Growing a multimillion dollar corporation during a recession is no small feat and it’s no accident. Companies that are swimming against the economic tide are doing things differently than those that are treading water, or worse, drowning. So, what exactly separates the best from the rest?

In a world of tech-empowered consumers and employees, companies that are bucking the economic trend exhibit key behaviors that allow them to exploit technology and weave it into their businesses. We call this a company’s Digital IQ.

We surveyed 489 companies across industries with annual revenues of more than $500 million to find out what successful companies are doing that the others aren’t. Following is how the “top performers”—companies that grew by 5% or more last year—are making the grade.

1) Integrate Technology into Strategic Planning

Naturally, creating a strategic plan is the first step in implementing any sort of large-scale corporate effort. However, the effectiveness of the strategy is what counts. 89% of top performers feel confident about their strategy versus 63% of the pack. Top performing companies are also more likely to integrate IT in their strategic planning process. Of the companies that are excelling, 86% said that their CEO is an active champion in the use of information technology to achieve corporate strategy. That number drops to 56% for the remaining respondents. Moreover, the crème of the crop is more likely to have a CIO who not only reports directly to the CEO, but has strong relationships with other C-suite executives. In winning companies, the CIO is seen as a business champion.

2) Set and Share a Single, Multi-year Roadmap for the Overall Business Strategy

In the mobilization stage, executives create a blueprint for breathing life into the strategy. Too many companies bypass this critical step. Not the best companies. 77% of top performers have a single, multi-year roadmap. That number sinks to 54% among average performers. Furthermore, sharing that strategy throughout the company is also critical to success. 76% of top performers say that their strategy is well communicated throughout the company. Only 44% of the rest make that claim. Additionally, 78% of top performing companies say that their business and IT leaders share an understanding of the strategy. Only 49% of the other survey respondents feel that everyone is on the same page.

3) Look Beyond Delivering IT Projects on Time and on Budget

Setting a strategy leads to IT projects that are delivered on time and on budget so it’s no surprise that superior corporations are meeting their goals more often than the others. 67% of top performers say that their initiatives were delivered on time. In stark contrast, only 38% of the rest of respondents hit the mark. Coming in at or below budget proves to be more difficult for both groups, but nonetheless, 54% of top performers did so compared to 35% of the larger group. However, many organizations downplay the trade-offs in cutting scope and therefore potential business value in favor of bringing a project in under cost and time targets.  Almost 100% of top performers say that they frequently or always deliver their planned scope versus only 35% for all surveyed.

4) Invest in Mobile Workforces

Top performers spend more on empowering their workforces with mobile devices than the rest. 44% of the high performers will invest between $250,000 and $1 million and 33% will invest more than $1 million. For the remainder of respondents, those numbers are 37% and 27%, respectively.

5) Interact with Customers Using Mobile Technology

Only 44% of the pack interacts with customers via mobile devices “quite or very significantly.” That number jumps to 66% among the top performers. And, top performers are putting their money with their mouths are: 50% of them plan to invest more than $1million in mobile solutions for customers in 2012. That number plummets to 29% for the rest of the group.

6) Reap the Rewards of Social Media

Both the best and the rest are investing in social media at almost the same rates, but the top performers claim to see more of a benefit from their efforts than their lower-performing counterparts. 41% of top performers say they are benefiting from their investments in social media compared to 24% of the others. To gain a greater edge, 40% of the top performers expect to increase their use of social media. Only 26% of the rest of respondents plan to spend more in this area. In fact, 36% of the top of the heap plan to invest $1 million in social media for internal communications in 2012.

7) Invest in Cloud Computing

Top performers are investing more aggressively in cloud computing than the pack. 52% of top performers will spend more than $1 million on public cloud applications. Only 34% of the remaining survey respondents plan to spend that much. For private cloud investments, the gap is even wider: 58% of top performers will invest more than $1 million, compared with 39% for the rest.

Overall, top-performers link strategy to specific programs and actions while mobilizing the organization around that strategy. Everyone knows what role they should be playing and what success looks like. Top performers also don’t shy away from opportunities to innovate. The role that the CIO plays is to drive superior execution and innovation.

