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Australian IT spending to be near A$85bn in 2017

Australian CIOs must plan digital platforms that can connect to customer and business networks – or risk losing customers

Investments in digital platforms will push Australian IT spending up 2.8% to almost A$85bn (US$65bn) in 2017, according to Gartner research.

Meanwhile, IT spending by organisations in New Zealand will hit NZ$11.5bn (US$60.5bn) next year, a 2.4% increase.

Both growth figures are just below the growth in global spending from 2016 to 2017, which is expected to increase 2.9% to US$3.4trn

Australia- and New Zealand-based CIOs, like those the world over, will need to invest in digital platforms to help them connect to customers and other businesses using the latest digital technologies, said Gartner.

These new digital platforms are made up of traditional IT systems, customer experience technology, the internet of things, intelligence and the foundation of consumer ecosystems.

From a technology point of view, investments will be needed in technologies such as cloud computing and datacenters to underpin these platforms, as well as artificial intelligence, security, social media and automation to make them more effective. The CIO will be critical in ensuring the technology investments meet the demands of the business.

Speaking to CIOs and IT leaders at Gartner Symposium/ITxpo on Australia’s Gold Coast, Gartner analyst Peter Sondergaard said every organisation should have a digital platform strategy.

“The battle for ownership of digital platforms – where networks of stakeholders bring value to each other – has begun,” said Sondergaard.

“The good news is that there are incredible opportunities for those companies that innovate, lead and ultimately succeed in the creation of digital platforms that meet the needs of the customer better than their competitors.”

Read more about enterprise IT in Australian

However, Sondergaard added that this will bad news for many hearing about this for the first time because they “are already a long way behind”.

He said CIOs must work with the business to integrate digital platform development into their technology and business strategic planning.

He said CIOs will be involved in building digital platforms that have intelligence at the center, and extend beyond traditional IT infrastructure, allowing engagement with consumers.  

“Your new digital platform will allow you to participate in the evolving world of business, government and consumer ecosystems – ecosystems are the next evolution for digital,” he said, adding that by connecting to these consumer ecosystems, businesses can increase digital sales.

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There's an error, NZ $11.5 billion, should be $6.5 billion and not $60.5 billion.
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