Survey finds that most enterprises are still playing catch-up to the consumerization of IT
NEW YORK, January 31, 2012 – According to the fourth annual Digital IQ survey, released today by PwC US, top-performing U.S. organizations show greater mastery in how they leverage digital technologies by offering mobile tools for customers, measuring data through social media, mobilizing applications to the public cloud and the innovative use of business intelligence. Top performing companies are defined as those rated in the highest quartile for annual revenue, growth, profitability and innovation as well as revenue growth of more than five percent in the last 12 months. PwC defines a company’s Digital IQ as a measure of how well companies understand the value of technology and weave it into the fabric of their organization.
“Raising a firm’s Digital IQ means improving the way it leverages digital technologies and channels to meet customer needs,” said John Sviokla, principal at PwC. “The core of the ecosystem for innovation has moved from inside the firm to out in the marketplace. Customer and employee expectations are being shaped by this new, dynamic and exciting environment—if you miss this trend you will be increasingly irrelevant to the market.”
The CIO plays a critical role in the planning process for increasing a company’s Digital IQ. According to the report, CIO’s must be excellent at managing the internal factory, but also excel at mobilizing new plans into action. A high Digital IQ requires the CIO to find better ways to sift through and drive insight from the increasing torrent of data streaming from every manner of device and interaction, and to create a platform that can deliver these capabilities across a varied set of changing mobile devices.
According to the survey, 63 percent of respondents revealed their greatest challenge is the inability to gather, understand and act on customer data. Fifty-eight percent cite an inability to quickly understand and adopt new information technologies needed to be competitive.
Survey results point to four technology-related truths of the digital enterprise that organizations can build upon to increase their Digital IQ:
The Digital IQ findings call for business leaders — and, in particular, today's CIOs — to lead their organizations to change and innovate from the inside out. The report findings suggest that excellence in IT has not been commoditized and is still differentiating as a competitive advantage. Indeed, IT-enabled, multi-channel connections with customers can make a marked difference to business results. But to succeed, today's CIOs — and the C-suite more broadly — must excel at not just managing internally, but also mobilizing new plans into action.
As with PwC’s previous Digital IQ studies, the results confirmed that top-performing companies not only put IT at the heart of their strategies—they ensure that senior management actively helps to drive the mobilization and execution of those plans. “Consumerization of IT is on the rise, and in the survey we continue to see a need to serve the mobile customer, move to cloud services and use data more effectively,” said Chris Curran, principal at PwC. “Organizations that have an integrated strategy—which includes technology—seem to perform better.”
To learn more about the fourth annual Digital IQ Survey, please visit: www.pwc.com/us/digitalIQ.
About the survey
The 4th annual Digital IQ survey was conducted by PwC and included responses from roughly 500 U.S. companies with annual revenues of more than $500 million (with an emphasis on those with $1 billion or more in revenue). Half of the respondents were business executives; the other half, IT executives. The survey covered a number of industries, including financial services, insurance, healthcare, retail and technology, among others.
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