IT Brief New Zealand logo
Technology news for New Zealand's largest enterprises
Story image

Digital investments driving strong revenue growth

By Catherine Knowles
Thu 1 Oct 2015
FYI, this story is more than a year old

An increasing number of organisations are investing in digital technologies, and particular behaviours surrounding these investments are driving business success, according to PwC’s 2015 Digital IQ Survey.

The survey involved nearly 2,000 executives across 51 countries - split equally among business and IT executives.

Looking at the findings, PwC has identified 10 key ways businesses capitalise on digital investments to drive strong revenue growth and profit margin.

Companies responding to the Digital IQ survey with the highest scores across the 10 behaviours are 50% more likely to achieve rapid revenue growth and twice as likely to achieve rapid profit growth when compared to the remaining Digital IQ respondents, according to PwC.

“Everyone talks about digital, but few understand the specific leadership behaviours that drive performance,” says Chris Curran, PwC advisory principal and chief technologist.

“We are seeing signs this is changing, with leading digital practitioners looking to how today’s investments can improve tomorrow’s business results. This is a critical mindset, especially as digital technologies become more pervasive,” he says.

The survey shows executives are seeking more strategic value from digital investments, with 45% stating that their number-one expectation from these investments is revenue growth, followed by 25% seeking better customer experiences and 12% aiming for improved profitability.

Further solidifying the correlation companies are seeing between digital and business success, 31% of global respondents stated they are investing more than 15% of revenue into digital investments.

Overall, companies are prioritising their investments in order to drive revenue and profit growth, but only within the confines of their existing business models.

Only 1% of executives said their number-one expectation for digital was to disrupt their own or other industries. Instead, executives are seeking immediate returns.

In a continuation of a multi-year trend, more CEOs are leading the digital charge, setting the tone for their entire organisations that digital is essential, says PwC.

The CIO’s role also continues to change, from predominantly leading all internal and external digital efforts today (at 40%) to an expected drop-off in three years’ time (to 35%).

A majority (65%) of respondents indicate the CIO’s key responsibilities in three years’ time will be limited to all internal IT efforts or all internal IT efforts in combination with innovation, according to the survey.

PwC’s 10 key behaviours directly related to stronger financial performance are as follows:

