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© Boston Consulting Group 2019. All rights reserved. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com. Please direct questions to [email protected]. 45% 20% 23% 43% 35% 34% +16 +11 +9 Digital champions achieve breakthrough performance in three key ways. THREE DIGITAL BOOSTERS Globally, 49% of champions dedicate more than 10% of the digital workforce to AI, but only 13% of laggards do the same. Asian companies have the most people working in AI, and they are further along in AI adoption. CHAMPIONS INVEST IN AI—ASIA IS LEADING Champions plan to invest more in growing their digital workforces and upskilling their employees compared to laggards. CHAMPIONS HAVE A SHARP INVESTMENT FOCUS Investment Asian companies dedicate more digital FTEs to AI Invest in digital talent Champions dedicate 22% of their digital investment to tech/IT, while laggards only invest 16%. This extra investment helps to propel champions ahead of laggards by 49 DAI points. Invest in tech/IT Talent Scale What truly sets champions apart is how they bring their digital strategy to life on an operational level. Here are some next steps that all companies can take. HOW TO BECOME A CHAMPION Note: Data in this infographic comes from a BCG survey of senior executives in 1,817 companies across Asia (including China, Singapore, Malaysia, Japan, and Thailand), Europe (including UK, Germany, France, Sweden, and Italy) and the United States to estimate their digital maturity across 35 dimensions. We examined nine industries: automotive, consumer goods, energy, financial institutions, insurance, manufacturing, public sector, technology, and telecommunications. We assigned the values to responses on a scale from 0 to 100 and weighted them to determine each company’s overall performance on BCG’s Digital Acceleration Index. We ranked companies with a DAI score of 67 points and above as digital champions, while we considered those with a DAI score of 43 and below to be digital laggards. CREATE A DIGITAL- TALENT AGENDA CREATE A DATA CENTRIC ORGANIZATION STRIVE FOR A WORLD-CLASS TECH FUNCTION Make assignment, hiring, and upskilling decisions based on a clear agenda of where digital talent is most needed. Put data at the center of the organization to drive the digital transformation, facilitate new tools, tap new revenue pools, and carve out new competitive positions. Invest disproportionately in a future-ready tech function to enable new technologies and liſt efficiencies. Spending over 5% of OPEX on digital projects, including the creation of new digital business models Companies planning to grow their digital workforce over 20% Companies planning to upskill over 20% of their staff in digital Q: How many digital FTEs are dedicated to AI work? 0–<5% 5–<10% >10% Staffing more than 10% of employees in digital roles and on digital projects DAI increases when the booster is applied % of companies that apply the booster CHAMPIONS LAGGARDS 72% 50% 77% 43% 51% 29% 52% 18% 35% 14% CHAMPIONS ASIA EUROPE US Asian companies are also ahead in AI adoption Q: How much have AI technologies been adopted? Not at all Partly Fully ASIA EUROPE US More than 25% of financial institutions and telecom companies are digital champions. Energy and the public sector trail behind, with more than 40% of companies qualifying as digital laggards. Asia’s financial institutions are the most digitally advanced. FINANCIAL INSTITUTIONS AND TELECOM COMPANIES ARE IN FRONT HOW DIGITAL CHAMPIONS INVEST Across Asia, Europe, and the US, there is a sharp divide in how digital champions and laggards invest, according to BCG’s 2019 Digital Accelerator Index (DAI) survey of 1,800 companies. ASIA EUROPE US DAI 60 55 50 45 TCH MAN CON PUB ENG INS AUT FIN TEL FIN TCH MAN CON PUB ENG TEL INS AUT FIN TEL TCH AUT ENG INS CON MAN PUB DAI is the average DAI score from 0 (lowest) to 100 (highest) per industry in a region 22% 16% % of digital investment in tech/IT DAI score in tech/IT LAGGARDS 78 29 Refining and scaling up pilots into operative solutions to deliver full potential AUT Automotive CON Consumer ENG Energy FIN Financial institutions INS Insurance MAN Manufacturing PUB Public sector TCH Technology TEL Telecommunications

Infographic - How Digital Champions Invest · HOW DIGITAL CHAMPIONS INVEST Across Asia, Europe, and the US, there is a sharp divide in how digital champions and laggards invest, according

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Page 1: Infographic - How Digital Champions Invest · HOW DIGITAL CHAMPIONS INVEST Across Asia, Europe, and the US, there is a sharp divide in how digital champions and laggards invest, according

© Boston Consulting Group 2019. All rights reserved. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com. Please direct questions to [email protected].

