Why digital investment doesn't always pay off

  • Digital
  • April 8, 2014
  • StopPress Team
Why digital investment doesn't always pay off

Companies are spending more on going digital but if the CEO isn't leading the charge or the heads of IT and marketing are at odds, that money will go to waste. That's according to consultants PwC, whose sixth annual Digital IQ survey shows only one in five businesses and IT execs globally genuinely get what digital means for their business and how to use technology to reach their business goals.

The company's digital market leader Paul Brabin cites a separate study that shows organisations that make the most from their technology investments are twice as likely to grow revenue and be profitable and innovative. Worldwide IT spend is tipped to grow more than three percent this year, he says.

"Customers are dictating their terms of engagement with business more than ever before, and demanding a more personalised, responsive and engaging experience, which digital technology can provide," says Brabin. “But how we use technology is everything. For example, what is the use of big data if you can’t understand it and it doesn’t give you any insight?"

PwC has identified five factors that influence a company's 'digital IQ'. They include a CEO who sets and steers a firm's digital vision. According to PwC, 81 percent of top performing companies say their CEO champions using IT to achieve business strategy.

The second behaviour is a strong relationship between the CIO and chief marketing officer. Seventy percent of top performing firms said this relationship was strong, compared with 45 percent of other companies.

"The CEO must ensure that marketing and development teams engage the CIO in early discussions around product, service and customer innovation," says PwC.

Companies should also take an 'outside-in' approach to digital, with the best performing companies being those likely to look to industr analysts, vendors, universities and labs outside their organisation for ideas, as well as those inside their business.

Digital IQ is also about thinking bigger than technology investment, thinking instead about remaking IT to better meet business needs. The fifth behaviour was seeing digital as a function of the whole business rather than a centralised, single function. 

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

Axis 2019: Colenso BBDO to defend its title, leads finalists with FCB and DDB

  • Awards
  • February 21, 2019
  • StopPress Team
Axis 2019: Colenso BBDO to defend its title, leads finalists with FCB and DDB

The finalists for the 2019 Axis Awards have been announced and it’s Colenso BBDO leading the way with 64 mentions, followed by FCB on 55 and DDB on 51.

Read more
Next page
Results for

StopPress provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2019 ICG Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.


Contact Vernene Medcalf at +64 21 628 200 to advertise in StopPress.

View Media Kit