The speed at which Digital Change moves often outpaces the rate at which many organisations operate. PwC's 6th Annual Digital IQ survey sheds some light on the mindset of senior level IT and business leaders across Australia and the world.

Australia's 'Digital IQ' is below
those in other nations

Digital IQ is a company’s acumen at understanding, valuing, and weaving technology throughout the enterprise.

According to PwC’s 17th Annual CEO Survey, Australian CEOs recognise that technology will be a critical transformation factor for their business

Source: PwC Australia, '17th Annual Global CEO Survey'

In the next three years, business leaders anticipate that 'technological breakthroughs', 'shifts in economic power' and 'accelerating urbanisation' would have the biggest impact

Technological breakthroughs
Shifts in
economic power
Accelerating urbanisation
Base: 54 respondents - Source: PwC's 6th Annual Digital IQ Survey

Though aware of the threats, there is a gap in addressing this in company strategy

98% of Australian business leaders say they are 'concerned' about the speed of technological change threatening their growth prospects, but only 80% are addressing it in their strategies

Source: PwC's 6th Annual Digital IQ Survey

Over the next 3-5 years their top priorities are private cloud, data and open source applications

Private cloud
Data mining & analysis
Open source applications
Public cloud applications
Mobile apps and technologies for customers
Base: 54 respondents - Source: PwC's 6th Annual Digital IQ Survey

Despite this gap, Australian and S.E. Asian business leaders are on average more confident in their corporate strategies

Australian businesses digitally interact with customers equally through web and mobile sites

Across Australia and S.E. Asia, digital interactions are skewed towards web and mobile sites, with relatively low activity in m-commerce compared to other international counterparts

In what ways are you interacting with your customers?

Their top preference when it comes to interacting with customers via mobile technologies is to get feedback and solve problems, rather than to quote or sell products. This behaviour is also mirrored across S.E. Asia.

Realising the power offered through analytics, Australian businesses are using this tool across a variety of area, most notably marketing, strategy and finance

Big Data is front and centre for Australian business leaders, compared to their counterparts in South East Asia and across the world

The skills required to integrate digital capability across Australian businesses is improving

Leaders recognise that traditional skills need to be complemented by digital skills in order to meet the needs of the modern day enterprise

How would you rate your organisation's IT department on the following skills needed to integrate digital capabilities into your core business?

Technology prototyping
User Experience design
Strategic partner management
Technical Architecture
Enterprise Architecture

Although a high percentage of IT initiatives are being delivered on time and within planned scope, it seems there is room for improvement when it comes to meeting budget expectations

On average, how often did strategic IT initiatives fall within each of the following delivery categories in the last 12 months?

Delivered on time
Delivered with 100% of planned scope
Delivered at or below budget

However few are embracing the Agile way of working

Although approaching digital and technology projects using Agile methodology and process can improve and accelerate integrated digital delivery. Australian business leaders are not embracing this approach.

To what extent are you currently using Agile processes with your organisations?

The importance of being innovative

Australian business leaders recognise the importance of taking an 'outside-in' approach to innovation

Places where companies look for innovation: Outside-in approaches


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S.E. Asia

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Internally focused innovation in Australian business is
primarily driven through IT

Places where companies look for innovation: Inside-in approaches


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S.E. Asia

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Australian measurement of innovation is heavily skewed towards quantity of ideas, rather than commercial and value driven metrics

How is technology innovation success measured, if at all, in your company?

PwC’s 6th Annual Digital IQ survey was conducted in the fall of 2013. The global survey included 1,494 respondents from 36 countries. Answers were aggregated into five regions and 11 industries. Respondents were evenly divided between IT and business leaders. Two-thirds of respondents work in organisations with revenues of $1 billion or greater and 37% have revenues greater than $5 billion. The above statistics refer to the following countries: Australia (54 respondents), South East (S.E) Asia* (70 respondents), United States of America (454 respondents). *Respondents from SE Asia represent Indonesia, Malaysia, Phillipines, Singapore, Thailand and Vietnam.

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