No Match Found
Since 2007, PwC's global Digital IQ research has examined businesses ability to unlock the greatest value from the next generation of digital technologies.
In 2017, the scope and scale of digital-driven change has grown immensely since that first report. Organisations have invested a lot of time and money to keep up.
Yet company leaders are no better equipped to handle the changes coming their way than they were ten years ago. Organisations aren’t so much falling behind as struggling to keep up with accelerating standards.
This year's Digital IQ report presents the views of over 50 business and technology leaders in key industry sectors in Ireland.
In the ten years since the first Digital IQ survey, companies have done a lot to prepare themselves to profit from digital. Yet, despite considerable investment and commitment to digital transformation, companies are not ready for what comes next.
Confidence in their digital abilities is at an all-time low. Over half of the 2,200 business and IT leaders surveyed rate their Digital IQ as strong or very strong, down from two-thirds of executives in 2014 and 2015.
But Digital IQ is not measured against a static scale but tracks readiness in a rapidly evolving environment. While companies are smarter about finding the answers, the questions keep getting harder.
How can businesses unlock value from digital investments in a rapidly advancing world?
Top performing companies tend to have a broader definition of digital. They blend customer-facing activities and going beyond technology into their organisational mindset.
They are more likely to resource digital projects with cross-functional teams that bring together business, technology and UX specialists. They also prioritise innovation and emerging technology.
“Building a culture of innovation – upping everyone's Digital IQ – is no small task, but it is necessary if a company wants to compete in today's highly disrupted and challenging marketplace.”
Creating better human experiences is essential to raising Digital IQ. Yet customers, employees, and culture continue to get less attention than strategy and technology.
The percentage of companies globally who say creating better customer experiences is a digital priority have dropped to 10%, down from 25% in 2016.
This imbalance has far-reaching effects. It creates problems in the marketplace, slows the assimilation of emerging technologies, and hinders organisations' ability to evolve and anticipate change.
What practical steps can Irish businesses take to better realise a return on their digital strategy?
With the bulk of technology spending occurring outside of IT, businesses need to understand what investments are being made and how each one ties back to their digital roadmap. It is also critical that the KPIs expected from digital investments are identified and measured.
The findings of the survey highlighted that Irish businesses' digital skill sets lag behind their global peers. Training staff to be comfortable and conversant in disciplines outside their own and teaching employees to harness technology is vital. Skills that support innovation and collaboration, such as agile and design thinking, are also essential.
Emerging technologies such as the Internet of Things, Artificial Intelligence and Robotics are likely to disrupt established business models. Leadership teams should explore and adopt emerging technology into their normal practices. If emerging technology is considered as a side project of IT, it is unlikely to have any lasting impact.
Integrating emerging technology should not come at the expense of customer or employee experience. If the innovation does not create the necessary trust and transparency that users need, there is a risk it will not be adopted and the investment will be wasted.
Unless businesses give adequate attention to security and privacy, their investment in digital is at risk. The effect of cyber breaches will hinder the potential of digital development as well as doing serious damage to its relationship with its customers, employees and its overall brand.