How to overcome structural barriers to digital transformation - Akkodis study 'What CTOs think' reveals insights

Rhea-AI Summary

Akkodis, a global digital engineering company, has released a study titled 'What CTOs Think: Navigating the Path to the AI Enterprise'. The report, based on a survey of 2,000 C-suite leaders across 9 countries and 18 sectors, reveals insights into the challenges and opportunities in digital transformation. Key findings include:

1. CTOs see 'catalyzing business growth' as a top benefit of digitalization.
2. 60% of CTOs believe their organization's leadership lacks sufficient AI skills.
3. Only about half of organizations offer AI usage guidance and ethical data use frameworks.
4. CTOs anticipate widening digital skill gaps and increasing wages for technical staff.
5. There's a need to balance building, buying, and renting talent, with a focus on upskilling existing employees.

The study emphasizes the importance of cross-departmental collaboration and addressing skill gaps to successfully transform into an AI-powered enterprise.

Positive

• CTOs recognize digitalization as important for business growth
• 80% of CTOs are 'very confident' in their AI plans
• CTOs are focusing on upskilling and reskilling existing employees
• Generative AI is expected to positively impact workforce strategies

Negative

• 60% of CTOs believe their organization's leadership lacks sufficient AI skills
• Only about half of organizations offer AI usage guidance and ethical data use frameworks
• Critical digital skill gaps are expected to widen
• Increasing wages for technical staff are anticipated due to high demand for digital skills

The report combines insights from global CTOs on this latest era of digital transformation and recommendations for navigating the shift to an AI-powered enterprise

ZURICH, Sept. 10, 2024 /PRNewswire/ -- In recent years, digital transformation has become an indispensable priority for the C-suite, with many CTOs recognizing that digitalization is an ever-evolving concept; unlike earlier phases that focused on process automation, a majority of CTOs now see "catalyzing business growth" as a top benefit. However, according to a major study published today by global digital engineering company and Smart Industry leader, Akkodis, CTOs report numerous challenges and acknowledge that there is still much progress to be made. There are still many uncertainties surrounding the introduction of AI technologies and there is also a discrepancy between the CTOs' concepts and the corporate reality.

 

 

"What CTOs Think: Navigating the Path to the AI Enterprise" is a report that explores how CTOs are approaching this current era of digitalization and offers recommendations for a successful transformation to an AI-powered enterprise. The survey^[1], conducted in collaboration with Oxford Economics, covers 2,000 C-suite leaders, including 509 CTOs, across nine countries and 18 sectors, including Aerospace, Automotive, Energy, Life Sciences, and Technology.

Uncertainty and inaction hold back digital transformation

Despite a clear imperative for CTOs to digitally transform their organizations, uncertainty paralysis poses a barrier to action. External challenges rank high, including regulation and compliance, as well as security risk concerns. Yet, with new tech rapidly evolving, the number one barrier CTOs cite across industries is selecting the right technology. AI stands out as a defining feature of this emerging new digitalization era. Although most CTOs see it as a game changer for their companies, the technology remains nascent and 60% of CTOs believe their organization's leadership lacks sufficient AI skills and knowledge. Skills gaps within the C-suite may trickle down to impact readiness across the wider workforce.

CTOs need to collaborate to deliver the AI enterprise

There is a gap between CTOs' ambition and implementation when it comes to their AI strategies, worsened by broader uncertainties. While 80% of CTOs are "very confident" in their AI plans compared to 67% from the rest of the C-suite, there's still work to be done. Only about half of CTOs say their organizations offer AI usage guidance, provide a framework for ethical data use, and offer AI training (56%, 51% and 46%, respectively). To address the disruption new technologies bring across business models, CTOs must foster cross-departmental collaboration to secure enterprise-wide buy-in.

There is an urgent need for digital workforce strategies

CTOs identify critical digital skill gaps that are expected to widen as this new wave of digital transformation accelerates. They expect this will likely to drive up wages for technical staff, with strong demand for digital skills anticipated over the next five years. CTOs are bold on upskilling and reskilling existing employees and expect generative AI to positively impact workforce strategies across the organization in the coming year. To address these gaps, there's a need to balance building, buying, and renting talent, with a focus on upskilling and reskilling existing employees.

"This research highlights the challenges and opportunities business leaders face with the new wave of digitalization and emerging technologies," said Jan Gupta, President, Akkodis. "The Smart Industry is all about leveraging digitalization to help us connect everything, use data to inform sharper decisions, and create new business models and smarter systems. The CTO plays a crucial role in bringing this to fruition. Their collaboration across the C-suite is critical to navigating talent gaps, building AI-ready foundations, and ultimately transforming the enterprise."

The full report is available here.

Notes to Editor

^1. Akkodis' "What CTOs think" is based on the Adecco Group's Business Leaders research, which investigates the changing world of work from the executive perspective.

About Akkodis 

Akkodis is a global digital engineering company and Smart Industry leader. We enable clients to advance in their digital transformation with Consulting, Solutions, Talent, and Academy services. Headquartered in Switzerland and part of the Adecco Group, Akkodis is a trusted tech partner to the world's industries. We co-create and pioneer solutions that help to solve major challenges, from accelerating the clean energy transition and green mobility, to improving user and patient centricity. Empowered by a culture of inclusion and diversity, our 50,000 tech experts across 30 countries combine best-in-class technologies and cross industry knowledge to drive purposeful innovation for a more sustainable tomorrow. We are passionate about Engineering a Smarter Future Together. akkodis.com | LinkedIn | Instagram | Facebook | Twitter

About the Adecco Group

The Adecco Group is the world's leading talent company. Our purpose is making the future work for everyone. Through our three global business units – Adecco, Akkodis and LHH – across 60 countries, we enable sustainable and lifelong employability for individuals, deliver digital and engineering solutions to power the Smart Industry transformation and empower organisations to optimise their workforces. The Adecco Group leads by example and is committed to an inclusive culture, fostering sustainable employability, and supporting resilient economies and communities. The Adecco Group AG is headquartered in Zurich, Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN). www.adeccogroup.com

Media contacts:
Anne Friedrich
SVP
Global Head of Communications
Akkodis
+4915174633470
anne.friedrich@akkodis.com

Lisa Bushka
VP
Global External Communications
Akkodis
+18604630770
lisa.bushka@adeccogroup.com

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SOURCE Akkodis

FAQ

What are the main challenges CTOs face in digital transformation according to the Akkodis study?

The main challenges include selecting the right technology, regulation and compliance issues, security risk concerns, and insufficient AI skills and knowledge within the organization's leadership.

How many CTOs and C-suite leaders were surveyed in the Akkodis study?

The study surveyed 2,000 C-suite leaders, including 509 CTOs, across nine countries and 18 sectors.

What percentage of CTOs are confident in their AI plans according to the Akkodis report?

80% of CTOs are 'very confident' in their AI plans, compared to 67% from the rest of the C-suite.

What strategies does the Akkodis study suggest for addressing digital skill gaps?

The study suggests balancing building, buying, and renting talent, with a focus on upskilling and reskilling existing employees to address digital skill gaps.