Organizations that prioritize ongoing digital initiatives see significant revenue growth, according to new research from West Monroe Partners. One in two organizations with an annual revenue growth rate of at least 40% have a clear leader in charge of spearheading the business’ digital efforts, said the Thursday press release.
The research survey was taken by 407 executives across the healthcare, financial services, energy and utilities, as well as consumer and industrial products industries. The report found a clear relationship between revenue growth and an organization’s digital maturity, based on the data collected.
SEE: Digital transformation: A guide for CXOs (Tech Pro Research)
Financial services is the most digitally mature industry, according to the report, and the healthcare industry is the least far along. However, energy and utilities companies appeared to be spending more on digital endeavors than any other industry, said the report, meaning their digital maturity will likely increase.
Organizations considered highly digitally mature are spending at least 35% of their overall budget on digital initiatives, said the release. Additionally, organizations that focus on experiences and data forge more digital transformations. Instead of implementing “technology for technology’s sake,” companies must think about the tangible advantages of technology in the long-term goals of the company, said the report.
Digital success isn’t only reliant on spending, though, as leadership plays a huge role, according to the report.
Some 51% of high-growth organizations have a strong digital leader, said the report. And strong digital leaders are those who take action in three distinct ways, said to the report. Digital leaders are those who challenge the current way of thinking, understand the role of firm culture and change, and nurture a team of digital achievers.
Leadership is known to have a huge impact on how digital transformations are executed, as executives are the ones who set the stage for the rest of the company. A lack of top-down communication statistically sets a company up for digital transformation failure, according to the IDC. If companies want to see higher revenue growth rates, then CXOs must keep digital transformations a consistent priority.
The big takeaways for tech leaders:
- One in two organizations with an annual revenue growth of at least 40% have high digital maturity. — West Monroe Partners, 2018
- 51% of organizations with high revenue growth have strong digital leadership. — West Monroe Partners, 2018
Image: iStockphoto/Olivier Le Moal