Networks Asia Staff, Networks Asia (excerpt)

After a decade of declining productivity growth worldwide, The Conference Board, a US-based business and research association, projects an uptick this year in its latest release of annual productivity growth rates for 123 countries. The expected improvement in global productivity to 1.9% this year from 1.3% in both 2016 and 2015 will be driven by faster demand from emerging markets.

Still, economists and business leaders alike have been baffled by such a long-drawn and widespread productivity slump, especially at a time of rapid technological change and digital innovation. Technological shifts have historically boosted productivity.

The slowdown can be partly attributed to the dampening effects of the 2008/2009 global financial crisis. But it also raises questions on how quickly new technologies have translated into productivity and revenue growth.

 

 

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People power

“Digital transformation isn’t a trendy moniker to signify an increase in technology investment,” says Brian Solis, principal analyst at Altimeter. “It’s a renewed focus on the customer and the human side of business.”

Altimeter’s recent research found that “digital transformation is a re-alignment of, or new investment in, technology and business models with a pointed purpose: to more effectively engage digital consumers at every touchpoint in the customer experience life cycle,” Solis adds. “Digital transformation is significant because it is finally driving real change within businesses; they’re developing new models, team structures, and customer-centered philosophies along the way.”

Every customer-centric business, digitalized or not, puts people at the center of change. Keeping in step with changing customer needs and behavior helps CIOs to prioritize technology, resources and investments. And that may well hold the secret to realizing quick returns on digital transformation investments and ensuring they translate to healthy productivity and revenue growth.