In this post, we didn’t address the roadblocks that stop companies from becoming top performers. What is preventing the rest from being the best?

Image shared by stevendepolo

If you liked this, you might also like:

1. Outside-In IT: A Preview of PwC’s Digital IQ Results
2. 16 Enterprise Architecture Strategies Learned The Hard Way
3. The Ultimate High Performing Teams

My PwC colleagues studying consumer intelligence recently conducted a survey of 3,283 smartphone users to find out how they plan to use their devices in the next couple of years. In many ways, smartphone users will grow increasingly reliant on their devices, but their concerns over privacy, security and convenience will keep them from ditching their desktops all together. “The Speed of Life” dives deep into the data to surface the next wave of trends in smartphone usage and explains how businesses can gain an edge by giving smartphone users what they want. Following are some of the highlights.

Basic Communication to Double

While 98% of smartphone owners already use their devices for voice, texting and email, 46% anticipate that they will increase their usage rates for these basic communication services over the next two years. In fact, 21% expect they will at least double their use of their smartphone for basic communication activities. Accessing the internet, checking email and using social networks will drive this trend.

Consumers to Buy-in to Buying, with a Caveat

Currently, only 12% of users purchase merchandise with their smartphones. However, 45% anticipate they will increase this activity in the next two years, with more than a third of consumers (16%) expecting to at least double the time spent on this activity. However, the research also shows that consumers are concerned about the safety of shopping from their smartphones. They also complain that screens are too small and they clamor for a “virtual wallet” to make the process less cumbersome.

Consumers to Leap into Location-Based Services

Smartphones are moving beyond the ability to simply provide directions. Apps like Yelp!, Fandango and Urbanspoon recommend where to go and what to do. More than half of users–56%–use their devices at least weekly to find locations. Over the next two years, 53% of smartphone consumers believe they will increase their use of location-based services.

Gender, Age and Early Adopter Trends to Change and Remain the Same

In some cases, activities will remain specific to gender. Men will continue to use their smartphones to check news, weather and sports. Meanwhile, women will continue to access social networks. Young adults, 18-24, will upload video and manage their finances. However, baby boomers will jump on the bandwagon of downloading video. And, using mobile video conferencing, connecting to a TV/PC and use of a DVR remote will broaden beyond early adopters.

Users will Continue to Favor Apps Over Browsers

Smartphone users have access to hundreds of thousands of apps. With all this possibility in the palms of their hands, they will continue to choose apps over browsers in 2012 and beyond.

Companies that don’t capture the smartphone market will be at a competitive disadvantage. To effectively take advantage of the smartphone surge, consider the following three things:

1. Make it Easy and Secure

Consumers want to use their phones to make purchases, book travel and manage their finances, but they are concerned about security and privacy and they find the current apps to be cumbersome. Make these activities easy and safe to gain an edge over the competition.

2. Leverage Location-based Services

Location-based information, user recommendations and word-of-mouth are driving consumer behavior. Create strategies that will boost recommendations through “check-ins” and positive customer comments.

3. Integrate Mobile Apps into the Broader Online, Multi-Screen Mix

Multiples screens are becoming the new normal. Make smartphone apps that facilitate seamless transitions between browsers and apps to reduce complexity for customers and increase convenience. With an HTML5 app, companies can have cross platform portability for any supporting browser versus developing for each platform.

Clearly smartphones are here to stay, but how they are used will continue to change over time. The challenge for companies will be to listen to what consumers and employees say they want from their smartphones and align their investments accordingly. What are your predictions for how consumers will use smartphones in the coming year and do you have plans to accommodate them?

Image supplied by philcampbell

If you liked this, you might also like:

1. Mobile Enterprise – Beyond the Fundamentals
2. Will the Mobile User Interface Overtake the Desktop?
3. Will Voice Leapfrog Handwriting Recognition?

