In brief
Early technology adopters were more likely to achieve stronger revenue growth and market positions. The study highlights the need to combine technology adoption with cross-departmental collaboration, new processes and business models, and a culture of innovation.
Technology is evolving rapidly, and its impact on businesses is growing. The latest study, “The Digital Dividend: First-Mover Advantage”, shows that the earlier businesses adopt new technology, the stronger their business performance.
The study surveyed 672 business and technology leaders from around the world about the impact of five major technologies, including mobile devices, social media, cloud computing, advanced analytics and M2M (machine-to-machine) communications.
73% of Respondents Use Cloud Computing
The study found that 57% of respondents viewed information technology as an investment that drives innovation and business growth. Respondents reported extensive use of various technologies: 73% said they were using cloud computing, 61% made extensive use of mobile data, 83% were using social media and collaboration tools for business purposes, and 20% were using machine-to-machine communications.
However, adopting technology alone is not enough to achieve substantial growth. Businesses need to become IT “pioneers” to have a chance of standing out. The study divided respondents into three categories according to their readiness to embrace technology: IT “pioneers” (34%), “followers” (35%) and “cautious” adopters (30%).
The results showed that IT “pioneer” companies were more likely to lead their peers in both revenue growth and market position. Among IT “pioneers”, 20% recorded revenue growth of more than 30%, with growth rates more than twice those of “followers” and three times those of “cautious” adopters. “Follower” companies monitor market conditions and invest in new technology only after its effectiveness has been demonstrated. “Cautious” companies wait until new technology has matured before considering adoption, making them cautious technology adopters。
Cross-Departmental Collaboration Plays a Key Role
Cross-departmental collaboration also plays a key role in business operations. According to the report, 25% of respondents said they had been “actively involved”, while 48% described themselves as “somewhat involved”. Among them, 42% were executives, 30% were senior managers and 14% were managers at other levels. Fewer than 10% of respondents worked in IT departments.
The data showed that information technology had become fully integrated into the wider business environment. Businesses that continue to separate IT from their operations, or whose departments work in isolation according to their respective functions, put their business at a serious disadvantage. The research and special projects editor said: “Businesses must work to use technology to build new processes and business models so that new technology can deliver a tangible competitive advantage. Businesses must also be more flexible in how they apply technology and embed a spirit of innovation in their corporate culture to realise genuine business value.