45%

20%

23%

43%

35%

34%

+16 +11 +9

Digital champions achieve breakthrough performance in three key ways.THREE DIGITAL BOOSTERS

Globally, 49% of champions dedicate more than 10% of the digital workforce to AI, but only 13% of laggards do the same. Asian companies have the most people working in AI, and they are further along in AI adoption.

CHAMPIONS INVEST IN AI—ASIA IS LEADING

Champions plan to invest more in growing their digital workforces and upskilling their employees compared to laggards.

CHAMPIONS HAVE A SHARP INVESTMENT FOCUS

Investment

Asian companies dedicate more digital FTEs to AI

Invest in digital talent

Champions dedicate 22% of their digital investment to tech/IT, while laggards only invest 16%. This extra investment helps to propel champions ahead of laggards by 49 DAI points.

Invest in tech/IT

Talent Scale

What truly sets champions apart is how they bring their digital strategy to life on an operational level. Here are some next steps that all companies can take.

HOW TO BECOME A CHAMPION

Note: Data in this infographic comes from a BCG survey of senior executives in 1,817 companies across Asia (including China, Singapore, Malaysia, Japan, and Thailand), Europe (including UK, Germany, France, Sweden, and Italy) and the United States to estimate their digital maturity across 35 dimensions.

We examined nine industries: automotive, consumer goods, energy, financial institutions, insurance, manufacturing, public sector, technology, and telecommunications.

We assigned the values to responses on a scale from 0 to 100 and weighted them to determine each company’s overall performance on BCG’s Digital Acceleration Index. We ranked companies with a DAI score of 67 points and above as digital champions, while we considered those with a DAI score of 43 and below to be digital laggards.

CREATE A DIGITAL-TALENT AGENDA

CREATE A DATA CENTRIC

ORGANIZATION

STRIVE FOR A WORLD-CLASS

TECH FUNCTIONMake assignment, hiring, and upskilling decisions based on a clear agenda of where digital

talent is most needed.

Put data at the center of the organization to drive the digital transformation,

facilitate new tools, tap new revenue pools, and carve out new competitive positions.

Invest disproportionately in a future-ready tech function to enable new technologies

and lift efficiencies.

Spending over 5% of OPEX on digital projects, including the

creation of new digital business models

Companies planning to grow their digital workforce over 20%

Companies planning to upskill over 20% of their staff in digital

Q: How many digital FTEs are dedicated to AI work?

0–<5% 5–<10% >10%

Staffing more than 10% of employees in digital roles

and on digital projects

DAI increases when the booster is applied

% of companies that apply the booster

CHAMPIONSLAGGARDS

72%

50%

77%

43%51%

29%

52%

18%35%14%

CHAMPIONS

ASIA

EUROPE

US

Asian companies are also ahead in AI adoptionQ: How much have AI technologies been adopted?

Not at all Partly Fully

ASIA

EUROPE

US

More than 25% of financial institutions and telecom companies are digital champions. Energy and the public sector trail behind, with more than 40% of companies qualifying as digital laggards.

Asia’s financial institutions are the most digitally advanced.

FINANCIAL INSTITUTIONS AND TELECOM COMPANIES ARE IN FRONT

HOW DIGITAL CHAMPIONS INVEST Across Asia, Europe, and the US, there is a sharp divide in how digital champions and laggards invest, according to BCG’s 2019 Digital Accelerator Index (DAI) survey of 1,800 companies.

ASIA

EUROPE

US

DA

I

60

55

50

45

TCHMAN

CON

PUB

ENG

INSAUT

FIN

TEL

FIN

TCH

MAN

CON

PUB

ENG

TEL

INS

AUT FIN

TEL

TCHAUT

ENGINS

CONMAN

PUB

DAI is the average DAI score from 0 (lowest) to 100 (highest) per industry in a region

22%16%% of digital investment in tech/IT

DAI score in tech/IT

LAGGARDS

78

29

Refining and scaling up pilots into operative solutions to

deliver full potential

AUT AutomotiveCON ConsumerENG Energy

FIN Financial institutionsINS Insurance

MAN Manufacturing

PUB Public sectorTCH TechnologyTEL Telecommunications