Since 2007, our Digital IQ research has examined how organizations can maximize and profit from technology investments. Now, after a decade of digital innovation, we look at how far we've come and what's needed to unlock value from the next generation of digital technologies.
Despite considerable investment in technology and executive commitment to digital transformation, companies are not prepared for what comes next. Confidence in their digital abilities is at an all-time low: Just 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.
Creating better human experiences is critical to raising Digital IQ, yet customers, employees, and culture continue to get less attention than strategy and technology. The companies that say creating better customer experiences is a digital priority have dropped to just 10% this year, down from 25% the prior year. This imbalance has far-reaching effects. It creates problems in the marketplace, slows the assimilation of emerging technologies, and hinders the development of organizations that can adapt continuously and anticipate exponential change.
The internet of things, artificial intelligence, robotics, and other technologies are poised to bring dramatic advances to business. But despite the promise of these tools—and the risks of falling behind—spending on emerging tech is relatively stagnant. In 2007, the average investment was 17% of technology budgets. In 2017, the rate is only marginally higher: 18%. Company leaders are still focused on putting to work more foundational technologies like cloud and mobile, but they can't afford to ignore the next wave of innovation.
See where and why company leaders are placing their bets in our special 2017 Global Digital IQ report: Emerging technology insights.