'Digitally Mature' Companies Significantly Outperform Everyone Else

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 spectrum. The Y-axis is digital intensity, and the X-axis is transformation management intensity:

Capgemeni Consulting

Here's the profitability breakdown for the four quadrants:

Capgemeni Consulting

Read the full report here

Read more: http://www.businessinsider.com/digitally-mature-companies-outperform-novices-2012-11#ixzz2BZlvRXtd

Log into the digital economy: Capgemini Consulting and MIT Digital Transformation global research study

Transform to the Power of Digital

Digital transformation – the use of technology to radically improve performance or reach of enterprises –  is the hot topic for companies across the globe.

Executives in all industries are using digital advances such as analytics, mobility, social media and smart embedded devices – and improving their use of traditional technologies such as ERP – to change customer relationships, internal processes, and value propositions.

Our research, with over 400 companies worldwide, shows how those organizations that have succeeded in delivering a fundamental transformation of their business through digital technologies benefit from a considerable ‘Digital Advantage’ and demonstrate significantly better financial performance than their peers. We also identify common patterns for how leading companies build their digital advantage - a ‘Digital DNA’.

This research is part of a three-year joint research collaboration between Capgemini Consulting and the MIT Center for Digital Business. Our latest report from the second year of study – “The Digital Advantage: How digital leaders outperform their peers in every industry“ – involved 469 senior executive-level interviews in 391 companies in 30 countries.

These companies are all major global businesses, with participants from Europe, the US, Latin America, Asia Pacific, The Middle East and Africa, and across industries including technology, banking, insurance, telecoms, consumer packaged goods, utilities, retail, manufacturing, pharmaceuticals and travel and hospitality.

This latest study follows on from the 2011 report, ‘Digital Transformation: a roadmap for billion-dollar organisations,’ which was ranked among the top 5 thought leadership publications of the last decade by Source – a leading market analyst firm for the consulting industry – following a thorough analysis of some 22,000 consulting reports globally.

 

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Access our Digital Transformation research in the Featured area below. To also view the report in eBook format, click here.