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Ragu Gurumurthy
Jonathan Camhi

Last year’s digital transformation study found that enterprises that apply the pivots broadly and deeply tend to perform better financially.1 Our data this year affirms this finding: Higher-maturity organizations surveyed were far more likely than lower-maturity ones to significantly outperform their industry average on key financial metrics.

The question remains, however: Why is digital maturity associated with better financial performance? In this year’s report, we dig deeper into the factors that could link greater digital maturity with superior financial performance. Our broad conclusion: Digital maturity’s impact on financial performance comes from enabling improvements in efficiency, revenue growth, product/service quality, customer satisfaction, and employee engagement—as well as by prompting a greater focus on growth and innovation. We also found that executives seem to credit some pivots for contributing to these benefits more than others. However, we continue to believe that a balanced approach to investing across all of the pivots is required for attaining higher levels of digital maturity.

Digital maturity levels: What does it mean to be more or less digitally mature?

For our analysis, we considered an organization to be digitally mature to the extent that it experienced a positive business impact from its digital transformation initiatives. For each digital pivot, respondents were asked the degree to which they saw a positive business impact from the application of that pivot within their organization. Responses to this question for each of the seven pivots were aggregated to classify organizations as higher-, medium-, or lower-maturity according to a distribution by the degree of business benefit they said their digital efforts had yielded:

  • Organizations that scored in the top 25 percent of the impact distribution were classified as “higher maturity”
  • Organizations in the middle 54 percent were classified as “medium maturity”
  • Organizations in the bottom 21 percent were classified as “lower maturity”

See the appendix for a fuller description of the survey demographics.

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  1. Ragu Gurumurthy and David Schatsky, Pivoting to digital maturity: Seven capabilities central to digital transformation, Deloitte Insights, March 13, 2019.

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