Reading marketing blogs (other than Lairig Marketing, of course) would lead a person to think every communications process and means of distribution had been fully digitized. The recent “Minding Your Digital Business” report from McKinsey will bring such people back to reality.
One of the many questions for McKinsey’s study group of nearly 1500 global “C-level” execs was how big a priority “Big Data” is (a faux phenomenon we covered in depth here). Only 25% put it in the top three (which sounds to us to be twice what you’d expect).
That means we’ll see another million “Big Data” articles over the next two years until the C-suite gets the memo.
Oddly, only 39% said they were using Big Data for “Budgeting, Forecasting & Planning.” More oddly, budgeting was the only one of nine survey options that showed a lower number for ideal usage. Translation: execs believe they are currently using TOO MUCH data for setting budgets!!!
Metaphorically, we presume, a finger in the wind counts as “digital.”
Half of the execs said they would be investing less than 2% of their company‘s total COST base on digital initiatives. (Perhaps the percentage spent would be higher if they used Big Data for budgeting, but we digress). A mere 25% will spend more than 3%.
Yet, unbelievably, a full 35% expect they will realize better than 10% improvement in operating income as a direct result of their digital programs. That’s an ROI of more than 300%, folks.
When McKinsey asked what the biggest hurdles to digital success are, for the millionth time in a row 50% of the surveyed execs said “lack of quality data” and “poor IT infrastructure and systems.” Still and forever, stuck in the proverbial digital first gear.