Irish firms below global average for digital spend - PwC
Irish companies are more reluctant to invest in digital technology than their international counterparts, a new study has found.
According to the research, just one in ten companies is spending more than 15pc of revenue on digital, significantly behind the global average of about one in three companies.
The finding is contained in PwC's seventh annual Global Digital IQ Survey, which included Ireland for the first time.
The survey assesses the ability of organisations to use digital technology to drive business value. It polled 2,000 executives across 51 countries.
The study identifies ten critical behaviours that are related to revenue growth and profit margin.
The top performers with the highest scores across the ten behaviours were found to be 50pc more likely to achieve rapid revenue growth and are twice as likely to achieve rapid profit growth when compared to the remaining respondents.
Overall it put Ireland's "Digital IQ score" at 75.8, slightly behind the international average of 77.2.
Although Ireland ranked just below the average, it was found that Irish companies lag behind global front runners in almost all of the ten company behaviours assessed.
And the survey found that less than half of Irish firms have a dedicated team for digital innovation compared to 65pc for their global counterparts.
Only one-third of Irish companies said that they effectively use all of the data they capture to drive business value compared to 58pc globally.
However, the country scores well for chief executives who champion digital technology in their business (73pc compared to 74pc globally) and for proactive cybersecurity.
Speaking about the Irish results, PwC Ireland technology consulting partner David McGee said that although many Irish business leaders understand the value of digital, "there is some catching up to do in terms of investing in digital to be on the same playing field as global front runners".
He added: "Key areas for improvement include increasing executive team engagement, making more effective use of business data and consistently measuring outcomes.
"More investment is needed by companies in Ireland to realise the full potential of digital," Mr McGee said.