  1. The CEO is a champion for digital. 73% of business and IT executives said that their CEO was a champion for digital, a significant increase over the 57% who said they had a CEO champion in 2013.
  2. The executives responsible for digital are involved in setting high-level business strategy. CEOs may set the tone and vision for digital, but those responsible for operationalising digital, often the CIO or CDO, are instrumental in setting high-level business strategy. This is especially true in companies where digital leaders have their own P&Ls and are responsible for a significant share of the business.
  3. Business-aligned digital strategy is agreed upon and shared at the C-level. Organisations and leaders that are aligned are more likely to maximise investments and can better identify areas of overlap and resource gaps that could derail efforts.
  4. Business and digital strategy are well communicated enterprise-wide. Strategy isn’t complete without engagement by everyone in the organisation. Currently, 69% of companies say that business and digital strategy are shared enterprise-wide and last year that figure was 55% and in 2013 it was 50%.
  5. Active engagement with external sources to gather new ideas for applying emerging technologies. Top-performing companies find digital inspiration everywhere, especially outside their organisation. Innovative companies are much more likely to evaluate many emerging technologies, characterising their approach to adoption as one that’s purely technology driven (69%), in contrast to the rest of companies (54%). They also look to a wide variety of sources to seed their idea pipeline, actively engaging with industry analysts (63%), customers (46%), and vendor ecosystems (44%) the most.
  6. Digital enterprise investments are made primarily for competitive advantage. An indicator of evolving roles, 68% of digital spending comes from budgets outside of IT’s budget, a significant increase from 47% the prior year. Also, the executive responsible for digital investment continues to shift, with the CIO (27%) and the CDO (14%) sharing that job with the CEO (34%) and CFO (13%).
  7. Effective utilisation of all data captured to drive business value. Getting value out of data often means using it to guide strategic decisions like how to grow the business or whether to collaborate with competitors. This remains a challenge for executives, citing specifically behavioural and skills barriers, such as understanding which data to use and how it benefits their role, nearly as much as issues with data quality or accuracy.
  8. Proactive evaluation and planning for security and privacy risks in digital enterprise projects. As companies add new technologies, customers, partners, devices, and data, there are ever more interdependencies and risks to address. That’s the baseline today. What’s different when it comes to Digital IQ is the level of proactivity required. Businesses need to consistently think about how their cybersecurity strategies can help build brand, competitive advantage, and shareholder value.
  9. A single, multi-year digital enterprise roadmap that includes business capabilities and processes as well as digital and IT components. Progress has ebbed and flowed as digital has become more pervasive in the enterprise while at the same time also more fragmented. Today, 53% of companies have a comprehensive roadmap that includes business capabilities and processes, as well as digital and IT components. Four years ago 63% of companies did.
  10. Consistent measurement of outcomes from digital technology investments. Consistency in measurement is also crucial. Businesses and their boards want to see the value they’re achieving from digital investments. Top-performing companies lead lower performing ones here again (79% vs. 72%). Demonstrating this requires a combination of traditional metrics (like ROI) to track against growth goals, as well as newer ones for measuring more disruptive investments.
Related stories
Top stories
Story image
Malware
New vulnerabilities found in Nuspire’s Q1 2022 Threat Report
“Threat actors are quickly adjusting their tactics and these exploits tend to get industry attention, but the threat posed by older and attacks still persists."
Story image
Apricorn
Data backup plans inadequate, data still at risk - study
The Apricorn 2022 Global IT Security Survey revealed that while the majority organisations have data backup plans in place, data for many are at risk.
Story image
Qualys
Qualys updates Cloud Platform solution with rapid remediation
The new update is designed to enable organisations to fix asset misconfigurations, patch OS and third-party applications, and deploy custom software.
Story image
Digital Transformation
Pluralsight and Ingram Micro Cloud team up on cloud initiative
Pluralsight has teamed with Ingram Micro Cloud to build upon cloud competence and maturity internally, and externally support partners’ capabilities.
Story image
Commerce Commission
ComCom appeals $2.25 million fine in Vodafone FibreX case
The Commerce Commission has filed an appeal in the High Court against a $2.25 million fine imposed on Vodafone NZ for its offending under the Fair Trading Act.
Story image
Fortinet
Fortinet's Security Fabric hits new record for integrations
The Fortinet Security Fabric has surpassed 500 technology integrations with more than 300 Fabric-Ready Technology Alliance Partners.
Story image
Artificial Intelligence
How to ensure ethical deployment of AI implementations
The increase in automation and machine technology such as AI and machine learning has unlocked a whole new level of scale and service to organisations. 
Story image
Customer experience
Research unveils precarious customer loyalty for retailers
New research has found customers are reassessing established brand loyalties as their priorities and behaviours shift.
Story image
Artificial Intelligence
CFOs using digital workers and AI to prevent unnecessary loss
New technology is now allowing CFOs to use digital workers to automate their accounting processes, making it easier for them to avoid unnecessary losses.
Story image
Vodafone
Vodafone NZ buys remaining stake in retail joint venture
Vodafone New Zealand has purchased the remaining 50% stake in the specialist joint venture (JV) with private equity company Millennium Corp.
Story image
Artificial Intelligence
SAS announces new products amid cloud portfolio success
Analytics and AI company SAS is deepening its broad industry portfolio with offerings that support life sciences, energy, and martech.
Story image
Ransomware
