In our 2014 Digital IQ survey of almost 1,500 business and technology executives, only 20% of respondents are highly confident in their organization’s Digital IQ—a company’s acumen in understanding, valuing and weaving technology throughout the enterprise.
How can a company raise its Digital IQ and harness the full power of technology to advance their business performance? Top performers—companies that reside in the top quartile for revenue growth, profitability, and innovation—point the way.
We analyzed the responses of top performers to understand what they do differently to fuse business and technology. For top performers, digital isn’t window dressing or corporate speak. Digital is a way of life. Following are five key best practices that top performers employ to outdo the competition:
1. CEO is the Digital Leader
81% of top performers say their CEO is an active champion of using information technology to achieve business goals, compared with 68% of other companies. Executives tell us that CEO involvement in shaping strategy provides them with a competitive advantage. Once the company determines its digital strategy, the CEO must define clear roles, accountability, and governance for how the strategy is executed. The scope should address who is responsible, and how the functional or business unit leaders will work together—for example, what the CMO is responsible for in a customer initiative, what the CIO does, and together what they will deliver and when.
2. CMO and CIO are Collaborative Partners
The CIO and CMO relationship is critical to success because many digital technology initiatives are driven by marketing needs. 70% of top performers say their CIO and CMO have a strong relationship, compared with just 45% of the pack. The growth in digital marketing spending, often independent of IT, has led to debate among industry analysts about whether the marketing organization will soon yield more spending power than the IT department.