Professional Documents
Culture Documents
Overview
Key Findings
■ Composability delivers superior business performance, yet few ANZ enterprises are
highly composable.
■ ANZ has slipped down in IMD World Digital Competitiveness Rankings, making
composability more urgent.
■ The high rate of cybersecurity “premiums” in ANZ enterprises takes funds from
composability.
Recommendations
To boost business composability, ANZ CIOs should:
■ To optimize spend, review your cybersecurity premiums. Cybersecurity risks are real
and growing, but cybersecurity is not an end in itself. Treating cybersecurity
investments as a business problem, buying well and treating investment as a
balance of protection against the ability to invest in other areas will help optimize
cybersecurity spend.
Survey Objective
The 2022 Gartner CIO and Technology Executive Survey was conducted to inform CIOs
and other technology executives on how composability can improve business
performance during times of volatility.
Data Insights
Composability Delivers Superior Business Performance But Few ANZ
Enterprises Are Highly Composable
The challenge facing business leaders is not figuring out when we return to normal, or
what the new normal is. Rather, it’s about the business adapting to change as a normal
mode of operations. Some enterprises are already restructuring for uncertainty and getting
good business results as a consequence. They are practicing “business composability”
(see Note 1: What Is Business Composability?).
This approach applies modularity to any business asset — people, processes and
technologies and even physical assets — so that leaders can quickly, easily and safely
recompose them and create new value in response to disruption.
Composability may be known in the region, but ANZ is lagging slightly. In a comparison of
ANZ respondents against their global peers, as Figure 3 shows, ANZ has fewer high-
composability enterprises and more low-composability enterprises than is the global
norm.
To highlight this disparity between ANZ’s current performance, and where the region could
be, Figure 4 shows the percentage of top-composability enterprises for a series of selected
regions. ANZ is down the global rankings alongside the U.K. and Ireland and Canada.
ANZ’s Slip Down the IMD Digital Rankings Makes Composability More
Urgent
What might be holding the ANZ region back in the race to become more composable? A
host of factors influence a region’s performance, but one that stands out is ANZ’s
relatively low ranking in digitalization.
A low digital ranking at first sight seems odd. Digital success stories abound across ANZ.
From a Government agency using AI on high-definition aerial imaging to identify banana
plantations (with 87% accuracy) for agricultural planning purposes in Australia, to New
Zealand’s prowess in fintech, health IT, digital and creative technologies. However, look
more broadly at digital and things are less rosy. A recent study by IMD (a Swiss business
school) shows Australia and New Zealand both slipping down the global digital
competitiveness rankings. In Australia’s case, that slip was from 15 in 2020 to 20 in 2021.
For New Zealand it was less precipitous but from a lower base: 22 in 2020 to 23 in 2021.
■ Structural problems with digital teams. To resolve structural issues with digital
transformation, CIOs should follow the best practices advice that combines product
management with distributed technology producers (see Infographic: Fusion Teams:
Democratized and Distributed Technology Delivery for Digital).
With tight budgets, the problem for ANZ is that we seem to be paying what appears to be
growing cybersecurity “premiums” (see Figure 8). Seventy-three percent of ANZ
respondents are increasing their expenditure on cybersecurity. In the short run, this may be
at the cost of AI and machine learning (ML) for example, where 57% percent of high-
composably respondents are increasing their investment, but only 18% of ANZ
respondents are.
In the longer term, pressing cybersecurity considerations starve funds from a number of
technologies that will be increasingly important in the future (see Figure 9). For example,
ANZ enterprises’ emerging technology investment intentions show only 35% of ANZ
respondents have already invested or intend to invest in the next 12 months in AI/ML.
This is in contrast to 72% of high-composability respondents. AI and distributed cloud
seem to be important foundational technologies for composable enterprises.
Reasons for this increase in cybersecurity investment in ANZ abound, from an increased
threat landscape to catching up on historic underinvestment. Whatever the cause, it’s
important to get the best value from this new spend on cybersecurity.
Second, ensure cybersecurity investment is treated as a business decision like any other.
Consider the following three actions:
■ Adopt adaptive strategy more widely by (initially at least) keeping the IT strategy
aligned with the changing environment.
■ Start small, measuring the success of this approach to prove the business case.
■ Roll out teams that mix IT and business teams together (see Leverage Three Forms
of Teams for the Post-COVID-19 Workplace and Build Business Acumen for Your
Team Members and Yourself).
■ Ease and encourage collaboration by strengthening the digital tools and platforms
that offer the potential to hold creative groups together.
■ Keep local business practices in mind and start small as a proof of concept to prove
new digital “connective tissue” works.
Conclusion
ANZ CIOs and technology executives must prepare to operate in a more disruptive
business environment by making their enterprises more composable. ANZ CIOs are in a
strong position to lead the charge and advance composable thinking, business
architecture and technologies at the same time (see Note 2: Nine Practices That
Accelerate Composability).
Plans should include steps in the three domains that reinforce each other. For example,
using platforms that facilitate the sharing of ideas complements adaptive strategy in the
thinking domain and the use of multidisciplinary teams in architecture. Moreover, CIOs
should plan these steps based on the enterprise’s current level of composability — low,
moderate or high. Enterprises must build composability gradually — starting small,
measuring outcomes, proving success and building out from that solid base.
Presentation Deck
View the full survey results from Australia and New Zealand respondents
Evidence
Research Methodology
The 2022 Gartner CIO and Technology Executive Survey was conducted online from 3
May 2021 through 19 July 2021 among Gartner Executive Programs members and other
technology executives. The total sample is 2,387, with representation from all geographies
and industry sectors (public and private), including 114 from enterprises in Australia and
New Zealand.
The survey was developed collaboratively by a team of Gartner analysts, and was
reviewed, tested and administered by Gartner’s Research Data and Analytics team.
Disclaimer: Results do not represent global findings or the market as a whole but reflect
sentiment of the respondents and companies surveyed.
■ Composable technologies:
2020 CIO Agenda: An Australia and New Zealand Perspective - 19 December 2019
2019 CIO Agenda: An Australia and New Zealand Perspective - 29 March 2019
2018 CIO Agenda: An Australia and New Zealand Perspective - 9 March 2018
2017 CIO Agenda: An Australia and New Zealand Perspective - 9 February 2017
2016 CIO Agenda: An Australia and New Zealand Perspective - 19 February 2016
© 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of
Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form
without Gartner's prior written permission. It consists of the opinions of Gartner's research
organization, which should not be construed as statements of fact. While the information contained in
this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties
as to the accuracy, completeness or adequacy of such information. Although Gartner research may
address legal and financial issues, Gartner does not provide legal or investment advice and its research
should not be construed or used as such. Your access and use of this publication are governed by
Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its
research is produced independently by its research organization without input or influence from any
third party. For further information, see "Guiding Principles on Independence and Objectivity."