Compete and thrive in the digital economy

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Author: Steve O’Donnell, Managing Partner, IBM NZ Global Business Services

If there’s one thing that this pandemic has shown us, it’s that businesses need to adapt, scale, and make smarter decisions if they want to survive or thrive.  

The lockdown forced many organisations to accelerate their digital strategy and pivot to keep up with the changing needs of both their staff and their customers. But what happens next? How can businesses make sure they stay competitive in a post-pandemic world?

The Cognitive Enterprise™

New IDC research reports that “In this new world, organisations must first increase their business resiliency then shift into the transformational and disruptive maturity categories to compete.” But two-thirds of NZ businesses have yet to reach a transformational or disruptive level of digital maturity, according to the same report. 

While many organisations took initial steps to invest in resilience, critical decisions still need to be made to truly transform. As artificial intelligence, blockchain, automation, Internet of Things, 5G, and edge computing become pervasive, the “outside-in” digital transformation of the past decade is giving way to the “inside-out” potential of data exploited with these exponential technologies. We call this next-generation business model, the Cognitive Enterprise. 

Take, for example, Fine Wine Delivery, a family-owned New Zealand business that prides itself on helping customers find their perfect wine. They migrated more than 20 years worth of tasting notes to the IBM Cloud and IBM Watson translated the knowledge through a smart search and a virtual assistant for their growing customer base. These initial uses of Artificial Intelligence (AI) helped to empower every customer with the knowledge and skill to find the perfect drop. More recently, they created a one of a kind Flavour Wheel that uses IBM’s Watson AI platform to recommend the ideal vintage based on their customers’ favourite flavour profiles. As a result, although many retailers are struggling, Fine Wine Delivery has seen a 70% increase in online purchases in an already significant online business.

The journey to hybrid cloud

The hybrid cloud model is emerging as a key enabler in digital transformation, and the gold standard for IT architecture as enterprises reimagine their business models to more effectively participate in the digital economy. Although there are significant benefits from adopting hybrid cloud, such as cost efficiencies and better risk management, only 19% of NZ businesses had deployed this model enterprise-wide prior to COVID-19. A focus on accelerating hybrid cloud migration is essential for businesses that want to stay ahead of the game and embed innovation into their DNA. 

Continue your transformation

Amidst the uncertainty of 2020, there are many exciting opportunities for New Zealand businesses to emerge stronger and smarter than ever before by adopting hybrid cloud and accelerating their digital transformation. To learn more about how your organisation can continue its journey towards becoming a Future Enterprise, download the full IDC report now.