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Survey: Digital investments continue to drive growth

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Survey: Digital investments continue to drive growth

However, spending on digital disruption remains a low priority.

Digital investments are on the rise and spread more widely throughout organizations than ever before, according to a recent survey from professional services giant PwC. The report, PwC’s seventh annual, explores the ability of organizations to use technology to drive business value.

The study identified 10 critical behaviors that translate directly to strong revenue growth and profit margin. Companies with the highest scores across these 10 behaviors were 50% more likely to achieve rapid revenue growth, and twice as likely to achieve rapid profit growth, than their counterparts.

“Everyone talks about digital, but few understand the specific leadership behaviors that drive performance,” said Chris Curran, PwC advisory principal and chief technologist. “We’re seeing signs that this is changing, with leading digital practitioners looking to how today’s investments can improve tomorrow’s business results. This is a critical mindset, especially as digital technologies become more pervasive.”

Executives are seeking more strategic value from digital investments, with 45% stating that their number-one expectation from these investments is revenue growth, followed by 25% seeking better customer experiences and 12% aiming for improved profitability. Further solidifying the correlation companies are seeing between digital and business success, 31% of global respondents stated they are investing more than 15% of revenue into digital investments.

Overall, companies are prioritizing their investments in order to drive revenue and profit growth, but only within the confines of their existing business models. Only 1% of executives said their number-one expectation for digital was to disrupt their own or other industries. Instead, executives are seeking immediate returns.

In a continuation of a multi-year trend, more CEOs are leading the digital charge, setting the tone for their entire organizations that digital is essential. The CIO’s role also continues to change, from predominantly leading all internal and external digital efforts today (at 40%) to an expected drop-off in three years’ time (to 35%). A majority (65%) of respondents indicate the CIO’s key responsibilities in three years’ time will be limited to all internal IT efforts or all internal IT efforts in combination with innovation.

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