6 habits of digital transformation leaders

Companies investing more in new technology make more money. Here’s why, and how you can accelerate your digital transformation.

Our latest research finds that companies that excel at digital transformation share six habits. Digital transformation leaders that exhibit these six habits enjoy better financial performance than companies that have yet to adopt them. To catch up, the rest of the pack should learn from the digital transformation leaders who are:

1. Focusing on customers first and foremost
2. Accelerating AI to drive growth
3. Driving innovation through ecosystems and partnerships
4. Nurturing talent with new incentives and strategies
5. Activating governance plans for emerging tech
6. Powering innovation by leveraging data and being agile

Within our study, Tech Horizon: Leadership perspectives on technology and transformation, we looked at three financial metrics to see how these habits payoff: revenue, gross profit and EBITDA. Looking at the five-year compound annual growth rate (CAGR), we found that:

• Leaders are 50% more likely to annually see EBITDA increase by more than 15%.
• Leaders are 45% more likely than laggards to unlock annual revenue growth of more than 10%.
• Leaders are 26% more likely than laggards to enjoy an annual gross profit increase by more than 10%.
• Leaders are 50% more likely than laggards to annually see EBITDA increase by more than 15%.

Being a leader, or forming the six habits, does not guarantee financial success, but we found strong links between these actions and better financial performance. And we’ve identified those causal links to be three new dimensions of value creation in the Transformative Age.

Read more here

Authors:

Jim Little – EY Global Microsoft Alliance Lead and EY Americas Technology Strategy Lead

Savi Thethi – EY Americas Advisory Services Technology Transformation Leader

Contributors – Waqas Jamal