The digitization efforts across organizations around the globe are picking up momentum. A report from McKinsey came out today sharing how the efforts around digital are gaining steam. It shows that we are making a good progress around digital as an industry trend around digitization. Here are few of the key takeaways about digitization from the report:
- Executives say their CEOs are more involved in digital efforts than ever before and that their enterprises are now investing enough to meet their overall digital goals.
- The future spending on digital will increase, and that a large portion of future company growth will be driven by digital efforts. But organizational challenges and a dearth of talent are common, significant hurdles that prevent companies from scaling up their digital efforts or seeing clear returns on their investments. So are limited accountability and a poor understanding of potential value.
- Expectations for growth are highest at companies that pursue digital to create new business.
- Executives expect the largest share of their digital growth in the coming years will be from digital customer engagement, followed closely by the digital innovation of products, operating models, or business models.
Digital customer engagement is paramount in both strategy and spending.
- Larger companies (those with annual revenues of $1 billion or more) in particular are struggling with unsuitable organizational structures and inflexible business processes.
- Many executives also agree that digital talent remains a trouble area for their organizations. Only one-third of respondents say at least one in ten of their employees spends any time working on digital projects.
You can read the complete report on McKinsey
Header image credits to http://dsl.uncc.edu/dsl/services/digitization