There is an undeniable correlation between digital investment and profitability according to a new survey from PwC.
PwC NZ's 2015 Global Digital IQ Survey, a study of New Zealand’s digital landscape and global best practices has revealed that companies that exhibit certain key behaviours and attitudes towards digital – such as effectively using business data, investing in digital 'for competitive advantage', and those that have a multi-year digital roadmap – are 50% more likely to achieve rapid revenue growth and twice as likely to achieve rapid profit growth than those who don’t.
According to the survey, the behaviours that correlate with strong financial performance include:
1. The executives responsible for digital are involved in setting high-level business strategy.
2. Business-aligned digital strategy is agreed upon and shared at the C-level.
3. Businesses actively engage with external sources to gather new ideas for applying emerging technologies.
4. Digital enterprise investments are made primarily for competitive advantage.
5. Organisations effectively utilise all the data they capture to drive business value.
6. Businesses have a single, multi-year digital enterprise roadmap that includes business capabilities and processes as well as digital and IT components.
The study, now in its seventh year, tracks best practices and evolving attitudes and priorities regarding digital technologies around the world.
Greg Doone, PwC digital strategy and data leader says that while most companies say they are investing more in digital technology, "the top-performing organisations understand how to best apply the technology so that it becomes a mind-set."
“Increasingly...leaders are recognising that digital is far more than technology. It is driving fundamental change in consumer and staff behaviour and this, in turn, has cultural and work practice implications beyond the technology itself.”
“New Zealand organisations have had a late start compared to global leaders but they are catching up quickly,” he says.
“Where it was noticeably absent three years ago, digital strategy has now become an integral part of everyday boardroom discussions. This leadership engagement in digital is another strong factor contributing to growth. It is now very common for a board or an executive team member to mention a recent trip to Silicon Valley or another technology hotspot to expand their digital outlook.
“Overall, there is a renewed focus by New Zealand businesses on digital strategy and those investments are starting to pay dividends. There is a desire and a drive to embrace digital thinking, as well as a recognition that New Zealand companies need to invest more in this thinking to keep up with organisations around the world – and customer expectations here at home”.
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Read the full survey online here.