Digital acceleration is here to stay, and it’s time to embrace it

When it comes to digital transformation, one of the misconceptions is that the idea behind the move is purely a technological leap, when in practice, the reality is entirely different. According to a survey we conducted among 4,300 senior executives in the information systems business, in no less than 25 countries around the world, companies that have invested in technology have significantly increased their profits - compared to those who have only just begun to do so due to the Covid-19 outbreak. Of all those who answered the survey, more than 70% reported that they increased investments in cloud security, 68% answered that they had increased investments in a hybrid cloud solution. In addition, the adoption rate of IoT technologies has risen by 70%, and the use of AI and artificial intelligence applications has increased by about 70%. All the companies that reported that they accelerated the adoption of the new technologies reported that their profitability increased by 17% compared to the previous year.

One of the most notable figures in the global survey is that the leading companies have diverted many of their IT budgets from maintenance to business innovation. There is no doubt that the cloud revolution is one of the significant technological revolutions we have experienced. But, beyond a technological leap forward, it is an innovative organizational  concept that streamlines business activity and changes the rules of the game.

As mentioned, the survey demonstrates the connection between investing in innovative technologies and growth in profitability among international companies. Among the most sought out components of digital transformation that are being implemented these days in forward thinking organizations around the world you can find the integration of automation, machine learning, and artificial intelligence into decision-making processes and business processes.

Digital twins are another emerging concept who, through advanced algorithms, can alert and  predict diverse activities in all industries. Also Information security, protection of privacy, and protection of the environment are among the trending components of the digital transformation process.

And what about Israel? It seems the market is boiling, which is well reflected in the data of the research company STKI headed by Dr. Jimmy Schwarzkopf: The field of information systems management (IT) in Israel is growing. By 2021 we will end with an increase of 7.5%. During 2020, the Corona year, the market remained stable and decreased slightly by 0.2%, and the aforesaid year 2021 will end with an increase of about 7.5% and will stand at about $7.6 billion.

As Israel is a powerhouse of innovation, the change here is evident. With every passing day, as more Unicorns are added to the respectable list of billion-dollar companies, it’s pretty clear that all of these companies are in need of a progressive organizational infrastructure strategy - especially given the significant workforce challenges that are a part of the local market.

Information systems are experiencing a revolution, no less, in terms of demand, prestige, and value creation. We are seeing a major change as IT departments are taking center stage as innovation drivers. The digital acceleration we experienced during the Covid-19 period will not stop. Now is the time to lead rapid change.

Shimon Elkabetz is the Country Managing Director at Accenture Israel