Ireland’s Digital IQ below Global Average
According to PWC, Irish company’s cautious approach to investment in digital is hampering potential for “rapid revenue and profit growth”.
This week PricewaterhouseCoopers produced their annual Digital IQ survey. This study of more than 2,000 executives across 51 countries examines how well companies understand the value of technology and use it in their business. Now in its seventh year, the survey includes Ireland for the first time.
“PWC identified 10 critical behaviours that translate directly into strong revenue growth and profit margins” according to an article in the Irish Times. The survey found that Irish companies are “more cautious” than global companies when it comes to investing in digital. For example, just one in 10 companies in Ireland are spending more than 15 per cent of revenues on digital whilst creating better customer experiences is the number-one priority for digital investments in Ireland.
These ’10 critical behaviours’ could also be used as a template for carrying out an assessment of company culture and attitude towards digital marketing.
Some key statistics from the report:
– Percentage of revenue spent on Digital: Ireland 10% : Global 33%
– Use digital to create better customer experience: Ireland 44% : Global 25%
– Use digital to grow revenue: Ireland 35% : Global 45%
– Companies with dedicated Digital Team: Ireland 42% : Global 65%
– Companies with culture to embrace rapid change: Ireland 56% : Global 68%
Speaking about the Irish results in the Irish Times, David McGee of PwC said companies have “some catching up to do” in terms of utilising digital platforms. “While many Irish business leaders understand the value of digital, there is some catching up to do in terms of investing in digital to be on the same playing field as global front runners,” he said.
“Key areas for improvement include increasing executive team engagement, making more effective use of business data and consistently measuring outcomes. As our economy continues on a renewed growth path, more investment is needed by companies in Ireland to realise the full potential of digital.”
Mr McGee added that investment in digital was a “critical mind-set” for companies. “Everyone talks about digital, but few understand the specific leadership behaviours that drive performance,” he said.
According to the article, PwC said the top performers who have the highest scores across the 10 behaviours were 50% more likely to achieve rapid growth to revenues and are twice as likely to achieve rapid profit growth when compared to the remaining Digital IQ respondents.
The full report is available here.