Over the past decade, digital transformation has progressed significantly in businesses. While digital was once synonymous with IT, it now refers to both established technologies like cloud and mobile as well as emerging technologies like AI and IoT. A survey of over 2,000 executives found that digital projects now encompass more than just technology and are a core part of doing business. However, many businesses still have outdated approaches to innovation and lack skilled teams to implement new digital technologies, resulting in only 55% rating their digital IQ as strong.

1. 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• Outdated technologies (61%)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 sources
analysts, vendors,
competitive intelligence
New sources
crowdsourcing,
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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