Few companies will dispute the value of IT investment, especially in a world where many evolving technology trends are granting businesses opportunities they previously didn’t have access to.
However, the quest to secure and install the technology a businesses needs is often mired in buzzwords, which can make it difficult to work out exactly what is required or how solutions will actually affect employees, clients or customers.
The term disruptive technology is one that’s becoming increasingly common, with many organisations around Australia investigating the way these trends can benefit their operations. In many cases, it’s essential that these companies enlist the services of a managed solutions provider that can offer clarity among the buzzwords.
What is disruptive technology?
The term ‘disruptive technology’ was most likely first coined by Joseph L. Boyer and Clayton M. Christensen in a 1995 article for the Harvard Business Review. In the piece, the pair defined the trend as those systems and products that don’t gel with accepted mainstream uses, leading to them finding favour in innovative applications.
An article published by Forbes in September detailed some of the modern technology trends that can be considered disruptive while also demanding attention from businesses. The authors focused on the Internet of Things (IoT) as one of five technologies worthy of IT investment.
The reason the IoT in particular is considered disruptive for companies is that it could reduce the reliance on desktops and other traditional devices as a growing number of other components will support their own computing power.
While the trend is still gathering steam, businesses in industries where the IoT is expected to have the most notable effect – such as manufacturing – could begin to consider IT networking expenditure, especially as bring-your-own-device programs grow in popularity.
How are Australian businesses responding?
Currently, businesses are making an effort to embrace disruptive technologies where relevant, especially with the success of tech startups illustrating the value of reacting quickly to new opportunities.
However, PricewaterhouseCoopers (PwC) discovered a significant proportion of Australian companies are still hesitant to adopt technology solutions that fall into this category. According to the firm, international companies are recording higher rates of adoption than their Australian counterparts.
PwC Partner and Digital Services leader John Riccio believes this is likely due to a difference in business competitiveness for Australian companies.
“A lot of this has to do with the lack of fierce competition global businesses are used to, which in turn drives disruption,” he explained.
“Australia occupies a fairly unique position globally: the market here isn’t as big as the UK or the US and our industries are generally protected by higher levels of regulation and legislation.”
The result is that Australia’s Digital IQ, as defined by PwC, ranks lower than the global average. The standard set by the firm’s results list the international standard at 77.2, with Australia coming in at 75 points.
What do Australian businesses need to know?
Aside from enlisting the services of professionals, there are a range of other variables for businesses to keep in mind when investigating IT expenditure. McKinsey & Company identified the key trends businesses should be focusing on when planning for an investment in disruptive technology.
As with most expenditure, it’s essential to prepare a budget that doesn’t constrain this expansion or ignore long-term costs.
The firm also noted that many organisations are dedicating significant internal resources, particularly with regards to the personnel required to merge a company’s demands with the services of a solutions provider.
For a complete guide to your next IT project, contact the team NetCraft to find out how we can be of service.