Only 7 per cent of companies have the correct combination of culture and operating structure to boost growth from digital technologies, according to new research from the Infosys Knowledge Institute.
The report, based on a survey of 2,700 business executives across the US, the UK, France, Germany, Australia, New Zealand, China and India, found that companies that make decisions based on high-quality, transparent data and build a culture of responsible risk-taking, are more likely to deliver profitable growth in today’s tough macro-economic conditions.
This research suggests three differentiators for success — using data internally, designing organisation culture to take responsible risks, and organising the business around products. Companies that excel in these capabilities enjoy increased profit, brand perception, and employee as well as customer engagement.
However, the report found that less than 10 per cent of firms have mastered these three differentiators, highlighting significant opportunities for those that do.
Mohit Joshi, President, Infosys, said: “We are at a time when businesses and consumers are facing change, tough macro-economic headwinds, and a challenging competitive environment. Leaders must see this period as an opportunity to think differently, and unlock new structures and ways of working to drive much-needed innovation and growth.”
Yet, in practice, very few businesses are accomplishing this. The opportunity lies in the hands of the C-suite to develop a 21st century enterprise that builds resilience, agility, and growth into their operating models, he added.
The report finds that only 5 per cent of firms currently implement what it defines as a universal ‘live data’ approach. This is defined as data that is high-quality, timely, and readily available across the organization.
These data practices drive profit through better innovation and new product speed to market. For instance, companies that follow robust data practices for decision-making improved their new product introduction capability by as much as 85 per cent, the report said.