Report Analyzes Link Between Revenue Growth and Digital Technology Leadership
May 27 2015 - 8:00AM
Business Wire
CIOs and IT Leaders Who Foster a Culture of
Digital Learning and Shared Accountability Generate Greater
Business Outcomes, a Harvard Business Review Analytic Services
Survey Sponsored by Red Hat Shows
In order for organizations to compete and succeed in today's
digital world, leaders across the business - not just those in IT -
must prioritize their understanding of technology trends. The
payoff for educating business leaders on digital trends can be
compelling. Companies that excel in digital leadership were found
to be significantly more likely to have experienced revenue growth
of 10 percent or more over the last two years, according to the
results of a Harvard Business Review Analytic Services survey of
436 global business professionals, commissioned by Red Hat, Inc.
(NYSE:RHT), the world’s leading provider of open source
solutions.
The report, "Driving Digital Transformation: New Skills for
Leaders; New Role for the CIO,” explores whether business leaders
have the digital acumen to transform their organizations for
today's digital economy. The report revealed a gap between the
knowledge and skills needed to drive digital transformation and the
reality within the walls of most organizations. Less than a quarter
(23 percent) of all survey participants are confident their
organizations have the knowledge and skills to succeed in the
digital aspects of their business.
The silver lining comes in the form of what the report calls
Digital Leaders: companies that employees rated highly in both
digital leadership and management. The report showcases that
companies that have a clear vision and strategy for digital
transformation coming from the top, as well as the people,
processes and technology needed to execute against that vision,
were significantly more likely to see tangible business results,
such as revenue growth. While only a fifth of respondents (19
percent) fell into the Digital Leaders category, these employees
were considerably more confident (67 percent) in their company's
ability to succeed in the digital age compared to the average (23
percent).
The survey results reveal an overwhelming eagerness for digital
knowledge among business leaders - especially when it comes to data
- with close to three-quarters (73 percent) rating analytics
extremely important to their area of the business. Only a fifth (20
percent) rate their own analytics knowledge and skills highly.
Nearly half (45 percent) of survey respondents cite the lack of an
appropriate forum the biggest barrier keeping them from learning
about new technology from IT leaders. More than a third (34
percent) say their IT leaders are too busy.
A significant percentage (46 percent) of survey respondents are
looking to their CIO to learn about digital trends. CIOs within
companies that the report calls Digital Leaders were more likely to
be characterized by their colleagues as digital coaches or masters
(45 percent). Further, 60 percent of respondents within Digital
Leader companies - triple the percentage of respondents who rated
their companies low in both digital leadership and management -
believe their CIOs seek to educate and empower line of business
leaders, and 67 percent have IT leaders who understand what is
relevant to each business area. The majority (70 percent) of
respondents within Digital Leader companies also have IT
departments that provide useful knowledge to employees about
technology, compared to only a quarter (25 percent) in companies
lagging behind in digital leadership.
Supporting Quote
Lee Congdon, CIO, Red Hat
“It's clear that the role of the CIO and IT leaders is evolving.
The report demonstrates how imperative open collaboration and
shared accountability are for the entire enterprise. The results
are a call to arms for CIOs to get ahead of the industry shift and
drastically increase transparency between IT and other business
leaders now, before their competitors leave them behind.”
Methodology and Demographics
Harvard Business Review Analytic Services conducted an online
survey on behalf of Red Hat to examine the link between digital
acumen, business transformation, and the role of the CIO. The
survey polled 436 individuals in executive management, senior
management or board-level positions in companies with 500 or more
employees. Forty-seven percent (47 percent) of respondents were
from organizations of 10,000 or more employees, and a third (33
percent) of companies had 2013 revenues of $5 billion or more.
Respondents represented major sectors, including technology,
financial, and manufacturing. Respondents were from North America
(35 percent), Europe (26 percent), and Asia (24 percent). Fifteen
percent (15 percent) were from the rest of the world.
Additional Resources
- See these and additional results of the
Driving Digital Transformation: New skills for leaders; New role
for the CIO study in an infographic
- Download the Harvard Business Review
Analytic Services report
Connect with Red Hat
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About Red Hat, Inc.
Red Hat is the world's leading provider of open source software
solutions, using a community-powered approach to reliable and
high-performing cloud, Linux, middleware, storage and
virtualization technologies. Red Hat also offers award-winning
support, training, and consulting services. As the connective hub
in a global network of enterprises, partners, and open source
communities, Red Hat helps create relevant, innovative technologies
that liberate resources for growth and prepare customers for the
future of IT. Learn more at http://www.redhat.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20150527005500/en/
Red Hat, Inc.Emily Stancil Martinez, +1
919-301-3010emartinez@redhat.com
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