That’s one of the findings of a study done by MIT Sloan researchers from CISR (Center for Information Systems Research) and published in the Spring 2021 edition of the MIT Sloan Management Review. The study was made with almost 17,000 executives of 1,984 large global companies. Among the companies they studied, the average top management team has nine members. Overall, only 17% of individual team members are digitally savvy.
They define being digitally savvy as having an understanding, developed through experience and education, of the impact that emerging technologies have on businesses’ success.
More interesting findings:
According to the study, having a digitally savvy C-level impacts directly in the bottom line. For instance, A digitally savvy CEO together with a digitally savvy CFO who, rather than operating as a gatekeeper, can help identify which digital investments have potential to promote breakthrough performance are associated with a 6.7 pp increase in revenue growth.
In this study, the authors compared the performance of the top 25% digitally savvy management teams with the 25% bottom, and the differences are impressive:
|top 25% digitally savvy management teams||bottom 25% digitally savvy management teams|
|% of revenues from new offerings in the past three years||59%||18%|
|% of revenues from cross-selling||53%||15%|
|Moving from command-and-control to a coach-and-communicate orientation||83%||28%|
|Holding people accountable||85%||41%|
I do believe it is our responsibility as product people and product leaders to help change this. Product people are digitally savvy, with a deep understanding, developed through experience and education, of the impact that emerging technologies have on businesses’ success.
During my period lead the digital transformation at Lopes, the biggest real estate company in Brazil, between 2020 and 2022, one thing that was clear to me is that we had to bridge the gap between business and technology so the company could take the most out of its investment in technology.
To help bridge this gap I created the concept of digital drops and business drops. Every month we had two important moments in the company:
That’s why I’m launching my very first public training, to help product leaders create vision and strategy for their products. Actually, in this training we will do it together. There are very limited spots, so get yours now! With 30% discount!
I’ve been helping companies bridge the gap between business and technology through education, coaching, and advisory services on digital product development and management. Check here how I can help you and your company.
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