Amazing things happen when IT and business leaders work together. Here is the data to prove it
Over the past few years, businesses of all shapes and sizes have been following hard on their IT teams - not only to get them through COVID - related twists and turns, but also to hopefully to give them a brighter future. That means now.
Amazing things happen businesses value the power of IT. This is now evident in a report published by PwC, which highlights a positive relationship when IT professionals and business come together.
A PwC study, based on the responses of 1,040 business leaders and 210 IT directors, reveals that “Digital IQ leaders” were more likely to invest in cloud technologies, including enterprise applications, infrastructure, and platforms development. These Digital IQ leads make up about one-fifth of the tech products surveyed; PwC defines them as leaders "who see eye to eye with their business peers."
"[Digital IQ leaders] also invests heavily in process automation, putting tools in the hands of employees to complete tasks more quickly, leaving more time to dedicate it to work based on value and vision, "reports Jenny Koehler, partner with PwC and author of the report.
65% digital IQ heads
Everyone else 33%
Adoption of new technologies for indoor use
Digital IQ Leaders 40%
Everyone else 25%
Back office processes
Digital IQ Leaders 40%
Everyone else 33%
Front office processes
Digital IQ Leaders 28%
Everyone else 19%
These investments paid off, as the PwC study shows. Digital IQ leaders are more likely to improve financial performance, as well as greater innovation and productivity.
Revenue growth of over 5% over the last three years
Digital IQ Leaders 35%
Everyone else 27%
Time spent on innovation
68% Digital IQ Leaders
Everything else 54%
Digital IQ Leaders 77%
Everything else 57%
Create better messenger experiences
79% digital IQ heads
Everyone else 64%
Improve business continuity
Digital IQ Leaders 67%
Everyone else 53%
Another way IT leaders can take a step is to move their organizations into a platform strategy, which opens up value creation outside the walls of the enterprise. In the digital world of 2022, more value comes from outside the campaign - from partners - made possible through the right technology structure, Marshall W. Van Alstyne and Geoffrey G. Parker wrote in the Harvard Business Review.
This emerging model, co-authored by the co-authors of an “inverted company,” is built on a platform strategy. That means "providing the tools and the market to help partners grow. In contrast, owners typically use digital transformation to improve the efficiency of the current work. "
How can that be resolved? "Digital investments need to establish the company to engage with consumers, developers, and buyers, at scale, with a focus on value creation, which is the foundation for a strong turnaround."
Van Alstyne and Parker point to a study of 179 companies that validates the effectiveness of this inverted model. The companies that hired Application Programming Interfaces (APIs) to open services to affiliates or external customers grew to "average 38% over 16 years."
“As an interface technology, APIs allow companies to customize their systems to make upgrades and upgrades possible,” Van Alstyne and Parker explain. "APIs are also 'licensing' technology that allows outsiders to access inside facilities carefully. These functions not only allow a company to re-install systems. design quickly in response to problems and opportunities but also allow foreigners to build on top of the company's digital buildings. "
Advances in the digitally-driven 2022s mean IT officers, managers and professionals to take on clear leadership roles within their companies. Their business leaders expect no less.
Based on the results of these studies which highlight the benefits that IT teams can deliver, industry analysts make the following recommendations:
Take the whole initiative far beyond IT
“Technology leaders should actively engage with their peers,” Koehler PwC urges. Introduce "CFOs, supervisors, risk and tax managers. Initiate communication with security and risk managers at the earliest stages so that security, compliance and management are integrated into your cloud transformation, by increase trust with your customers. "
Leverage the network impact
“Among inverted companies, the network impacts that emerge when partners create mutual value are a key source of growth in intangible assets,” Van Alstyne and Parker said. “Enhancing the ability to coordinate value creation and exchange - from user to user, partner to partner, and partner to user - is one a way in which traditional companies transform.It also provides a way to scale.Transforming atoms into pieces improves margins and accessibility.Insulation from the inside to the outside increases ideas and resources. "
Build a new value story as cloud adoption accelerates
"Aligning a cloud commitment with your business stakeholders reflects the business you are in and where you are on your journey," says Koehler. "This requires specific choices about how clouds help to make a difference to the industry - what digital and technological capabilities you develop, the futures problems you solve, and the place your company plays in the industry or ecosystems another. "