For the last ten years, PwC has been measuring the digital acumen of business leaders in its Digital IQ Survey. The 2017 report canvassed the opinions of 2,216 executives across the globe (50 of them in Australia) on topics including leadership, strategy, customer and employee experience, and emerging technology.
A measurement of how well the value of digital technology is understood and harnessed by the organisation, it has become apparent over the last decade that Digital IQ is slipping. This doesn’t mean to say enterprises are falling behind – rather, they are struggling to keep up with accelerating standards.
We extracted the Australian results to build a picture of how local organisations are approaching digital transformation. Here’s what we found:
- Australian companies lean more towards a CDO
They have less confidence in executives than their global counterparts do. This is true of all positions except the CDO – a role that Australian firms are more likely to employ.
- The CIO isn’t as empowered
CIOs are considered the most digitally savvy of all the C-suite. Yet, in Australia only 10% of CIOs are involved in setting digital strategy.
- Business model innovation is not a priority
Digital is less likely to be a significant part of the strategy, and investment efforts are focused on the immediate returns of beating the competition and growing revenue rather than the more far-sighted goals of business model innovation.
- Australia prioritises technology
Technology platforms are treated as the most important digital investment. The definition of ‘digital’ is also heavily skewed towards IT and technology, rather than a whole-of-business transformation.
- Investment in robotics is on the rise
Whilst the internet of things (IoT) and artificial intelligence (AI) are the investment priorities of today, funding for the IoT is set to be downgraded in favour of investment in robotics over the next few years.
- Improving customer experience is a key concern
Australian companies place a greater focus on the ways new technologies will affect human experiences and they’re more likely to invest in customer experience initiatives (22% ranked it as top investment versus 12% globally).