You may have heard the importance of using technology to “transform your business” and may even agree that this is needed, but do you know how to go about it, how much to invest, what to expect and where to start? If your answer is “no” to one or more of these questions, you are certainly not alone.
In fact, a recent survey conducted by McKinsey & Company and cited in the New York Times tech blog “Bits” shows that many C-level executives are struggling with the ins and outs of where and how to go about investing in new technology to grow and change their business. The report cited opinions gleaned from almost 1,500 CEOs, CFOs and CIOs about top-of-mind technologies such as cloud computing, mobility, analytics and digital media (see article athttp://goo.gl/5cKKy.)
First, the good news for technology providers: about one-quarter of the respondents surveyed actually expect their companies to spend at least 3 percent of their total cost base on such digital initiatives, and two-thirds see digital business practices increasing their operating income within the next three years. Twelve percent of them thought it would raise operating income by 30 percent or more.
Now the bad news: Half of respondents don’t think their organizations are properly structured to take advantage of new technologies. Forty-five percent see a lack of internal leadership in fostering use of the technologies. The survey also uncovered a large disconnect between how many CEOs think they will invest three percent of their total corporate costs on digital initiatives (40 percent) and how many CIOs believe this is true (12 percent).
Another key finding was that data and analytics are expected to generate more value than digital marketing or social media. The three major areas where people expect to see results from analytics are customer insights and targeting, budgeting and forecasting, and operations and supply chain management.
How does this information translate for your company? If you were able to access all of your corporate information in real time, analyze it in virtually no time and make decisions faster wherever you happen to be – what would you do first to make your business tick better?
