Headline results from our digital leadership survey of European businesses

In the previous Step, we provided you with a list of questions -a checklist of points- to consider when evaluating investment in technology and its impact on performance and innovation. We included the same questions in an online survey of European businesses, to help us evaluate the relationship between technology investment, digital leadership, and business performance over the last three years.

This survey was designed and run by Empirica (Germany) jointly with Henley Business school, Antwerp school of management, IE business school, Aarhus University, New Bulgarian University, European Foundation for Management Development, PIN-SME and CIONET. The survey was sponsored by the European Commission DG Enterprise and Industry.

In this step we share the headline results from this survey. These findings have enabled us to identify the key developments and priorities, when investing in SMACI technologies across industries, company age and economic performance of businesses (e.g. sales, innovation and product development). You may find it helpful to reflect on the results of this survey and think about how investment in digital technologies influences business performance. Do you think companies should be investing more or less in each SMACI technology? Share your views in the comment area below.

Question 1: % of IT budget spent on Internet of Things technology.

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6.8% of IT budget was spent on Internet of Things technology in the ICT sector, whilst 13.82% was spent in the non-ICT sector.

Question 2: % of IT budget spent on external providers of IT services (eg application development, operations and maintenance)

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13.26% of IT budget was spent on external providers of IT services in the IT sector, whilst 43.28% was spent in the non-ICT sector.

Question 3: % of IT budget spent on social media technologies

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5.48% of IT budget was spent on social media in the IT sector, whilst 8.97% was spent in the non-ICT sector.

Question 4: % of IT budget spent on big data

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3.39% of IT budget was spent on big data in the ICT sector, whilst 6.15% was spent in the non-ICT sector.

Question 5: % of IT budget spent on business analytics

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5.50% of IT budget was spent on business analytics in the ICT sector, whilst 5.60% was spent in the non-ICT sector.

Question 6: % of IT budget spent on developing new mobile applications

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6.40% of IT budget was spent on developing new mobile applications in the ICT sector, whilst 8.04% was spent in the non-ICT sector.

Question 7: % of IT budget spent on cloud-based services

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12.95% of IT budget was spent on cloud-based services in the ICT sector, whilst 9.29% was spent in the non-ICT sector.

Question 8: On average, approximate how long products/services last before they are removed or changed significantly (in months)?

Both ICT and non-ICT companies which use technologies, replace ( or update) their products/services with new products on average any every 30 months. We did not find significant differences between the ICT and non-ICT sector.

Question 9: What percentage did your enterprise’s sales changed over the last 2 years?

The variation in the sales rates across the entire sample ranged from a minimum 2% to a maximum 21% over the 2 years.

Question 10: What % of product sales new to your market launched in the last 2 years?

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47.69% of product sales new to market launched in the last 2 years in ICT sector, whilst only 37.89% in the non-ICT sector.

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This article is from the free online course:

Digital Leadership: Creating Value Through Technology

University of Reading