Based on an in-depth diagnostic survey of 150 companies around the world and evaluation of 18 practices related to digital strategy, capabilities, and culture, McKinsey has developed a single, simple metric for the digital maturity of a company, which the authors of a study refer to as Digital Quotient. The findings show a wide variance in the digital quotient of firms:
The authors offer the following directions for improving the digital quotient:
1) Firms should think carefully about the strategic options. The authors state that, "The number of companies that can operate as pure-play disrupters at global scale—such as Spotify, Square, and Uber—are few in number. Rarer still are the ecosystem shapers that set de facto standards and gain command of the universal control points created by hyperscaling digital platforms. Ninety-five to 99 percent of incumbent companies must choose a different path, not by “doing digital” on the margin of their established businesses but by wholeheartedly committing themselves to a clear strategy."
2) Firms should invest in relevant digital capabilities that are well aligned with strategy—and to do so at scale. It helps in keeping pace with customer expectations.
3) In addition to technical capabilities such as big data analytics, digital content management, and search engine optimization, a strong and adaptive culture is important.
4) Firms should align organizational structures, talent development, funding mechanisms, and key performance indicators (KPIs) with their digital strategy.
Source: Tanguy Catlin, Jay Scanlan, and Paul Willmott, 2015. Raising your digital quotient. McKinsey Quarterly, August 2015.