About 62 percent of executives agree that organizations must radically transform their operations over the next two years, according EY-Parthenon’s Digital Investment Index.
When making digital investments, M&A, corporate venture capital and partnership investments stood out as successes.
52 percent of executives who pursued digital technologies through M&A say that strategy exceeded expectations, while 45 percent reported similarly for digital partnerships.
The biggest barriers to achieving the full potential of a digital strategy include: lack of skills (65 percent), budget (59 percent) and operating model (45 percent). Market disruption made up a small portion (14 percent).
“Budget constraints in the pandemic economy and transformation fatigue across organizations threaten to turn digital promises into mere buzzwords — unless organizations can prove the value of their investments to the bottom line,” says Peter Ulrich, EY-Parthenon principal, digital strategy and transactions, Ernst & Young LLP.
The survey polled 1,001 global C-level and executive decisionmakers at companies with over $1 billion revenue between September and November 2020.