McKinsey: 2/3 of Companies Betting Heavily on Digital Business to Drive Revenue Growth

30 May

A new study by McKinsey & Company on “Minding your Digital Business” examines the rapid growth in corporate investment on Big Data & Analytics, Digital Marketing & Social Tools, and Flexible Delivery Programs and the sky-high revenue expectations that businesses are attributing to these new digital business strategies.

 The fact that McKinsey completed the study as a “Digital Business” report and not an analysis on analytics, sales, or marketing is a reflection that increasingly every business is a digital business. According to the study, 68% of companies rate “Digital Marketing & Social Tools” as a top corporate priority, 65% rate “Big Data & Analytics” a top investment priority, and 56% says the same for “Flexible Delivery Programs.”

The expected impact of these digital business strategies is sky high: 66% of companies expect a positive impact on operating income over the next 3-years. Of this group, 35% expect an increase of 10% or more.

For companies, data and analytics will likely be the biggest driver of business impact. As digital interactions with customers generate unprecedented reams of data, companies are organizing to turn insights into revenues.

Practically speaking, this is easier said than done. Companies report that organizational structure, IT infrastructure, a lack of quality data, and internal leadership gaps limit their ability to achieve their digital business objectives.

See the full study here.

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