4. Digital Readiness is the extent to
which an organization combines
• top management’s awareness and
advocacy for digital topics with
• the adoption of digital marketing
tools and processes which are
• effectively used to increase
customer agility and drive digital
change across the entire value
chain
„
„
Page 4!
5. DIGITAL READINESS DRIVES CUSTOMER AGILITY AND FIRM
PERFORMANCE
Page 5!
Firm
Performance
3
1
2
Customer
Agility
Digital
Adoption
Top
Management
advocacy
• Digital awareness
and adoption
• Digital marketing
& sales tools,
processes and
know-how
• Marketing
leadership
• Revenue growth
• Profitability
• Market share
• Sensing dynami-
cally changing
customer needs
• Responding quick-
ly and appropri-
ately on product and
service level
• Digital topics on top
management
agenda
• Top management
know-how
Digital Readiness
6. Customer Agility
DIGITAL READINESS DRIVES FIRM PERFORMANCE
Page 6!
Top
Management
Advocacy
Digital
Adoption
Marketing
Customer
Sensing
Customer
Responding
Firm
Performance
88%
66%
25%
45%
45%
7. DIGITAL LEADERS, FOLLOWERS, LAGGARDS
Top Management Advocacy calculated through mean value of Top Management Advocacy question set: low = X ≤ 3; middle = 3 <
X ≤
4.5; high = 4.5 <
X
≤
5
Customer Agility calculated through mean value of Customer Agility question set: low = X ≤ 3; middle = 3 <
X ≤
4.5; high = 4.5 <
X
≤
5
DIGITAL
LAGGARDS
(n=94; 30,7%)
DIGITAL LEADERS
(n=80; 26,1%)
DIGITAL
FOLLOWERS
(n=132; 43,1%)
HIGH
LOW
LOW HIGHMIDDLE
MIDDLE
Customer Agility
TopManagementAdvocacy
Page 7!
8. THE ROLE OF TOP MANAGEMENT
Page 8!
=
Leader
=
Follower
=
Laggard
Digital Vision
A culture of
digital change
(n=306), denoted is share of top two answers*
98% 98%
82%
67%
28%
15%
Digital topics are
regularly part of our
management agenda.
Our top management can
draw on extensive know-
how regarding digital
topics.
* on a 5-point Likert scale ranging from 1 = „Does not apply at all“ to 5 = „Fully applies“; significant differences between groups at the 5% level regarding mean answer
9. DIGITAL ADOPTION IN MARKETING & SALES
Page 9!
Digital
Marketing &
Sales Tools
We have developed digital strategies regarding…
denoted is share of top two answers*
93% 92%
76%
84%
92%
79%
73% 69%
62%
42% 40%
31%
Website Mobile Social Media Innovation /
generating ideas
n=285 n=286 n=277 n=288
=
Leader
=
Follower
=
Laggard
* on a 5-point Likert scale ranging from 1 = „Does not apply at all“ to 5 = „Fully applies“; significant differences between groups at the 5% level regarding mean answer
10. DEFINITION OF CUSTOMER AGILITY
Page 10!
Customer Sensing
Capability
Customer Res-
ponding Capability
98% 95%
88%
78%
29%
18%
We are able to recognize
changes in customers' needs
and desires early on.
We immediately implement
changes once we recognize
customers' dissatisfaction
with our products or services.
Sensing and Responding capabilities
(n=306), denoted is share of top two answers*
=
Leader
=
Follower
=
Laggard
* on a 5-point Likert scale ranging from 1 = „Does not apply at all“ to 5 = „Fully applies“; significant differences between groups at the 5% level regarding mean answer
11. PERFORMANCE DIFFERENCES BETWEEN LEADERS,
FOLLOWERS AND LAGGARDS
=
Leader
=
Follower
=
Laggard
Self assessment of companies compared to strongest competitors
(n=306), denoted is share of top two answers*
75% 75%
90%
83% 81%
60% 60%
76%
67%
60%
36%
30%
40%
22% 24%
Market share Profitability Customer
satisfaction /
loyalty
Product and
service innovation
Ability to attract
and retain
qualified human
resources
* on a 5-point Likert scale ranging from 1 = „Much worse “ to 5 = „Much better“; significant differences between groups at the 5% level regarding mean answer
Leaders outperform Followers and Laggards on all major KPIs and capabilities!
Page 11!
12. TOP 3 TAKEAWAYS
Page 12!
1. Digital Readiness drives more than 50%
of firm performance
2. Without Top Management advocacy,
digital remains communication 2.0
– instead of being a central driver for
growth
3. Customer Agility replaces customer
orientation - continuous integration of
customers fosters innovation and
generates new business models
13. CONTACTS FOR FURTHER INFORMATION
Page 13!
Coming soon: www.digital-readiness.com
Dr. Markus Pfeiffer
Founding Partner Bloom Partners
mpfeiffer@bloom-partners.com
+49 (0) 89 124 1395-10
Jörn Dickhaut
Partner at Bloom Partners
jdickhaut@bloom-partners.com
+49 (0) 89 124 1395-20
Bloom Partners,
Hohenstaufenstr. 1
80801 Munich, Germany
www.bloom-partners.de
Bloom Partners,
Hohenstaufenstr. 1
80801 Munich, Germany
www.bloom-partners.de