Do you know your company’s Digital IQ? Technology plays an important role in your organization’s success. Digital IQ measures an organization’s ability to use and profit from these technological solutions. It may refer to the capabilities of the company as a whole, specific departments or individual employees.
As technology continues its rapid advancement, Digital IQ will become even more important to the resilience of a business.
Why Is Digital IQ So Important?
In the age of digital transformation, it feels like most companies are undertaking technology stack improvement initiatives to make them more competitive in the marketplace. Unfortunately, a significant majority of these programs fail to deliver on their stated goals: an increase in revenue and a decrease in operating costs.
In fact, according to a 2016 McKinsey report, up to 70% of those programs aren’t successful. Why don’t these plans succeed more often? According to a survey by PwC, the most often cited reasons are lack of digital skills, outdated technology and inadequate IT integration methods. In other words, insufficient organizational Digital IQ.
Related Article: How to Raise Your Organization’s Digital IQ
What Can Be Done to Increase Your Digital IQ?
Fortunately, you can promote and improve your company’s Digital IQ. Take a look at these tips to get started:
Provide Comprehensive Training
Lack of sufficient training is one of the major drains on an organization’s Digital IQ. Over 75% of leaders surveyed in a PwC report agreed their teams were underskilled, while 54% of workers in a Pew Research survey felt they required continuous training.
These percentages clearly indicate companies may need larger dedicated training teams who promote consistent improvements in curriculum through metric-based analysis and regular feedback. Additionally, encouraging employees to be honest about points of stress helps identify chronic issues that training staff can address and tailor programming around.
Do not be afraid to redesign these training programs as necessary. Consider it a learning experience rather than a failure. Nearly two-thirds of high Digital IQ companies that have achieved successful digital transformations reshaped their training throughout the process.
Related Article: 4 Key Elements of an Impactful Workplace Digital Literacy Program
Align Business and Tech Goals
A 2017 CIO study found only 24% of respondents agreed that everyone in their IT department was clear about how their work relates to business objectives. Since the entire point of digital transformation is to improve business outcomes, this is unacceptable. Ensuring your IT and business objectives align is a major factor in raising your overall Digital IQ.
Create a strong line of communication between IT and senior management. Leaders should share a vision on how to move forward, and IT strategies should be presented to leadership in a way that clearly connects them to the advancement of business priorities. If the links between the two are difficult to see, reevaluate the IT program until it is obviously aligned.
After a roadmap is unveiled, decide which set of metrics you will monitor throughout the process. If these metrics, such as ROI or revenue growth, are not being met on a regular basis, you will have to reevaluate your plan again.
Increase Investment in Technology Solutions
From 2007 to 2017, companies only increased their budgets for emerging technology solutions by 1%. During that same period, the pace of technological advancement far exceeded the investment increase.
In order to increase Digital IQ and achieve more success with digital transformations, organizations have to get serious about investment into digital resources. According to PwC’s 2020 Global Digital IQ research, firms with high digital IQs spend 33% more on digital innovation projects. Greater funding makes it more likely that these companies have a greater overall commitment to the cause. It doesn’t prohibit teams from attempting to implement the changes, and it fosters buy-in from lower management and frontline employees.
When you prioritize Digital IQ, not only with words but with concrete actions, it primes the entire organization for progress.
Related Article: Digital Transformation Success Starts With Raising Your Digital IQ
Digital IQ Requires Dedication
Improving your company’s Digital IQ to achieve successful digital transformation is not a quick or easy process. It takes buy-in from all teams and management. If you follow the guidelines above, you will have a much greater chance of success. Take it seriously, and devote the resources necessary so your company stays competitive in an ever-evolving business landscape.
Sébastien Ricard, currently founder and CEO of LumApps, has been an entrepreneur for over 20 years, creating major companies in business intelligence and cloud. Passionate about technology, he’s one of the cloud pioneers in Europe and the US, as the creator of gPartner (distribution and integration of Google Enterprise in Europe) and LumApps (worldwide editor on the digital workplace market).