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Study: Digital Maturity Linked to Higher Revenue & Profits


Sponsored by West Monroe

The more digitally mature your organization is, the higher your revenue growth and profits — no matter what industry you’re in – according to new research. Among the most digitally mature companies, four characteristics correlate most with financial performance. Read more

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The more digitally mature your organization, the higher your revenue growth and profit margins—no matter what industry you’re in. This is the primary finding of new research that surveyed more than 400 business leaders on 16 characteristics of their business.

Among the most digitally mature companies, four characteristics correlate most with financial performance:

  1. A Clear Vision and Dedicated Leadership: Two-thirds of respondents from very digitally mature organizations strongly agree that they have a clear digital vision; only 2 percent of digitally immature organizations said the same.
  2. Engaged Employees Who are Intrinsically Motivated: 73 percent of very digitally mature organizations strongly agree that their employees are engaged and intrinsically motivated; 10 percent of digitally immature organizations said the same.
  3. An Ability to Leverage Data for Insights: More than four in five respondents from very digitally mature organizations strongly agree their organization is highly adept at leveraging data for insights, predictive outcomes, and business growth; 2 percent of digitally immature organizations could say that.
  4. Digital Interactions are Convenient and Effortless: 70 percent of digitally mature organizations strongly agree that their customer service division ensures that customers’ digital interactions are convenient, effortless, and enjoyable; 2 percent of digitally immature organizations said the same.

Digital technology is not a cost center, but an enabler of productivity and stronger margins

We operate in a rapidly changing landscape where customers have taken the reins, predictive analytics are replacing historical reports, and every single interaction creates and consumes data—instantaneously. In short: It’s a digital world—we’re just living in it. 

If financial executives want their organizations to keep up, they’ll have to think of “digital” as more than just a catch-all buzzword that only applies to certain segments of their business, or as the latest technology update, or as a cost center that eats away at profits. The future is here, now, and it looks and feels like Amazon, Google, and Apple. Catching up means becoming a little bit more like them: streamlining operations, getting to market faster, and better anticipating customer shifts. 

Across all industries surveyed, approximately 50 percent of organizations are investing in digitizing their operating model. And organizations that are extremely digitally mature are spending 35 percent of overall budget on digital initiatives— highlighting the importance of spend in becoming digitally mature and, consequently, protecting oneself against both industry and non-industry competitors. 

The drive to digital isn’t industry-specific, but embodies a broader shift to a digital world where competitors aren’t just within one’s industry, but also outside. Amazon, Apple, and Google were frequently cited as the biggest threats in the survey of executives be it healthcare, energy, consumer and industrial products, or financial services. 

Digital maturity can be achieved faster by focusing on a finite group of investments 

Not all characteristics of digital maturity are made equal. When looking at the myriad of challenges posed by digital, the biggest challenge for most CFOs is knowing which elements to focus on to drive revenue for their particular organization, as well as when (and how) they should implement those elements to best adapt their business to the digital world. 

It’s crucial that organizations take stock of where they are in their digital journey. Only by understanding (and accepting) where you’re at, can you prioritize accordingly to get where you want to go. What the survey found was that digitally immature companies should not try to implement all 16 characteristics to fast-track the maturity of their organization. Instead, they should focus on certain activities that will propel them to the next level faster than if they focused on others, or all of them. 

In this paper, you will learn what CFOs need to know about digital maturity to make the right investments for their organizations. The paper will also cover:

  • What characteristics make an organization digitally mature
  • How digital maturity correlates to revenue growth and higher net profits (and why it matters)
  • How to emulate digitally mature companies to develop a digital vision that delivers
  • What industries are ahead in digital, which are behind, and why 

Download your copy here.