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What is the digital IQ of companies?

28/06/2017

Digitization

Fifty-two percent of executives believe that the degree of digitalization of their companies is high or very high. This is one of the conclusions derived from the 2017 Global Digital IQ® Survey: 10th anniversary edition recently published by the consulting firm PwC. Although this figure may seem high, the truth is that it has dropped 15 points since the last report, which contained data from 2015.

Have companies taken a step backwards in digital transformation?

The decrease in the perception that the CEOs have about the digitalization of their companies does not correspond to less technology implementation in businesses. According to PwC, this decrease is due to three factors:

  • The first is that companies have increased their technological knowledge and are more aware of the road ahead.
  • Secondly, managers now understand that digital transformation is not just an IT issue, but should involve all departments of the company.
  • And finally, digital evolution is fast and there is a growing number of new technologies such as artificial intelligence that companies don’t feel prepared to deal with.

This scenario has caused confidence in companies’ technological capabilities to be minimal. Even so, there is an improvement in the effort dedicated to digital transformation. In fact, 66% say that they have a digitalization strategy that includes business and IT processes, compared to 54% in 2015.

Furthermore, 80% believe that identifying digitalization opportunities is a critical part of business innovation. However, only 43% have a team dedicated to digital transformation. This data demonstrates that companies are advancing, but not fast enough to adapt to the most recent technologies that are emerging.

What do companies pursue with digital transformation?

In the survey, the majority of managers confirmed that increased revenue was the main value they expected to get from their technology investment. In total, the percentage reached 57% compared to 45% in 2015. The increase in profits (12%) and cost savings (7%) were other reasons.

It’s astonishing that the improvement of customer experience and product innovation are last at 10% and 2% respectively. Both have dropped compared to 2015 when they were a target for 25% and 5% of respondents.

 Consolidate before innovating

In the last 10 years, the percentage invested by companies in emerging technologies has remained almost the same. In 2007, it was 16.8% of the total IT budget. Now it is 17.9%. The majority of this percentage is dedicated to the Internet of Things (73%), artificial intelligence (54%), and robotics (15%).

However, right now companies have another digital priority. Their main objective is to consolidate or implement technologies aimed at automating work processes and optimizing operations, which are two goals for those who use relevant solutions like cloud computing, electronic storage, or EDI.

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