Guest post by Phil Garland

I had the opportunity to have lunch with 8 chief financial officers in Denver last week.  Our conversation started with why the CFO should care about IT and what they need to know about technology. Our discussion quickly got to the topic of the roles of the CIO in this changing world of cloud, mobility and social networking.  These enabling technologies have made technology much more accessible to non-IT users which raises the question on the role of the CIO and the IT organization in the future. Several CFOs initially questioned whether there is even a need to involve the CIO in making decisions to leverage cloud and mobile applications given that those services are provided outside the four walls of the enterprise.  However everyone quickly recognized that there is a need to have someone who is technologically savvy  available to advise the CFO and others business leaders on how these emerging technologies can most effectively advance their business.

One CFO described how his CIO has taken on a very active role in partnering with the business units to help drive business innovation.  While the CIO had stayed connected with the business units in the past, the conversations have now shifted from tactical IT needs to a more strategic dialogue.   He described how the CIO has set up regular innovation meetings with a team from each business unit to discuss ways technology can improve their business. Some of our other clients have taken a similar approach using labs to facilitate the business-IT discussions.

In our discussions  there was a realization that the value of the CIO hasn’t been reduced at all – it has just changed.   In fact, the need and value that the CIO can play in advancing the business may now be greater than ever.    The CFOs agreed that they now need the CIOs to play the role of technology consultant or advisor to help them get the greatest value out of their business driven technology decisions.  This provides a need and opportunity for the CIOs to be even more aligned with the business.    While CIOs are still needed and expected to manage IT operations and IT vendors,  there is now a need for the CIO to also play a more strategic role in helping their company drive business innovation.

How does your CFO view the role of the CIO?

If you liked this, you might also like:

1. CIO Guest Blog Series – The CIO’s Journey
2. Will the CIO Lose the C?
3. Business Innovation or IT Innovation?

Only a few years ago corporations issued corporate-sanctioned devices to employees like the army issues uniforms to new recruits. They sourced them, dispensed them and controlled how they were used. They also called the shots in how they communicated with customers. Back in the day, corporations were in charge inside and outside the firewall. That was then and this is now.

Innovation Infiltrating the Enterprise

We’re in a new era, the consumerization of IT–defined as the widespread use of technologies that can be easily provisioned by non-technologists. Employees are pushing a patchwork quilt of devices and operating systems from outside the enterprise in and it’s turning the enterprise inside out. Companies are scrambling to accommodate a potpourri of employee smart phones, tablets and apps while securing their networks.

On the other side of the firewall, corporations are feeling the brunt of the consumerization of IT as well. Customers are carrying the power of social networking in the palms of their hands. They expect to connect with corporations how they want, when they want and from where they want. If they can’t, they’ll use social networks to complain about the lack of conversation and/or take their business to more socially-minded companies.

Getting Out in Front of Tech-Empowered Employees and Customers

To get out in front of tech-empowered employees and customers, business and technology executives must reinvent their roles while rolling out a complex combination of cloud computing, mobility and social networking strategies and tactics. To see how they are faring in their quest to catch up, we surveyed 500 business and technology executives as part of this year’s Digital IQ survey. We found that corporations are taking incremental steps from the inside out to adapt to outside-in IT. Following is a sneak peek at some of the top-level findings and what they mean in relation to the consumerization of IT. (The complete results will be released in January)

Laying the Groundwork with Cloud Computing

Cloud computing makes the consumerization of IT inside and outside the enterprise possible. Whether or not corporations are embracing cloud computing speaks volumes about their willingness to facilitate this new bring-your-own-device (BYOD) environment and to connect with customers across channels. If we can agree that adoption of the cloud is a litmus test, then things are looking up for some corporations.

Among respondents that identify their firms as top performers, 30% are investing in public cloud applications and 87% expect that investment to increase in 2012. We see these numbers as a sign that corporations are laying a foundation for the future with the adoption of cloud computing.

Corporations Make Mobile Advances with Employees, but Not Customers

Business and technology executives are making inroads in mobile with employees, but they still need to meet customers in their mobile worlds. Only 45% of all respondents say they interact with customers significantly using mobile channels and less than one-third are investing in mobile technologies for customers. If companies don’t connect with customers while they are on the go, their customers will be gone.

