digital-competitiveness

Endangering competitiveness through lack of digital literacy

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The Information Systems Departments (DSI) deplore a lack of digital culture in the Management Committees and are concerned about the consequences on the competitiveness of their company.

The Directors of Information Systems (DSI) of major French companies stress that mastery of digital technologies is and will be essential to improve their competitiveness and ensure their sustainability, in a context of economic tension.

According to the results of a survey commissioned by CA Technologies (and conducted by the independent firm Vanson Bourne) (1), Management committees must quickly become aware of the real value offered by digital technologies, at the risk of undermining the development of their organization. This survey, carried out among 685 CIOs worldwide, reveals a glaring lack of understanding of the stakes and value of digital technology by company management committees: according to 90% of French CIOs (and 80% of CIOs worldwide), this lack of understanding on the part of senior executives can jeopardize the competitiveness of their companies. In short, if companies do not invest in digital now, they run the risk of missing the growth train.

CIOs are concerned that this lack of interest may be the cause of a lack of responsiveness of their company to constant market developments; the inability of the company to make the most of commercial and investment opportunities; a lack of competitiveness and slow time-to-market. According to nearly one-third of the CIOs surveyed (28% in Western Europe, 36% in Asia-Pacific and 30% in North America), management committees do not understand the impact of emerging technologies and have a poor grasp of their value in terms of their company's competitiveness. And for only 20% of CIOs, the Management Committee is fully aware of the opportunities offered by digital technologies and their impact (21% in Western Europe, 33% in Asia-Pacific and 18% in North America). Moreover, according to 30% of the ISD (35% in Western Europe, 26% in Asia-Pacific and 23% in North America), the Management Committee's perception of IT is only a mandatory expenditure item, and not a means of developing the company's activities, improving its processes and increasing its agility and therefore its competitiveness.

At the forefront of innovation, CIOs are perfectly positioned to identify new technological trends that bring real value to the business - Big Data, Cloud Computing, Mobility, Social Networks, etc. - and to help them identify the best solutions for the future. However, 55% of CIOs never participate in the strategic decision-making process of companies, which is enormous in view of the challenges posed by these new levers of competitiveness. With more than 60% of CIOs participating in these decision-making processes, Norway and Israel have the highest rates in the survey, followed by Germany (57%). With only 30%, France is at the bottom of the pack, along with China and Portugal (27%).

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"The results of this survey highlight the lack of technological culture of French decision-makers: for example, only 3% have implemented Cloud services today. They must not only be aware of the value of emerging technologies to increase their company's competitiveness, but also understand how to implement them and integrate them with the rest of the information system," said Jean-François Pruvot, Managing Director of CA Technologies, France. "With this in mind, it is essential to involve CIOs in the strategic discussions of the Board of Directors, as they are in the best position to define the digital development axes, a source of future growth, and to demonstrate how a digital strategy or project can create value".

In the current economic context, it is increasingly difficult to predict the future and develop growth strategies, as Nassim N explained. Taleb in "The Black Swan: the power of the unpredictable". (2). Moreover, with the increase in competition due to the globalisation of trade, some analysts such as Nicholas Carr no longer hesitate to refer to the "trivialisation" of IT and its inability to provide a solid competitive advantage. However, other analysts have proven that technological innovation enables new business models to be created every day, which become the main source of competitive advantage3 and value creation4 for pioneering companies.

"In constant contact with CIOs around the world, we make sure they have the tools to effectively demonstrate the real value created by digital technologies for the company as a whole," continues Jean-François Pruvot. "A new trend is emerging today: CIOs are more and more involved with business departments and are increasingly able to explain the value and contribution of technologies. They are much more in line with their company's growth strategy than they were 10 or 20 years ago. In our opinion, they are the best equipped to provide in-depth pedagogical work to management committees in order to prove the real relationship between investment in digital technologies and economic growth.

To obtain the full report dedicated to this survey please contact us at this address: ca-rp@rumeurpublique.fr

(1) "Digital Literacy among Senior Executives", (study commissioned by CA Technologies and conducted by independent research firm Vanson Bourne, August 2012).

(2) The Black Swan: The Impact of the Highly Improbable (Random House Publishing)

(3)  http://business-analytics-info.fr/archives/3099/de-la-maturite-des-entreprises-vis-a-vis-des-big-data/

(4)  Harvard Business Review 

Survey methodology

CA Technologies commissioned the independent research firm Vanson Bourne to conduct a survey of 685 Information Systems Directors from large companies operating in various sectors (telecoms, finance, manufacturing, distribution, etc.). - and located throughout the world (United Kingdom, France, Germany, Italy, Spain, Benelux, Austria/Switzerland, Scandinavia, Portugal, Israel, Australia, China, Hong Kong, India, Malaysia, Singapore, Korea, Taiwan, Thailand, United States and Canada).

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About CA Technologies

CA Technologies (NASDAQ: CA) provides IT management solutions that help customers manage and secure their complex IT environments to support their agile business services. Organizations rely on CA Technologies' software and SaaS solutions to accelerate innovation, transform their infrastructure and secure data and identities from the data center core to the cloud. For more information, visit the website: www.ca.com/fr

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