The majority of businesses may like to think of themselves as digital enterprises, but a new study by PricewaterhouseCoopers claims that only a fifth of them have really made it.

The Annual Digital IQ Survey, which looks at how well organisations understand the value of technology and use it in their business, found only 20 per cent could really be described as digital enterprises.

The global study of chief executives across 68 countries found the majority of chief executives believe technological breakthroughs will have the most impact on their business in the next five years.

European firms were lagging behind their American counterparts when it came to confidence in their digital decision-making ability, with only 63 per cent of European business and IT leaders saying they were confident in their digital acumen, compared with 77 per cent of North Americans.

“Today, all roads lead to digital,” said David McGee, Consulting Partner, PwC Ireland. “From business strategy to execution, digital technology has become the foundation for everything we do. Simply put, you can’t afford to underestimate digital.”

However, despite concern about digital challenges, only a small number of business leaders are addressing the concerns. Although almost three- quarters said they were concerned about not being able to understand and adopt new technology to stay competitive, less than half addressed it in their corporate strategy. Similarly, 70 per cent expressed concern about protecting intellectual property and customer data, but only 48 per cent addressed it.

Sectors
The opinion of industry leaders on their digital IQ also varied according to industry, with the technology sector understandably the strongest, with 87 per cent rating it as strong or very strong, followed by 69 per cent for financial services. At the opposite end of the scale was the retail sector, with 46 per cent.

The survey identified five behaviours in companies that were more likely to be among the top performers in terms of revenue growth and innovation. That list included having a chief executive that believed in the importance of digital to the business and a strong relationship between the chief information officer and the chief marketing office.