GUIDE

2025 A Year of Transformation, Challenge, and Pragmatic Hope

Reflections from Emergent Consulting's Managing Director

In twenty-five years working with organisations navigating technology change, I've never seen digital transformation embraced and prioritised quite like this. Something fundamental has shifted. The conversations I'm having with executives today carry a different weight - there's a recognition that getting technology right isn't optional anymore. It's existential. People seem to finally realise how crucial great technology is to their organisation's future.

As Emergent marks its tenth anniversary this year, I find myself reflecting on a 2025 that tested us, taught us, and ultimately reinforced why we do what we do. It's been a year of paradoxes - unprecedented challenges alongside genuine breakthroughs, sobering reality checks balanced by real cause for optimism.

The Regulatory Reckoning

When Support at Home and the New Aged Care Act came into force on 1 November, many organisations were still scrambling. The compressed implementation timeframes caught providers off guard - not because they weren't aware of the changes coming, but because the operational complexity of readiness was underestimated. Preparing systems, processes, and people for fundamental regulatory change takes longer than most organisations anticipate.

This year reinforced something I've observed repeatedly: regulatory change is rarely just a compliance exercise. It forces organisations to confront legacy systems, fragmented data, and process inefficiencies they've been working around for years. The providers who navigated these reforms most effectively were those who had already invested in building strong technology foundations - not as a response to regulation, but as a strategic priority long before the deadlines loomed.

The lesson here extends well beyond aged care. Every sector faces evolving regulatory landscapes. The organisations that treat technology modernisation as ongoing strategic investment - rather than reactive compliance scrambling - are consistently better positioned when change arrives.

The AI Reality Check

If 2024 was the year of AI hype, 2025 was the year of reckoning. The AI failures became more evident throughout the year. We saw the consequences of over-reliance on AI without due diligence - implementations that promised transformation but delivered confusion, tools adopted without proper change management, and a growing gap between vendor promises and operational reality. Too many organisations rushed to implement AI capabilities without understanding what problems they were actually solving.

What's encouraging is watching how the market is maturing. We're now seeing vendors take a more holistic approach, embedding AI thoughtfully across their platforms rather than bolting on features for marketing purposes. The distinction matters enormously. AI that's deeply integrated into workflows and designed around genuine user needs delivers value. AI that's added as an afterthought creates noise and frustration.

The organisations getting real value from AI are those treating it as a capability to be carefully integrated, not a silver bullet that magically solves problems. They're investing in understanding their data, training their people, and establishing governance frameworks before deploying AI solutions.

I often liken AI to electricity. In its early days, electricity was novel and misunderstood - people weren't sure how to use it safely or effectively. There was fear, excitement, and plenty of failed experiments. Today, we don't think about electricity; we simply expect it to power everything. AI will follow the same trajectory. It will become a layer across everything we do - embedded so seamlessly that we'll stop thinking of it as 'AI' at all. The question isn't whether your organisation will use AI, but whether you'll be ready when it becomes as ubiquitous as flicking on a light switch.

Workforce Pressures and the Efficiency Imperative

The workforce challenges facing Australian organisations intensified in 2025. Staff retrenchments across industries, combined with a growing need for specialised skills, created a perfect storm. Organisations are being asked to do more with less, and efficiency has moved from aspiration to absolute necessity. The pressure isn't letting up.

Australia's productivity continues to fall behind internationally, and the gap is widening. This isn't just an economic statistic - it's felt in every organisation struggling to maintain service levels with constrained resources. For many of the organisations we work with, the path forward isn't about working harder - it's about working smarter. That means systems that talk to each other, processes that reduce administrative burden, and technology that enables rather than impedes. It means transforming data from a byproduct of operations into a strategic asset.

The organisations making genuine progress on efficiency are those taking a holistic view - examining how their systems, processes, and people work together rather than optimising in isolation. Quick fixes rarely deliver lasting improvement.

What Gave Us Hope

Amidst the challenges, 2025 delivered genuine wins that reinforce our belief in what's possible. One client engagement stands out as symbolic of many: a nine-month transformation program that touched every corner of their operations - finance, HR, clinical systems, and care management all transformed in parallel. The result? Zero operational disruption at go-live, sustainable internal capability built along the way, and a platform positioned for future growth.

This wasn't magic. It was methodical planning, deep partnership, and an unwavering focus on outcomes rather than outputs. It's the approach we've refined over a decade of learning what works - and what doesn't - in complex transformation programs.

Our team grew this year, welcoming talented consultants who share our commitment to doing transformation properly. Our partnerships with vendors like AlayaCare, Strategy Software, Humanforce, and TechnologyOne deepened meaningfully. We achieved Premier Partner status with Strategy Software and established quarterly partnership meetings with Humanforce. We launched new service offerings designed to help organisations sustain momentum beyond project completion - because transformation isn't a destination, it's a continuous journey that requires ongoing attention.

Looking to 2026

If there's one thing I'm certain of, it's that the pace won't slow. Regulatory requirements will continue to evolve. AI will mature and embed further into everyday operations. Workforce pressures will demand even greater efficiency. The organisations that wait for stability before acting will fall further behind.

But here's what gives me pragmatic hope: I'm seeing a growing recognition that technology investment isn't just about solving today's problems - it's about building organisational resilience for whatever comes next. The organisations that will thrive are those approaching transformation systematically, with partners who understand both the technology and the human element of change. They're the ones asking not just 'what system should we implement?' but 'how do we build capability to keep evolving?'

Ten years ago, I founded Emergent with a simple belief: that organisations deserve transformation partners who are genuinely invested in their success, not just their project fees. That belief hasn't changed. What's changed is the urgency - and the opportunity.

If 2025 taught you that your technology foundations need attention, I'd welcome the conversation. Because transformation done right isn't just possible - it's what we've spent a decade proving.

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Anthony Butler
Founder & Managing Director, Emergent Consulting