PwC’s 2015 Digital IQ survey: Irish firms lag behind global digital investment levels

Irish businesses recognise the growing importance of technology to their financial performance but lag far behind their international counterparts in terms of digital investment.

The contradictory approach of Irish businesses is limiting their potential and stymying digital development, according to new research.

Business leaders here also see a smaller scope for the impact of investing digitally with most viewing it as a way of adding value within the existing structure of their company as opposed to having the potential to change how they operate, PwC’s 2015 Digital IQ survey reveals.

Just 5% of Irish companies expect product innovation and none expect their reputation to be enhanced by investing digitally.

PwC Ireland technology consulting partner David McGee said the results of the survey show Irish companies have some way to go before their actions reflect the growing stock they place in technology.

How do leaders define digital? #DigitalIQ https://t.co/iJd3FgCmnK pic.twitter.com/QHthG7Bxd8

— PwC digital (@PwCNZdigital) November 9, 2015

“While many Irish business leaders understand the value of digital, there is some catching up to do in terms of investing in digital to be on the same playing field as global front runners,” Mr McGee said.

This is the first year Ireland has been included in the survey which incorporates more than 50 countries and gauges the attitudes of 2,000 executives.

Ten ‘critical behaviours’ that translate directly to strong revenue growth and profit margin, and which act as key indicators, are identified by the research, eight of which Irish firms are found wanting in.

Among the areas Irish companies are deemed deficient in are: Engaging their executive teams, effectively using digital data, proactive cybersecurity, and consistently measuring returns from digital investment.

Irish companies are more cautious than global companies when it comes to investing in digital, although the relative lack of investment may be at least partially explained by the difficult financial positions many companies have found themselves in over the past few years.

The survey reveals a somewhat more customer-centric approach from Irish companies, however, with 44% citing an improved customer experience as their number one priority when it comes to digital investments compared to just 25% globally.

By contrast, the number one priority for companies globally is to grow revenue with 45% identifying it as the key investment driver compared to 35% of Irish firms.

One of the biggest impediments to digital advancement here is confusion over digital roles and responsibilities within the company, while third party partnerships are often deemed ineffectual by companies too.

“Everyone talks about digital, but few understand the specific leadership behaviours that drive performance,” Mr McGee said.