A decade of digital:How far have we come?

Ten years ago, PwC set out to assess how businesses view, invest in, and adopt digital technology. Back then, “digital” was just another name for “IT.” But today, "digital" is all-encompassing, and refers both to established technologies like cloud and mobile, as well as emerging ones like artificial intelligence and the internet of things. Digital is about much more than just tech, it's a mindset, a way of working, and a core part of doing business.

What else has changed? To find out, we surveyed more than 2,000 business and technology executives. Here’s what they had to say:

2016

2015

2014

52%

67%

66%

2016

2007

18%

17%

Share of technology budget devoted to emerging tech investment:

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Most common current and emerging obstacles :• Lack of properly skilled teams (63%)• Outdated technologies (61%)• Lack of integration of new and existing data and tech (59%)• Inflexible or slow processes (42%)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

Executives lose confidence in their Digital IQ

Top performers also:• Have better under standing of the role of human experience in digital technology• Are more likely to resource digital projects with cross-functional teams of business, technology and user experience specialists• Use agile methodologies• Prioritize innovation and emerging technologies

of top performers have a broader definition of digital that goes beyond IT

84%

Reasons for investments for executives:

35%

Reduce costs

45%

Increase profits

76%

Grow revenue

Stronger Digital IQ = better financial performance

49%of companies still determine the adoption of new tech by evaluating available tools, instead of exploring new innovations with specific business needs in mind

Old sourcesanalysts, vendors, competitive intelligence

New sourcescrowdsourcing, university labs, start-ups

Most companies still use an outdated approach to innovation

40%

cite exploring new innovations with specific business needs in mind

43%

have a dedicated team for digital innovation; the rest outsource the process

63%Internet of things

Artifical intelligence

Robotics

Augmented reality

3-D printing

Virtual reality

Drones

Blockchain

63%

31%24%

17%15%

14%11%

Top emerging technologies for investment within three years:

66%of companies say they have a single, multi-year roadmap that includes business and IT processes

This is up from 54% in prior year

Businesses project 72% of their technology spend will be outside of IT

The road to emerging tech: Executives need directions to next-gen digital

Who do executives think has the highest Digital IQ? (out of 100)

68%

CMOCEO

77%

CIO

79%

CDO

85%

Digital leadership roles have shifted

2016

2007

68%

33%

Percentage of executives who said their CEO was a champion for digital:

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

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

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

2015

2016

25%

10%

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

Digital workforce still needs training

25%of executives say they use external resources even when they have internal employees with the digital skills they need

65%of executives say their employees have the skills required for the evolving digital economy

© 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.

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