The EY-Parthenon Digital Investment Index (DII) analyzes how leading companies are investing in digital and outlines key lessons for digital transformation success.
While digital transformation has been a priority for companies in recent years, the Covid-19 pandemic has dramatically amplified the urgency to digitize.
However, despite industry consensus around this strategic imperative, most companies lack a clear digital strategy and have yet to fully leverage technologies like cloud computing and artificial intelligence.
EY-Parthenon and Oxford Economics surveyed 1,001 executives in the third quarter of 2020 to understand digital strategies, technology decision-making, and results from those investments. The EY-Parthenon Digital Investment Index (DII) uses findings from this survey along with data from CB Insights’ tech market intelligence platform to assess how leading companies across industries are investing in digital, which capital allocation strategies drive a return on digital investment, and how organizations can strengthen their digital agenda.
IoT, AI, and cloud are becoming table stakes: Nearly two-thirds of executives surveyed plan to invest more in these technologies in the next two years, underscoring the importance of developing data-centric capabilities to drive improved business performance.
Digital investment drives market returns: Public companies with higher levels of digital CVC, M&A, and patent activity have seen higher share price returns.
Lack of talent is the biggest barrier to digital innovation: While companies are turning to flexible work policies and ramping up their recruiting efforts to close their skills gaps, a lack of talent is the leading reason why more than 90% of companies have yet to fully realize the benefits of digital across their organization.
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