The Next Act of UK Business. The Next Act of UK Business. Cisco UK & Ireland

Transcription

1 The Next Act of UK Business Cisco UK & Ireland November

2 Contents 03 Foreword 04 A time of change 06 Creating chaos and wonder 08 The next act: taking action 10 Conclusion 2

3 Introduction Doing good is good for business. In today s rapidly changing environment, technology can provide many answers guiding leaders in their next act. Acknowledged as both a driver of and answer to change, technology has the potential to catalyse the UK s business environment, but only if business leaders realise and anticipate the impact of what they do next on wider society. The link between profit and purpose is apparent, and business leaders must recognise this to thrive in the future. Dear reader, In the context of unprecedented change, business leaders across the nation are expected to hold a steady hand, whatever the pressures around them, and to deliver effective action. New, intelligent technologies are playing a key role in both shaping the highly competitive business environment we see today, and in providing the necessary tools to guide leaders as they define their next step. The impact of these new technologies on ways of working in the UK means that the traditional markers of profit or growth cannot be the only metrics of success when it comes to business leaders next act. Collectively, what we as UK business leaders do next has the potential to effect livelihoods, spending power and national productivity. This journey is about people. UK plc has a responsibility to ensure that our nation is skilling and re-skilling tomorrow s workforce to support a thriving digital economy. Rapid advances in technology and automation are fundamentally changing how work is done. While the role of the workforce alongside machines will bring changes, there is one constant the value of uniquely human skills. So how are business leaders in the UK approaching this challenge? For this report, we spoke to leaders across the nation responsible for delivering the UK s next business act. The pace of change and their plans are rapid and farreaching. 80% have set themselves a deadline of 2020 to reshape their organisations and over half want to wholly transform their businesses. Technology is driving what happens next, but it cannot succeed in a vacuum. It is fundamental that organisations take a long-term view and embrace technology with a focus on people, purpose and partnerships - not least because your partners, consumers and employees expect it. Scot Gardner Chief Executive Cisco UK & Ireland 3

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5 A time of change Businesses rely on a stable environment to give them the best platform possible for growth, innovation and calculated risk taking. Unsurprisingly, at present, business leaders describe the economic, political and societal landscapes in the UK as challenging. The pace of this change does not seem to be slowing. In our research two-thirds of business leaders highlight that running an organisation today is completely different to how it was two years ago. The findings suggest that leaders see delivering an effective next step in this environment of vital importance. Significant change calls for significant action. A surprising number feel it will be necessary to make substantial changes: 58% believe they need to restructure their business and 66% need to transform their business model. Almost half (47%) are planning to invest over 1m on their next step in the next 12 months. Accordingly, 7 in 10 are looking to launch new products or services to keep pace in these turbulent times. The deadline, set by 80% of those surveyed, for delivering these initiatives to reshape their business is This challenging and turbulent environment requires business leaders to think carefully about their next act. In an era of rapid disruption where innovative ideas can come from anywhere, business leaders recognise that they do not have all the answers. They are looking for inspiration for beyond the c-suite. Business leaders most frequently look to their own employees (44%) or customers (37%) for inspiration and/or advice on their next step. It is a well-trodden idiom that people are a business s most valuable asset, and here the additional value of staff to provide guidance and direction for decision makers really shines. However, what role do business leaders believe technology will play in predicting, guiding and enacting their next step? 80% of UK business leaders have set themselves a deadline of 2020 to deliver their next act; 40% to deploy technologies that power automation, like AI, machine learning and robotics before 2020, and 25% have already done so. 5

