A recent survey of 2,000 business and technology executives by PwC finds that that there is a direct link between digital investment and corporate performance.
Specifically, the report finds that digital leaders are twice as likely to achieve more rapid revenue and profit growth as the “laggards” in the study. These digital leaders are “more deliberate” in their digital strategy, the report finds, and also show a greater CEO commitment, a strategic clarity and a broad view when it comes to applying technology and identifying new sources of innovation.
It’s not that other companies don’t have a commitment to digital: 86% of CEOs are pushing digital technologies compared with 57% in 2013. In addition, 31% report their companies are investing more than 15% of revenue into technology investments that include all areas of the business, not just IT.
But the digital leaders are better at not only linking digital to real gains, but also are more adept at consistently measuring the value of their digital investments, the report says.
Based on its research, PwC identifies the 10 characteristics that will spur digital growth:
- The CEO champion. “The CEO is the natural leader as the focus on technology has shifted from operational efficiency to growth, and the stakeholders and conversations have changed,” the report says.
- Digital leaders set strategy. As CIOs and CDOs become more involved in setting the strategy, some organizations may have to change the way the organization is structured. For example, a global healthcare company uses a digital council that brings together CIOs and CMOs, who work together on both digital strategyand execution.
- The C-suite is on board. While the CIO and CMO may collaborate, research shows it’s often a weak relationship – only 54% rate it as strong compared to the CIO/CEO relationship that is rated at 70%. But getting all the C-suite players on the same page “means there’s greater (read more here)