Corporations Sluggish on Social Media

Social media is not going away, yet only 37% of companies have invested in social media tools to reach customers. Social networks facilitate two-way conversations with customers that can improve and create products and services and deepen and broaden relationships with customers. Social media is a weak point for many corporations, which translates into a missed opportunity.

At its core, the consumerization of IT is about the increased expectations of people for how technology should work in all aspects of their lives–how they do business, communicate with their friends, research and make purchases, etc. To adapt to this new normal, corporations must adopt cloud computing, mobility and social media.

The Digital IQ results reveal that some corporations are willing to change while others are frozen in an industrial IT mindset. I would like to hear from you. Where does your company stand?

Image shared by the San Diego Air & Space Museum Archives

If you liked this, you might also like:

1. 7 Digital Strategies of Top-Performing Companies
2. CIO Guide to Cloud Computing
3. The Private Cloud: Who Will Stop the Rain?

The CIO is in a great position to lead sustainability initiatives at a corporation. Why? Because like information technology, corporations must weave sustainability into the fabric of the enterprise to generate the opportunities that companies like The Dow Chemical Company, SAP and Intel have orchestrated. Their successes are featured in: “Sustainability: Moving from Compliance to Leadership.”

To generate revenue, Dow Chemical created a Sustainability Chemistry Index, which increased its sales of sustainable chemistry products between 2009 and 2010, rising from 3.4 percent to 4.3 percent of all revenue. By 2015, it expects such sales to be 10 percent of revenue.

Intel saved $136 million in 2010 from 11 employee environmental projects. The company includes environmental performance goals throughout its operations, extending to its global value chain. SAP, which established 400 sustainability metrics embedded in its processes, saved $250 million between 2008 and 2010 in energy costs.

“SAP has always tracked financial resources, human resources, and capacities, but the company has never tracked energy, water, wood or any other type of natural resource,” said Peter Graf, Chief Sustainability Officer at SAP in The CIO’s Next Leadership Opportunity: Sustainability. “We never tracked these as there was no perceived need, because it was considered infinitely available. Now we are starting to manage these areas as a scarce resource, which is why applying enterprise resource planning and management is essential.”

The future of sustainability is to embed energy saving practices into business operations. Since technology touches all facets of the business, CIOs are uniquely positioned to lead the charge.  In addition, the CIO can drive the information capture and analytics needed to identify new opportunities.

I see CIOs contributing to sustainability efforts along three dimensions. Some of these activities the CIO controls. Others, he or she will have to collaborate with enterprise or value chain partners. The underlying goal in the following areas is to integrate sustainability practices into operations:

1. Establish Credibility with Green IT–The IT department is the largest consumer of energy, so naturally CIOs should set an example at home before branching out and embedding sustainability throughout the enterprise.
2. Embed Sustainability in the Enterprise–CIOs don’t have to start from scratch to embed sustainability into the enterprise. They can use Enterprise Resource Planning (ERP) systems that already track compliance issues as a basis to broaden their sustainability scope to include cost savings. CIOs can unify information from payables, unity bills, and related systems to paint a comprehensive picture of energy consumption across the enterprise and to create visibility into which facilities are underperforming.
3. Collaborate with the Value Chain– Most organizations are discovering that the majority of their impact on resources is outside of the enterprise. For example, a leading international apparel maker reported that internal operations accounted for 15% of the economic value of its greenhouse gas emissions, whereas its supply chain accounted for 85%. This sort of insight is motivating entire industries to collaborate with their partners and vendors to drive sustainability.

Corporations are moving full steam ahead on sustainability initiatives. Now is the time for CIOs to take the lead on cultivating a company-wide culture where sustainability is a way of life. They have data they can build on, visibility into the entire organization and connections to vendors and partners. Success could mean millions of dollars in revenue and/or savings.

What, if anything, is holding you back from making strides in sustainability?

Image supplied by Aaron Patterson

If you liked this, you might also like:

1. Is the Cloud a Key to Sustainability?
2. One Million Dollars or One Year
3. Demystifying Business Innovation