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7 Creating chaos and wonder The transformative benefits of technologies such as machine learning and artificial intelligence are creating disruption across multiple industries, shaking up established giants, propelling niche players to market dominance and increasing the threat landscape with every new connection. These technologies are giving businesses new opportunities with improvements to productivity, stimulating innovation or helping attract the best talent. 71% of business leaders believe these new technologies are the driving force behind the changes they re making to their organisation. At the same time, 78% think technology has a key role to play in guiding what they do next. These leaders appreciate the industry-wide impact of new technologies and are exploring how they can be used to better customer experience (55%) and improve efficiencies (44%). Cloud computing and big data analytics are firmly established technologies already, deployed by 55% and 41% of businesses respectively. However, many businesses are looking to get ahead by deploying automated and innovative technologies such as intelligent networking (46%) and AI or machine learning (40%) before 2020, with 25% using these technologies today. These are no longer viewed as bolt-on technologies, siloed within specific business processes. Business leaders are deploying these innovative technologies throughout their organisations and using their output to inform the direction of the business. Four fifths think these new technologies will factor into business-critical decisions in the future. Almost three quarters (71%) of business leaders believe they must make changes to their business because of new technologies. Four-fifths view these new technologies as factoring into business-critical decisions in the future. Importantly, the central role that computing now takes across every aspect of business life means the threat of cyber-attacks has increased considerably. Every organisation is vulnerable to cyber threats in some way, but the more crucial their systems are to ongoing business operation the higher its value as a target. Consequently, it is concerning that 40% of business leaders think cyber threats will have no impact on what their business does next. Unfortunately, no organisation is immune to these threats. New technologies are setting the scene and will continue to guide business decision makers through times of change. But the impact of UK business next act goes farther, it affects every employee - the skills and job roles they have or need with broader implications on society. 7

8 The next act: taking action With 80% of business leaders setting a deadline of 2020 to deliver their next act, any changes they plan on making will almost certainly already be in motion. How business leaders move to new ways of working and new products and services, will fundamentally impact society. Their decisions will affect UK jobs, spending power, national productivity, and how businesses interact with society. Technology has disrupted the business landscape already, creating tech giants and industry leaders, changing consumer expectations for good. Those same tools can close the gap prompting further innovation and competition, for the benefit of consumers. Acknowledged as a driver and an enabler of change, technology has the potential to catalyse the UK s business environment, but only if business leaders plan their next act in the context of its impact on people, their partnerships and with their broader purpose in mind: 1. People: Business leaders surveyed view employees as a strategic asset. They are the most frequent source of advice and guidance for management. However, those same leaders aren t convinced that the workforce has the appropriate skills to meet the changing needs of the business; 22% citing lack of available employee skills as a key barrier to business transformation. While most leaders (55%) agree on the need to change their current employees job roles to keep up with change, 48% also see an imminent need to displace employees with technology. It s somewhat alarming that only two thirds plan on retraining those employees who would lose their jobs to technology. 2. Partnerships: Whether it s solving the world s biggest problems, becoming more productive or helping businesses be more competitive in the face of digital disruption, one thing is clear: nobody can do it alone. Positively, 64% of business leaders identified collaboration as a key success factor for their next step. This can be with a wide group; after their own employees, business leaders most frequently turn to their customers for inspiration and advice (37%). 3. Purpose: 69% agree that it is important their next act bring wider benefits to society. However, when the time comes to implement their next act, only 15% are driven by social good or impact beyond their businesses as a priority. There is a disconnect between understanding that organisations should operate with a bigger purpose in mind, and actually implementing it. This equally applies within the business itself; despite nearly all business leaders turning to technology to drive their next act, 84% do not consider ethical implications to be a substantial barrier to business transformation. Just as alarming is the fact that only 20% of business leaders view responsibility as an important or necessary leadership trait in today s business environment. We have entered into an era where balance needs to be struck between doing well and doing good; after all, doing good is proven to be good for business. Having a strong vision for the business, and its impact on society, is more important to employees and customers than ever. Profit and purpose are increasingly linked. 56% of consumers agree that they are more likely to buy from organisations that care about their impact on society. Even more telling, 43% of employees think working for an organisation that cares about its broader impact on society and the environment is more important than an increase in salary. From the efficacy of its processes to the ethical behaviours of its supply chain, a leader s focus on their people and their impact on the world are becoming a defining part of their next act. 8

9 Conclusion The world is changing, without question. Technology provides a bridge to the possible. Whether that is the possibility of saving lives, creating jobs or reimagining whole industries. However, if technology is to deliver in the way that we know it can, we have to embrace it for good through people, partnerships and purpose. This makes business leaders next act crucially important for their own success and the wider health of society. 70% of consumers and 60% of employees say a focus on broader impact is more important than ever Customers are well aware of the changes going on around them. 70% agree that it is more important than ever that organisations consider their broader impact on society, the environment and people. Crucially, for leaders, these customers are willing to back up this belief with action. 56% agree they would be more likely to buy from businesses that care about the wider impact of their actions. Purpose also attracts, empowers and inspires employees, with more and more prioritising this even over salary. With these financial and personnel imperatives, the link between profit and purpose is increasingly apparent. 9

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