McKinsey has issued a report outlining the results of global C-level executive survey on readiness/preparedness for digital business.

Three strategic priorities for business are:

1. Big data/analytics – 25% of companies reported this was in the Top 3 corp priorities. A further 26% said it was in the Top 10.
2. Digital marketing (inc. social media) – 25% of companies reported this was in the Top 3 corp priorities. A further 27% said it was in the Top 10.
3. New delivery platforms (cloud, mobile etc.). – 18% of companies reported this was in the Top 3 corp priorities. A further 23% said it was in the Top 10.

These technologies are increasingly seen as offensive strategic weapons rather than defensive moves – almost 30% of companies indicated they were looking to adopt these technologies to build new business opportunities or tap new sources of revenue/profit.

To back this move, 25% of companies reported they would spend 3% or more of their total cost base on digital business initiatives in 2012.

Despite this level of investment, only about 1/3 of companies report they believe they are spending enough to build out these capabilities.

What key challenges do organisations report in embracing and adopting these technologies?

– Organisational structure not designed to take advantage of priorities – 52% of respondents reported this challenge
– Lack of technology infrastructure and IT systems – 51%
– Lack of quality data – 46%
– Lack of internal leadership – 45%
– Difficulty finding functional talent – 43%
– Business processes were insufficiently reworked to take advantage of opportunities – 42%
– Lack of senior management interest or desire to change current practices – 40%
– Difficulty finding technical talent – 31%

For access to the report, see https://www.mckinseyquarterly.com/Business_Technology/BT_Strategy/Minding_your_digital_business_McKinsey_Global_Survey_results_2975