Key survey takeaways

2017 Global Digital IQ® SurveyExecutive Summary

Since 2007, PwC has been conducting research on the Digital IQ of companies globally. This year marks the release of our 10th anniversary survey of business and IT executives, and contains unique insights into how businesses are capitalizing on technology and how they think about technology's role in their strategic approach to digital transformation.

Digital is a moving targetTHE TAKEAWAYS

In 2007, “digital” was just another name for “IT.” But today's definition of digital is all-encompassing and refers to emerging technology, the cloud, artificial intelligence, internet of things and more. Business leaders point to the added complexity and higher stakes around digital today as possible explanations.

THE DATA

Digital IQ has dropped• Just 52% of companies rate their Digital IQ as “strong/very strong,” down from 67% in 2015 and 66% in 2014.

Emerging tech investment is stagnant• In 2007, the average investment in emerging technology (of the total digital technology budget) was 16.8%. • Today, it is only marginally higher at 17.9%, despite the radically changed landscape and the importance of digital to

business success.

Digital is hard• The most common digital obstacles are: lack of properly skilled teams (63%), outdated technologies (61%), lack of integration

of new and existing data and tech (59%) and inflexible or slow processes (42%).

2016

2015

2014

52%

67%

66%

2007 17%

18%Share oftechnologybudget devotedto emergingtech investment:

Executives lose confidence in their Digital IQ

Percentage of companies that rate their Digital IQ as strong: 55%

Most common current and emerging obstacles:• Lack of properly skilled teams (63%)• Outdated technologies (61%)• Lack of integration of new and existing data and tech (59%)• Inflexible or slow processes (42%)

of executives say digital projects are delivered within 100% scope

Only

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The surveyThe 2017 edition was fielded between September and November 2016, and included 2,216 respondents—evenly divided between IT and business leaders—from 53 countries. Representative of this pool, 62% of executives work in organizations with revenues of $1 billion or greater, and 38% have revenues between $500 million and $1 billion.

2,216executives

53countries

62%with revenues of $1 billion or greater

38%have revenues between $500 million and $1 billion

from

and

2016

Emerging technology: next-generation digitalTHE TAKEAWAYS

In 2007, “digital” meant “IT.” Now it includes a company’s broad view of technology, including emerging tech (AI, IoT) and its impact on all parts of the business, including customer and employee experience, culture and forward-thinking products.

THE DATA

Moving towards a holistic definition• Today, 29% of executives define “digital” as “IT” only.• In 2007 (first year of the survey), 85% of respondents said IT played a major role in their business strategy.

Potential for transformation • In 2007, executives identified these specific technologies as most important to transforming their businesses: • Data mining and analysis • Search technologies • Service-oriented architecture • Virtual collaboration

Digital = making money • “Grow revenue” was the top reason given by executives for why they make digital investments, followed by “increase

profits” and “create better customer experiences.” • Much lower on the scale were “innovate our products,” “improve employee retention & recruitment” and “combat new

industry entrants.”

People power: why human experience mattersTHE TAKEAWAYS

Digital IQ is about people’s ability to adapt to change and utilize digital and emerging tech. Human experience is an underdeveloped aspect of Digital IQ, with measurable examples across customer, employee, organizational and cultural spheres.

THE DATA

CEO as a digital champion• 68% of executives believe their CEO is a champion for digital, up from just

33% in 2007.

New tech hasn't edged out the workforce, but a skills gap does exist • 82% of top performing companies surveyed say they focus on the ways

new technologies will affect human experiences including those of employees and customers.

• Executives rated their employee’s skills with emerging tech; the lowest rated were in virtual reality, augmented reality, drones and blockchain.

Executive Summary

Digital is still human-based

(robots haven’t taken over yet)

70%of executives say they focus on ways new technologies will affect human experience

Confusion over customers: companies aren't prioritizingexperience, but they are pouring money into it

However, the goal of creating better customer experience has declined in importance

2015

2016

25%

10%

Percentage of executives who rank customer experience as a top priority:

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2017 Global Digital IQ® Survey

Reasons for investments for executives:

© 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Digital IQ® is a trademark of PricewaterhouseCoopers LLP US. This report is for general purposes only, and is not a substitute for consultation with professional advisors. Visit www.pwc.com/digitaliq for more information.

Grow revenue Increase profits Reduce costs

73% 47% 40%