Photo: iStock  (iStock)
Photo: iStock (iStock)

What is your company’s digital IQ?

Business leaders are missing the point when they believe that digital is just an investment in new technologies

Companies with high digital IQ scores are twice as likely to achieve rapid revenue and profit growth compared with the laggards, according to a new report by PricewaterhouseCoopers Pvt. Ltd (PwC). However, business leaders are missing the point when they believe that digital is just an investment in new technologies. Rather, digital refers to a new way of doing business, or an operating model that allows enterprises to engage more effectively with their stakeholders, fine-tune their operational effectiveness and strengthen risk management strategies, the report finds.

Where India stands

When it comes to digital IQ, companies in India are relatively confident about how they are driving digital throughout the enterprise. About 61% of the Indian companies surveyed reported a very strong digital IQ. In contrast, the researchers found the numbers to be lower in North America (57%), Latin America (54%), and significantly lower in Asia (49%) and Africa (46%). However, Australia (67%) and the UK (68%) indicated a stronger digital IQ. The positive sign, according to the PwC report, is that around half of the companies surveyed—53% in India and 44% globally—responded saying that their digital enterprise investments are between 11–20% of their revenue.

Who drives digital? The report underscored that though the CEO champions the digital agenda within an organization, it finds that CIOs (chief information officers) are being looked up to for leading the digital efforts. It concluded that an effective digital strategy cannot be executed in silos. Hence, it is vital for the CIO to collaborate with members of the C-suite, sharing the same level of understanding of corporate strategy, opportunities and risks, while at the same time chalking out a digital technology road map.

Where to look for innovation

In India, 68% of executives say they rely on industry analysts as sources for applying emerging technologies in new ways to solve business problems (globally, 63%) while 54% point to competitive intelligence as a source for gathering ideas for innovation (globally, 44%), and 51% rely on customer advisory groups and surveys (globally, 52%).

Barriers

A majority of companies in India (81%) point to outdated technologies as an obstacle to achieving the desired results from digital initiatives, as opposed to 67% globally. In India, 79% view lack of properly skilled teams as a barrier (globally, 70%). And 79% say they believe that integration of new and existing technologies is an obstacle (globally, 73%).

Skills required

About 84% of companies in India view technology architecture and design skills as most important to their business; and 81% point to data analytics skills as most important. In addition, 64% agree that they systematically evaluate and update their talent model to address the changing digital enterprise resource needs. The report says that focusing on the architectural aspects of IT infrastructure is critical for laying a solid foundation for digital transformation within an enterprise. The report adds that with cloud computing being fundamental to this digital transformation, key aspects include understanding hybrid-cloud and multi-cloud models, managing data portability, interoperability issues in the cloud, rapid development, and automated deployment of applications in cloud environments.

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