Only 16% of companies are well prepared for the digital economy

While there are many benefits to being digital winners (defined as companies with executives who are better prepared for the digital economy), Leaders 2020, a new study conducted by Oxford Economics and sponsored by SAP found that most companies are stuck in the past.

Surveying more than 2,050 executives and 2,050 non-executive employees in 21 countries, the study found that while digital winners were spread fairly evenly across industries, regions, and functions, only 16% of the companies qualified as a digital winners.

Employees from digital winners were found to be more satisfied (87%) compared to those from other companies (63%) and more likely to stay in their jobs if given the chance to leave (75% employees from digital winners vs. 54% employees from other companies).

With 93% of very satisfied employees routinely going well beyond the minimum requirements of their job, compared to 39% of dissatisfied workers, digital winners were also 38% more likely than others to report strong revenue and profit growth (76% vs. 55%).

These companies were also found to have more mature strategies and programmes for hiring skilled talent (85% vs. 64%), building diversity (56%, vs. 48%), and succession planning (72% vs. 50%).

ALSO READ: Singaporeans love using mobile technology for work

Sadly, apart from the low percentage of companies qualifying as a digital winners, only 60% of companies surveyed have programmes in place to ensure they were developing a digital workforce.

When it comes to developing a digital workforce, both executives and employees see room for improvement. The study found that only 36% of executives and 31% of employees felt that mid-managers were proficient at using technology for competitive advantage.

Unsurprisingly, it's the Millennials who were the least satisfied with their organisation's digital capabilities. Only 37% of Millennials thought that their senior management is proficient in using technology for competitive advantage 37% compared to 60% of non-Millennials. This generation were also less likely to think that decisions were mapped to company strategies most or all of the time (38% vs 59%).

The study revealed that Millennials also didn't think very highly of their organisation's ability to manage a diverse workforce or develop the next generation of leaders.

Only 39% of Millennials thought their senior management is proficient in managing a diverse workforce compared to 54% of the other generations, and only 38% of Millennials felt their organisation devotes resources to training the next generation of leaders compared to 48% of non-Millennials.

Millennial executives were also less confident in their company’s ability to recruit skilled workers (54%, vs. 70%), develop talent for the digital workplace (52% vs. 65%), and plan for succession (39% vs. 56%).

READ MORE: The future of HR technology in Asia1 in 3 employees say their home has better technology than their office

Additionally, the study highlights the necessity of understanding diversity as a business issue.

Digital winners were also more likely to recognise the positive impacts of diversity on culture (66% vs. 47%) and financial performance (37% vs. 29%). They were also found to have a higher proportion of female employees than other companies.

Lead photo / 123RF