go-Digital Blog on Digital Marketing

‘Digitally Mature’ Companies Significantly Outperform Everyone Else

Source: http://www.businessinsider.com/digitally-mature-companies-outperform-novices-2012-11

A new report released by Capgemeni Consulting based on years of joint research with the MIT Center for Digital Business found that digitally mature companies are, on average, 26 percent more profitable, have a 12 percent higher market capitalization, and get 9 percent more revenue from current assets. The advantage is there in every industry.

‘Digital maturity’ is defined by two things. The first is digital intensity, which means significant and well thought out investment in digital technology and capabilities. The second is transformation management intensity, actually shaping the practices, governance, and future of the company around digital efforts.

The report divides companies into four different quadrants based on their performance on the above. ‘Beginners’ have barely started, usually because they’re unaware of the opportunities, ‘Fashionistas’ adopt the newest or sexiest digital innovations, but without a cohesive strategy or eye to maximizing business value, ‘Digital Conservatives’ have a cohesive vision, but are slow to invest in new technology, and finally, the ‘Digirati,’ who both invest in digital and integrate it with their whole organization.

Capgemeni’s examples of digitally mature companies include Volvo, Burberry, and Nike. They’ve succeeded by making social media and digital tools a fundamental part of the way they do business, instead of just an ongoing experiment.

The 397 global companies researched exist on a huge spe! ctrum. T he Y-axis is digital intensity, and the X-axis is transformation management intensity:

Here’s the profitability breakdown for the four quadrants:

Read the full report here

Tags: capgemeni, cohesive strategy, consulting, current assets, digirati, digital efforts, digital innovations, digital tools, digitally, future, intensity, investment, management intensity, market capitalization, mature companies, maturity, percent, performance, report, Second, technology, transformation management