Looking to guide businesses by evaluating their innovation strategies and shedding light on the dynamic landscape of digital transformation in South Africa, BCX – in collaboration with EY-Parthenon – has unveiled its Digital Innovation Index Report 2023.

“Digital technologies are growing exponentially and, as leaders, we need to understand the innovation landscape to ensure our businesses are future-fit for growth and sustainability,” says Jan Bouwer, chief solutions officer and innovation sponsor at BCX. “Encouraging our organisations to think creatively about harnessing the power of technology is essential if we are to grow our businesses and the economy.”

Heather Orton, head of strategy and Innovation Africa at EY-Parthenon, adds: “Digital innovation, as highlighted in the report, occurs at the convergence of business, data, and technology. The emergence of transformative technologies such as machine learning, augmented reality, and cloud computing is reshaping the market creating both challenges and opportunities for businesses.”

The BCX Digital Innovation Index Report evaluated 42 organisations in South Africa across five distinct business elements, referred to as “building blocks”, providing an understanding of their digital and innovation initiatives. The report interviewed c-suite or senior employees with a deep understanding of their company’s innovation strategies, contributing valuable insights into the current state of digital innovation.

In the report, organisations in South Africa are classified into four categories based on their innovation approaches and stages of development. These categories include: “Excellent”, “Maturing”, “Emergent”, and “Nascent”. Each category represents different approaches and stages of development in pursuing innovation.

The report further identifies various factors impacting innovation across sectors including partnerships, talent availability, investment climate, and the regulatory landscape. External drivers enabling innovation include changing consumer behaviours, emerging technologies, and shareholder demands. Internal factors inhibiting innovation are also explored, revealing insights into risk aversion and attitudes toward failure within organisations.

“By focusing on the ‘building blocks’ of innovation excellence and examining the interplay between internal and external drivers, the report aims to empower organisations to chart a course towards innovation excellence,” says Bouwer.

The report further articulates the importance of action, urging businesses to absorb and act on the guidance offered to contribute to building a resilient and vibrant economy for South Africa.