Irish firms lag behind the world’s top performing companies in many key digital behaviours, according to PricewaterhouseCoopers annual Digital IQ survey.
The study of more than 2,000 executives across 51 countries examines how well companies understand the value of technology and use it in their business. Now in its seventh year, the survey included Ireland for the first time.
PwC identified 10 critical behaviours that translate directly to strong revenue growth and profit margin. Ireland’s overall Digital IQ score of 75.8 was slightly behind the global average of 77.2.
The survey found Irish companies are “more cautious” than global companies when it comes to investing in digital. For example, just one in 10 companies in Ireland are spending more than 15 per cent of revenues on digital.
Globally one in three companies are spending more than 15 per cent of revenues on digital. Two thirds (68 per cent) of this spend is in non IT areas, such as marketing, sales, customer service and operations.
At the same time, executives are seeking more strategic value from digital investments. In Ireland, creating better customer experiences is the number-one priority for digital investments (Ireland: 44 per cent; globally: 25 per cent). Globally, the priority for digital investments is growing revenue (Ireland 35 per cent; globally 45 per cent).
The survey found that 42 per cent of Irish companies have a dedicated team for digital innovation compared to 65 per cent globally. Just over half (56 per cent) of Irish respondents said their organisation’s culture embraces rapid change and disruption compared to 68 per cent globally.
Speaking about the Irish results, David McGee of PwC said companies have “some catching up to do” in terms of utilising digital platforms. “While many Irish business leaders understand the value of digital, there is some catching up to do in terms of investing in digital to be on the same playing field as global front runners,” he said.
“Key areas for improvement include increasing executive team engagement, making more effective use of business data and consistently measuring outcomes. As our economy continues on a renewed growth path, more investment is needed by companies in Ireland to realise the full potential of digital.”
Mr McGee added that investment in digital was a “critical mind-set” for companies. “Everyone talks about digital, but few understand the specific leadership behaviours that drive performance,” he said.
“We are seeing signs that this is changing in Ireland and globally, with leading digital practitioners looking at how today’s investments can improve tomorrow’s business results. This is a critical mind-set, especially as digital technologies become more pervasive.”
PwC said the top performers with the highest scores across the 10 behaviours were 50 per cent more likely to achieve rapid revenue growth and are twice as likely to achieve rapid profit growth when compared to the remaining Digital IQ respondents.
