The majority (74%) of surveyedlocal executives identify technological disruption as their primary businessrisk and plan to transform their organisations’ business models – driven by thedigital economy.
This is one of the key findings of the PwC Africa Annual Review 2024, which provides the company’s economic impact assessment of the year, as well as insights into the future direction of its network of firms in Sub-Saharan Africa, including SA.
The report is based on a survey of C-suite executives from PwC’s network of 400 partner organisations across the region.
It states that over the past year, enterprises in SA faced opportunities and challenges similar to those experienced by companies globally.
PwC highlights the importance of innovation and reinvention in navigating global megatrends − climate change, technological disruption, a fracturing world, demographic shifts and social instability − which have placed pressure on companies’ ability to stay profitable and contribute more to the economy.
In light of this, the report suggests big enterprises must prioritise building trust and reinventing their business models to thrive in SA’s future economy.
The business landscape stands at a pivotal point of technological disruption, with over three-quarters of surveyed executives and 82% of CEOs affirming the need for fundamental changes to business models within the coming decade, it says.
The survey found that 92% of CIOs anticipate widespread artificial intelligence (AI) implementation by 2025.
Christiaan Nel, PwC Africa AI leader, comments: “Technological disruption is driving business transformation. The rapid advancement of technologies, such as AI, robotics and biotechnology, present significant opportunities for innovation. These technologies can enhance productivity, improve efficiency and address critical issues like climate change.”
However, Nel underlines the importance of carefully managing the unintended consequences of technology, including cyber security threats, misinformation and privacy concerns.
“A robust foundation in technology and data architecture is essential for successful transformation. With 79% of CIOs planning to leverage generative AI to reshape business models, organisations must establish sustainable frameworks for innovation.
“This involves a clear data strategy, scalable data architecture and aligning technology investments with business objectives and implementing ethical business policies and practices. A well-constructed roadmap helps organisations evolve their digital capabilities, while maintaining operational stability,” notes the report.
In terms of safeguarding systems from cyber attacks, the report suggests companies embed security from the outset, by positioning data as a strategic asset.
“With 78% of CIOs viewing cyber risks as critical, embedding security in every architectural and operational decision is vital. Comprehensive security policies, standards and processes protect key assets and foster a secure environment for innovation.
“Integrating security considerations within the data governance framework ensures alignment between risk management and technological advancement,” notes the report.
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