SAP notes that to compete in 2016, every business must exist as a technology company, with a digital core is imperative to achieving success in the new economy. Next year companies will focus on developing their associated digital strategies – specifically around core business processes; customer experience; workforce engagement; collaboration with suppliers; and big data – defined by five technology trends.

They are:

A smarter world: Marching to the tune of technology
Whether it’s embracing robotics to improve manufacturing processes, 3D printing to produce owned products or machine-based algorithms for applications, becoming a technology company will create new business models focused on optimising outcomes.

Society is marching to the tune of technology, yet Australia’s IT skills shortage is becoming critical. If the gap is not bridged, we face local and international consequences. In 2016, the Government, businesses, technology leaders, not-for-profits and industry associations must come together to overcome this challenge to engage and inspire people to learn the science, technology, engineering and mathematics (STEM) skills crucial to our future success.

The IT sector is crying out for skilled professionals, and it was encouraging to see within the Federal Government’s National Innovation and Science Agenda a focus on attracting and developing world class talent for the jobs of the future. By taking these steps, we close the skills gap and present a solution resolving youth unemployment in Australia, which is at some of the highest levels since the 1990s.

Hyperconnectivity: Disrupting traditional business rules
The explosion in connections at the individual and machine level will continue to gather momentum, disrupting all established rules around business channels. This exponential growth in hyper connectivity opens the door to the increased personalisation of experiences across channels, empowering Australian businesses to reach new customers, create new products and services, and discover new market opportunities.

Supercomputing: Businesses start looking into the future
In 2016, Australian businesses will increasingly work to consolidate the technology platforms used for managing data. As a result, they will benefit from a reduced total cost of IT ownership, and be able to make better-informed business decisions thanks to improved analytic and predictive capabilities. Subsequently, IT spend will be shifted toward innovation, creating value for the business and customer.

To achieve this, Australian businesses will continue to adopt large-scale in-memory computing, allowing them to rapidly make sense of their data. Deploying next-generation enterprise which integrate and share information will simplify and improve business processes, and empower collaboration internally and externally. Businesses will be able to make better-informed, real-time decisions and automate processes to disrupt traditional models and create an infinite range of opportunities. This will support the Australian ideas boom, developing the talent to inspire ideas, and the partnerships to commercialise them.

Cloud computing: Driving industry specific innovation and expansion
In 2016, cloud computing has a critical role to play in driving the innovation economy and expansion among Australian industries.

The cloud will deliver more industry-specific functionality and value. Specifically, in financial and public services, agile-innovation delivered via the cloud – as well as the well-known OPEX benefits – will trigger larger scale adoption, especially for government departments working to meet the country’s cloud-first policy by the 2017 deadline.

Cyber security: Building trust with consumers, staff and partners
Inevitably, increased connectivity leads to increased risk of corporate spying and data hacks. With high-profile hacks front of mind for consumers, businesses will address cyber security as part of their overall digital strategy. Doing this early successfully builds trust among consumers, staff and partners alike.

ABOUT JOHN RUTHVEN//

John Ruthven is SAP ANZ president and MD.