85% of digital transformations fail. Let’s talk about why.
A decade ago, just 33% of our global respondents said their CEO was a champion for digital. Now, that figure is 68% – and even higher in Australia. Digital-driven change sits top-of-mind for the business leaders of today and transformation is now as much about business model and customer or employee experience as it is about the technology behind such changes.
The statistics in PwC’s report suggest that the Digital IQ of Australian leadership is lagging because it fails to seriously incorporate digital into the fabric of the business.
When asked ‘If you do not have a CDO, why not?’ most respondents said it was because the CIO or another executive fills the role. In Australia, however, almost a quarter said it was because digital isn’t a significant part of the strategy (only 3% of global respondents, and 2% of those outside Asia-Pacific, answered the same).
Globally and locally, CDOs are not given the mandate to drive critical digital activities: only 2% of businesses here say their CDO drives the corporate strategy.
Australians were much more likely to say ‘Our CEO is a champion for digital’. If this isn’t backed up by a roadmap to match, then being a champion of digital is, in some respects, irrelevant. The CEO is often focused on maintaining business-as-usual – so the fact that Australian companies leave high-level digital strategy largely in their hands, and not other digital executives, is a red flag.
In addition, results showed that nearly all Australian companies agreed that ‘digital technology investments are made primarily for competitive advantage’.
The takeaway here is that we’ve got a good story and the right level of sponsorship from the top – but the investments are more about the immediate returns of beating the competition, than around the more far-sighted goals of business model innovation.
Airbnb's Australia and NZ Country Manager Sam McDonagh shares his insights on the future of digital. Hear more from global leaders in our 2017 PwC Digital IQ survey
Stellar Asia Pacific CEO Melissa Hamilton shares her insights on creating value from digital. Hear more from global leaders in our 2017 PwC Digital IQ survey
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Partner, PwC Australia
Tel: +61 3 8603 4968