A third of companies paying ransom don’t recover data - report
Veeam's report finds 76% of businesses who are victims of cyberattacks paid the ransom to recover data, but a third were still unable to get their information back.
Story image
Supply chain
Jetstack promotes better security with supply chain toolkit
The web-based resource is designed to help organisations evaluate and plan the crucial steps they need to establish effective software supply chain security.
Exabeam
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image
Story image
Wireless
Cradlepoint expands its Cellular Intelligence capabilities
Cradlepoint has announced additional Cellular Intelligence capabilities with its NetCloud service.
Story image
Cybersecurity
The 'A-B-C' of effective application security
Software applications have been a key tool for businesses for decades, but the way they are designed and operated has changed during the past few years.
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
Story image
Digital Transformation
How to modernise legacy apps without compromising security
At a time when digital transformation has become central to business, even the most important applications come with a ‘use-by’ date.
Story image
Cybersecurity
Managed service providers: effective scoping to avoid costly vendor pitfalls
Managed security services are outsourced services focusing on the security and resilience of business networks.
Darktrace
Threat actors are exploiting weaknesses in interconnected IT/OT ecosystems. Darktrace illuminates your entire business and takes targeted action to stop emerging attacks.
Link image
Story image
Excel
Could your Excel practices be harming your business?
While Excel has been the de-facto standard for budgeting, planning, and forecasting, is it alone, enough to support organisations in the global marketplace that’s facing rapid changes due to digital transformation?
Story image
Workato
Workato unveils enhancements to enterprise automation platform
"The extra layer of protection with EKM, zero-logging, and hourly key rotation gives customers a lot more visibility and control over more sensitive data."
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Ransomware
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Safety
Voxel hits total funding of $18M following ongoing wins
Since raising its seed round in September, Voxel has grown at pace, by decreasing on-site injuries by upwards of 80% and increasing operational productivity.
Softiron
For every 10PB of storage run on HyperDrive vs. comparable alternatives, an estimated 6,656 tonnes of CO₂ are saved by reduced energy consumption alone over its lifespan. That’s the equivalent of taking nearly 1,500 cars off the road for a year.
Link image
Story image
Microsoft
PwC NZ unveils new Cloud Security Operations Center
PwC New Zealand has unveiled its new Cloud Security Operations Center for the entire Microsoft technology stack.
Story image
Sustainability
Power at the edge: the role of data centers in sustainability
The Singaporean moratorium on new data center projects was recently lifted, with one of the conditions being an increased focus on power efficiency and sustainability.
Story image
Remote Working
How zero trust and SD-WANs can support productive remote working
The way people connect with applications and data has changed, users are remotely accessing resources that could be stored anywhere from a corporate data center to the cloud.
Story image
SaaS
Rubrik Security Cloud marks 'next frontier' in cybersecurity
"The next frontier in cybersecurity pairs the investments in infrastructure security with data security giving companies security from the point of data."
Story image
Remote Working
IT teams deploy powerful technologies to enable remote work
"We found that IT teams mastered the challenges of remote work last year in large part by employing powerful yet easy-to-use technologies."
Story image
Sustainability
Grasping the opportunity to rethink the metrics of a sustainable data centre
A data centre traditionally has two distinct operations teams: the Facility Operations team, and the IT Operations team. Collaboration between them is the key to defining, measuring, and delivering long-term efficiency and sustainability improvements.
Booster
Booster Innovation Fund. A fund of Kiwi ingenuity – for Kiwi investors.
Link image
Story image
Cybersecurity
NCSC advisory highlights poor security configurations
The GCSB's National Cyber Security Centre (NCSC) has released a cyber security advisory identifying commonly exploited controls and practices.
Story image
Cybersecurity
A10 Networks finds over 15 million DDoS weapons in 2021
A10 Networks notes that in the 2H 2021 reporting period, its security research team tracked more than 15.4 million Distributed Denial-of-Service (DDoS) weapons.
Story image
Nozomi Networks
Nozomi Networks, Siemens reveal software integration
Nozomi Networks and Siemens have extended their partnership by embedding Nozomi Networks’ software into the Siemens Scalance LPE local processing engine.
Story image
Wireless Nation
Wireless Nation, N4L provide 4G network to remote NZ schools
Wireless Nation and Network for Learning (N4L) have rolled out the Rural Connectivity Group’s (RCG) new 4G network to better connect three Chatham Islands schools.
Story image
SaaS
Cloudflare launches instant serverless database for dev teams
"Today we’re announcing our first serverless database which we expect will quickly become one of the largest databases in the world."
Story image
Attain
Revenue operations is taking centre stage
As the business world continues to evolve, new demands need to be met to keep up with the ever-changing landscape. 
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Artificial Intelligence
Clear Dynamics closes $35M funding round, invests in global growth
The funding is a major milestone and speaks to Clear Dynamics’ vision for AI-enabled ‘composable’ enterprise software, the company states.
Story image
Collaboration
Meadows exits Ingram Micro New Zealand on a good note
We look at the resignation of Danny Meadows from Ingram Micro's New Zealand Unified Communications & Collaboration business unit.
Story image
CRM
Zendesk announces new conversational CRM solutions
“The last few years have made it obvious that digital is the front door, convenience is paramount and relationships are anchored in conversations."
Story image
Sustainability
Legrand unveils Nexpand, a data center cabinet platform
Legrand has unveiled a new data center cabinet platform, Nexpand, to offer the necessary scalability and future-proof architecture for digital transformation.