Company Announcement

We very recently opened a new office in Melbourne, Australia, in a move that signals the importance of Australia’s current turn towards digital transformation.

2017: Australia’s year of digital transformation

2017 has been branded Australia’s “year of digital transformation” and is predicted to be a tipping point for digital transformation in the enterprise space. The Australian public and private sectors are undergoing considerable change, underpinned by the shift from isolated, low-priority initiatives to transformation as a strategic necessity that is vital to companies’ survival.

Transformation is no longer regarded purely as a cost-driven measure but is directly tied into revenue generation and customer satisfaction. This has led to global and Australian organisations overhauling business models, dramatically changing company cultures and actively engaging with new technology and innovative cloud-based services in order to deliver meaningful transformation at scale.

Key trends

We have seen common catalysts accelerating demand for digital transformation and putting it at the top of the executive agenda globally. In Australia, there are three key trends which will inevitably impact the local economy in the future:

Firstly, the Australian Government has invested over $250 million in a digital transformation agenda, modelled on the UK equivalent, to drive efficiencies, lower costs and simplify access to online government services [1]. While there have been recent setbacks in managing the Australian government's digital transformation, those challenges highlight the need for a strong leadership and commitment to seeing things through, despite significant obstacles.

This involves dealing with typical pain points such as entrenched interests, habits and structures and people being used to doing things in a particular way, as Paul Shetler, former Head of Australia’s Digital Transformation Office, recently commented. As such, the digital transformation of government should not only focus on service delivery but, critically, the underlying infrastructure and the cultural issues within public sector organisations.

Secondly, we’re seeing a huge increase in cloud adoption in the private sector, with Australian enterprises’ cloud uptake soaring and the IaaS market growing at a rate of 60% in 2016 alone and expected to reach $1 billion by 2020 [2].

Dan Williams, Director of Engineering at Contino’s new Melbourne office, said: “Amazon Web Services’ cloud innovations, released at break-neck speed, have addressed systemic roadblocks which traditionally hampered major transformation and cloud adoption. Companies must now justify not leveraging these tools, given their cost effectiveness and elastic capacity-related benefits.”

Thirdly, 40% of Australia’s workforce is predicted to be replaced by automation within the next 10 to 20 years [3]. This highlights the urgent need to consider what jobs and skills we need to develop to ensure our economy continues to grow and diversify. Transformation should therefore involve a collaborative upskilling across the organisation to ensure companies’ future success.

A global perspective on successful transformation

Through working with enterprises across the globe, at Contino we have observed a few common challenges to transformation: limited access to talent, establishing a forward-thinking working culture of innovation and implementing the latest technologies and processes to attract the best and the brightest.

To address these challenges, companies need to scale up the entrepreneurial mindset and "continuous improvement" culture exemplified by digital leaders such as Netflix and Amazon.

Success factors

In our experience, such lofty goals are critically dependent on three key factors:

First, establishing an ‘engineering-first’ culture - transformation is achieved through action, delivery and measurement. Practically, this means transforming from waterfall or agile to a DevOps operating model, and adopting the associated technology stacks, such as public cloud and containerisation (i.e. not Powerpoints, committees, big reports and meetings about meetings).

Secondly, a dual delivery and upskilling approach is imperative - organisations need to own their own transformation agenda, invest in and coach their own talent and embrace efficiencies offered by the latest cloud technologies and DevOps practices. We believe it is essential to empower our customers to improve and take ownership of their own capabilities.

Thirdly, cultural change involves tearing up the rule book and adopting change pervasively. This means hiring the most passionate, experienced and talented people who have broad transformation experience across different industries and can fundamentally reshape the culture. Change does not always come from within but must be jump-started by embedding fresh talent.

Many industries in the Australian economy are seeing a wave of digital disruption that is clearly destined to continue into the future. Companies will need to engage their customers, empower employees, optimise their operations and re-invent their services and processes to survive.

Matt Farmer, Contino Co-founder and President (EMEA) remarked: “With the current global surge in cloud uptake and digital transformation, these are very exciting times and we are looking forward to working with the biggest brands in Australia and the Asia Pacific region and to building on our existing partnerships with Amazon Web Services, Docker and HashiCorp in a new market that’s full of potential”.

References

[1] http://www.minister.communications.gov.au/malcolm_turnbull/news/investing_in_digital_transformation

[2] https://www.telsyte.com.au/announcements/2016/11/22/cloud-uptake-in-australia-soars-with-iaas-spendingset-to-reach-1-billion-by-2020

[3] http://www.ceda.com.au/research-and-policy/policy-priorities/workforce

  • Matt Farmer

    Co-Founder and CEO

    Matt is responsible for the successful growth of the business globally, whilst building and leading a talented executive leadership team. Matt brings over 15 years of management and line of business experience from his prior roles where he founded and successfully grew many consulting businesses within the technology sector across development, collaboration and DevOps.

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