Striking a Balance: How Businesses Can Navigate Digital Transformation in a Cost-Conscious Environment
Digital transformation is no longer optional for businesses. However, achieving it in a way that balances cost-effectiveness with innovation remains a challenge. This article explores the key issues companies face and offers insights from industry leaders on navigating this complex landscape, all drawing from a captivating panel discussion at the 2023 NZ CIO Summit.
The pressure to get more value
Boards are demanding more value from digital investments. Gone are the days of throwing money at the latest technology and hoping for the best. Today's focus is on ensuring these investments are sustainable and deliver tangible benefits.
The Balancing Act: Cost vs. Innovation
The challenge lies in finding the right balance. Businesses need to be prudent with costs, especially in an increasing complex digital environment. However, they also can't afford to neglect innovation, which is crucial for staying ahead of the curve.
Risk Management: A Key Consideration
One approach highlighted in the discussion is to frame decisions through a risk-reward lens. Companies should carefully consider the potential consequences of not taking action compared to the benefits of investing in digital solutions. This helps prioritise initiatives and ensures resources are directed towards areas with the most significant impact.
Technology as an Ally
Technology itself can play a significant role in tightrope walking. By leveraging automation and other digital tools, businesses can find efficiencies, reduce costs, and mitigate risks. The discussion also highlights the need for a shift in perspective. Traditional business cases may not adequately capture the value of digital transformation. Redefining these metrics and ensuring CFOs understand the long-term vision are crucial steps.
Continuous Investment is Key
Digital transformation is not a one-time event. It requires ongoing investment and nurturing. Successful initiatives are rarely built overnight and often involve a continuous stream of improvements. This can challenge traditional budgeting processes, as the focus shifts from upfront costs to long-term value creation.
The article incorporates insights from industry leaders like Ange Nash from AA Insurance, Jo Hilson from Tourism Holdings Ltd, and Nikhil Ravishankar from Air New Zealand. Their experiences emphasise the importance of risk management, leveraging technology, and building a balanced portfolio of digital initiatives that address both short-term needs and long-term innovation. Check out the full panel discussion from the 2023 New Zealand CIO Summit below.
The conversation continues in 2024...
Economic challenges persist in 2024, be part of the discussion of digital transformation in a cost-conscious environment this August. Here are some sessions not to miss at the 2024 New Zealand CIO Summit, where you'll have the opportunity to engage with world-leading practitioners, experts and thought leaders to help chart your course for success in the ever-evolving digital landscape.
 | The Economic Outlook - Building Resilience for a Better Future Dr Ganesh Nana, Kaimahi Dr. Ganesh Nana is a respected New Zealand economist with over 40 years of experience. Join Dr Ganesh Nana's session on Day 2 to explore:
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 | Being the bridge between technology strategy & business strategy - lessons from the board room when driving transformation Giovanni Rutigliano, Chief Digital Officer, IKEA Australia & New Zealand (Australia) Giovanni Rutigliano is a digital retail expert with over 20 years of experience. Currently at IKEA, he leads digital transformation efforts, focusing on customer experience and innovation. Join Giovanni's session on Day 1 to explore:
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Join a powerful dialogue between global thought leaders and local experts at the New Zealand CIO Summit & Awards.
20-21 August | Spark Arena, Auckland