Beitrag Do 8. Apr 2021, 05:29

Your CEO, And Even Your CIO, May Need Digital Skills Refresh

Your CEO, And Even Your CIO, May Need Digital Skills Refreshes


These days, we take it for granted that most people in major decision-making roles understand the need to step up their digital accelerations. However, even with a “C” in front of their titles, many simply don’t have the skills and know-how to put digital technology to work for their enterprises. Even chief information officers are not as knowledgeable as they should be.

That's the surprising finding from a study​ published in MIT Sloan Management Review, which also finds that companies with digitally savvy executives outperform their less-savvy counterparts in revenues and markets. "Unfortunately, the demand for digital savviness in the upper echelons of leadership has grown far more quickly than the supply," the study's authors, Peter Weill, Stephanie Woerner, and Aman Shah, report. They estimate that only seven percent of the 1,984 large global companies they studied have digitally savvy executive teams.

Significantly, those companies taking the leads in their markets are more likely to have digital talent in their top ranks. Companies with half or more of executives exhibiting digital prowess have 48% higher revenue growth and higher valuations (share price to sales ratio) and 15% higher net margins than the rest, Weill and his co-authors find. “Digitally savvy top teams are pursuing breakthrough performance via innovation, cross-selling, and business transformation. For example, the companies in the top quartile generate a whopping 59% of revenue from innovations introduced within three years - compared with only 18% in the bottom quartile of companies.”

Weill and his co-authors found that slightly fewer than one in four CEOs (23%), and only about one in eight CFOs (12%) are digitally savvy. Technology-oriented leaders fare better, but still are not in the majority: only 47% of CTOs and 45% of CIOs can be considered digitally savvy. “Often, the attention of top technology executives is focused more on IT infrastructure and back-office operations than on the more strategic quest to create business value from digital technologies," the researchers surmise.

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