, “Setting the Pace in Africa: How IT
leaders deliver on the potential of emerging technologies.” Results are based on a survey of 180 IT leaders across 29 industries in Egypt, South Africa, Kenya,
Nigeria and Morocco. It was conducted by IBM’s Center for Applied Insights, in collaboration with the IBM Center for CIO Leadership.
The study found that nearly 87 percent of African IT leaders rank new technologies such as analytics, cloud, mobile and social media as critical to business success, but only 53 percent are pushing forward with adoption.
IBM’s survey findings confirmed that 36 percent of the African respondents embracing emerging technologies could be considered “pacesetters” among their peers in terms of their focus on prioritizing and rapidly adopting technologies.
African economies are expected to continue growing fast over the next decade. Sectors expected to grow include retail-wholesale, retail banking, telecommunications and tourism. This represents an enormous opportunity for African businesses – if they are prepared to seize it, according to BizTechAfrica.
But lack of technology adoption is preventing many African businesses from achieving growth and progress, the IBM study found. “The primary reasons for not moving on adoption were a need for technology leaders to play a greater role in strategic business leadership, a lack of IT skills development across the continent, and information security concerns,” said IBM General Manager for East Africa, Nicholas Nesbitt.
African businesses identified as pacesetters in the IBM survey take a different approach to addressing IT concerns compared to their peers. For example, 85 percent of pacesetters link IT investments to business outcomes compared with 67 percent of their peers; 79 percent of pacesetters use metrics and scorecards to assess IT risk compared to 46 percent of their peers; and 46 percent of pacesetters develop IT skills to meet future business needs compared to 26 percent of their peers.
Forward-thinking African companies have found ways to empower their IT leaders through a cultural shift, the report said. Pacesetters garner management support and view IT as integral to business strategy, not just a supporting player in the company’s success. This level of internal engagement requires clear, open communication and collaboration between IT leaders and their business peers, something the pacesetters do 40 percent more often, according to the IBM survey, BizTechAfrica reports.
“Africa is characterised by an innovative mindset, and a billion-strong market ready for
innovative products and solutions,” Nesbitt said. “Regardless of individual realities, the
opportunity for business growth through IT adoption cannot be denied. The pacesetters in
Africa’s business community have seen the potential and taken action to help them realize
it. With the right strategy, their peers can follow suit.”