Canadian companies have strong 'Digital IQ' but struggle to develop and implement new strategies: PwC

Survey shows a gap between understanding and addressing concerns

TORONTO, April 30, 2014 /CNW/ - When it comes to technology in business, Canadian companies face a gap between knowing and doing, says a PwC survey released today.

According to PwC's 6^th Annual Digital IQ Survey-- a measure of how organizations understand, value and weave technology throughout their organizations—Canadian businesses recognize the importance of technological acumen in an organization. In fact, respondents identified technological change as the biggest trend they expect to impact their business over the next five years, and more importantly, leadership appears to take these shifts seriously--a significant majority (70%) state that their CEO is an active champion in the use of IT to achieve business strategy.

Data mining, security of major concern

However, on digital and technological issues, companies face a gap between identifying concerns and addressing them. For example, nearly three quarters of respondents (74%) cite data mining, or obtaining and analyzing customer and company information, as a business concern. But, less than half (44%) are putting actions into place. Similarly, while 72% express concern about their ability to protect intellectual property and customer data, just 50% are including this issue in their company strategies.

"Technology is changing at a rapid pace, and with this change comes a need for businesses to adapt their strategies to address new challenges and opportunities," says Ted Salter, Consulting Partner at PwC. "When engaging in planning processes, CEOs should define clear roles, accountability and governance for how their digital strategy is executed."

Businesses should consider external innovation sources

Canadian companies could also stand to bolster their Digital IQ through innovation—particularly by looking towards outside sources.  In PwC's recent Global Innovation Survey, 85% of Canadian respondents see innovation as being at least somewhat important to the success of their organization. However, the Digital IQ survey notes that three in ten respondents indicated that their businesses do not measure innovation, and most are using internal resources to develop new ideas rather than taking advantage of external expertise. Just 14% of Canadian businesses surveyed use universities and labs to gather ideas for applying emerging technologies to solve business problems. This is in stark contrast to their peers in the US and the UK, where these sources are used by 48% and 54% of respondents, respectively.

"Innovation is top-of-mind for many businesses, but most are not making use of the resources available," says Salter. "Companies consider developing an outside-in learning pipeline that shares ideas from outside sources, and from there, develop innovation priorities that reflect the priorities of the business."

Other highlights from the Digital IQ Survey include:

• Critical relationship: A strong relationship between the Chief Information Officer and the Chief Marketing Officer helps companies perform better, says the survey. However, only 42% of Canadian respondents report that their organization's CIO-CMO bond is solid.
• Agility: Just 16% of Canadian businesses surveyed apply agile processes on more than half of their projects, compared to 26% in the UK and 24% in the US.
• Efficient delivery: Canadian businesses often struggle with effectively converting ideas into new capabilities, products and services. Less than half (46%) of respondents indicated that they frequently or always deliver initiatives on time, while only 36% reported the same for delivering within scope and just 28% manage to work within budget.
• IQ=performance: The study has shown that companies which have a high Digital IQ are more than twice as likely to be a top business performer in their industry.

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About PwC Canada
PwC Canada helps organizations and individuals create the value they're looking for. More than 5,700 partners and staff in offices across the country are committed to delivering quality in assurance, tax, consulting and deals services. PwC Canada is a member of the PwC network of firms with more than 184,000 people in 157 countries. Find out more by visiting us at www.pwc.com/ca.

© 2014 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved.

PwC refers to the Canadian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

SOURCE: PwC (PricewaterhouseCoopers)

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