Companies Investing Heavily in Digital Strategies

 
 
By Dennis McCafferty  |  Posted 08-07-2014 Email Print this article Print
 
 
 
 
 
 
 
 

Organizations are allocating staggering amounts of money toward digital investments to better reach—and engage—customers, according to a new survey from Tata Consultancy Services. The accompanying report, "The Road to Reimagination: The State and High Stakes of Digital Initiatives," reveals that virtually all organizations are deploying digital platforms in some form. However, it appears that the amount they are willing to invest is separating the "haves" from the "have nots." To elaborate, the Tata report breaks down many results according to companies that are considered "leaders" or "followers" in this space. By giving digital initiatives the short stick, the latter is missing out on revenue-building opportunities, findings show. "The world economy is in the midst of a tectonic shift from the Internet economy to the digital consumer economy," says N. Chandrasekaran, CEO of Tata Consultancy Services. "Five key digital technologies are driving this shift: Big Data and analytics; cloud computing; mobile and pervasive computing; social media; and robotics and artificial intelligence. Individually, these technologies are undoubtedly powerful. But, when combined, they have the potential to fundamentally change how enterprises develop products, market themselves and engage with customers across every major industry." Executives representing more than 800 global corporations participated in the research. For more about the findings, click here.

 
 
 
  • (Nearly) All In

    95% of executives surveyed say their company is using digital platforms to connect with customers.
    (Nearly) All In
  • Market Minded

    59% say their organization has launched a digital product or service, and they expect revenues of $234 million on average as a result.
    Market Minded
  • Well Invested

    70% of companies which consider digital initiatives important are spending an average of $113 million on these efforts.
    Well Invested
  • Digital Divide

    Digital leaders are spending $290 million, while followers are allocating $93 million.
    Digital Divide
  • Results-Based Reporting

    70% of leaders are seeing digital revenue growth, but only 7% of followers are.
    Results-Based Reporting
  • Consumer Focused

    57% of leaders access a single view to see how they connect with customers.
    Consumer Focused
  • Bridge Builders, Part I

    50% say their organization connects through mobile apps for customers' devices.
    Bridge Builders, Part I
  • Bridge Builders, Part II

    34% say their company does so via digital products and services which customers buy and download.
    Bridge Builders, Part II
  • Top Digital Spending Priorities

    Big data and analytics: 28%, Social media and online communities: 20%, Mobile computing and miniature devices: 20%, Cloud computing: 19%, AI, machine learning and robotics: 13%
    Top Digital Spending Priorities
  • Top Industries for Digital Investments

    The top industries are retail, insurance, banking and utilities, which account for one-third of all companies that are overhauling their digital business models.
    Top Industries for Digital Investments
 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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