Digital leaders are 50% more likely to see EBITDA increase by more than 15% while there are four key characteristics that separate a digital leader from a laggard, said EY recently when releasing its latest study titled Tech Horizon: Leadership perspectives on technology and transformation .
“Digital firms are also agile and adaptable,” said Steve Bingham, Asia-Pacific Advisory Head of Technology and Asia-Pacific ITA Leader, EY Partner. “The laggards, meanwhile, are now realising the role that digital transformation plays in preparing businesses for the unpredictable.”
The EY study examined three financial metrics – revenue, gross profit, and earnings before interest, tax, depreciation and amortisation (EBITDA) – to see how these four characteristics play out, EY said.
As part of our Tech Horizon study, EY surveyed 570 senior business leaders — a third from Asia-Pacific — to understand the DNA of a digital leader.
The four characteristics of a digital leader are as follows, according to EY.
Obsess about customers
Digital leaders are committed to their customers, with meeting the evolving needs of customers as their top priority, ahead of profitability goals, growing market share, keeping up with competitors and increasing revenue.
Invest in AI and cloud computing
Corporates in Asia Pacific have placed big bets on artificial intelligence and cloud computing, with these technologies receiving the most investment over the last two years.
Focus on innovation
Innovation is the top priority for tech teams, ahead of other considerations like improving security. However, the biggest obstacles to innovation are ingrained: lack of collaboration across departments and a traditional corporate culture.
Plug the skills gaps
In Asia Pacific, 60% of corporates acknowledge that accelerating their digital transformation means addressing the skills gap. Leaders are looking at a host of solutions, from training and incentives to innovation ecosystems.
With or without a global pandemic, a dynamic business leader must learn how to adapt to all business issues with advanced digital capabilities, Bingham advised.