Business News | Global Firms Lack Culture, Organisational Structure to Unlock Digital Growth: Infosys Research

Bengaluru (Karnataka) [India], March 7 (ANI): Only 7 per cent of companies have the correct combination of culture and operating structure to boost growth from digital technologies, according to new research from the Infosys Knowledge Institute, think tank arm of Infosys.

The report -- Digital Radar: The Next Digital Frontier -- surveyed 2,700 business executives across the US, UK, France, Germany, Australia, New Zealand, China, and India, and found that companies that make decisions based on high-quality, transparent data and build a culture of responsible risk-taking are more likely to deliver profitable growth in today's tough macro-economic conditions.

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In addition, organising around products, not process, gets new products to market faster, increasing early-mover advantage, the report stated.

This research suggested three differentiators for success: Use data internally, design organisation culture to take responsible risks and organise the business around products. Companies that excel in these capabilities enjoy increased profit, brand perception, and employee as well as customer engagement.

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However, the report found that less than 10 per cent of firms have mastered these three differentiators, highlighting significant opportunities for those that do.

The report found that only 5 per cent of firms currently implement what it defines as a universal 'live data' approach. This is defined as data that is high-quality, timely, and readily available across the organisation.

According to the report, these data practices drive profit through better innovation and new product speed to market. For instance, companies that follow robust data practices for decision-making improved their new product introduction capability by as much as 85 per cent.

Companies that organise their teams around their product offerings, instead of business functions, are 50 per cent more likely to be top performers in new product introduction and improve both employee and customer engagement significantly.

Yet only half of the respondent companies are currently organised in this way, highlighting a tremendous market opportunity, the report added.

Finally, a company that takes responsibility, considered risks, backed by live data, is more likely to create products faster, retain employees, and increase profit than those that do not. The Infosys report said it identified five culture levers that can improve innovation fivefold -- Flexible leadership style, leadership and employee diversity, data-driven leadership, rapid test-and-learn, and encouraging risk-taking.

Together these findings further highlighted that digital success is contingent on the way a company organises itself around technology, rather than being something that can be delivered by technology alone.

Mohit Joshi, President, Infosys, commented; "We are at a time when businesses and consumers are

facing change, tough macro-economic headwinds, and a challenging competitive environment."

"Leaders must see this period as an opportunity to think differently, unlock new structures and ways of working to drive much-needed innovation and growth. Yet, in practice, very few businesses are accomplishing this," Joshi said, adding, "The opportunity lies in the hands of the C-suite to develop a 21st century enterprise that builds resilience, agility, and growth into their operating models."

Jeff Kavanaugh, Vice-President and Global Head at Infosys Knowledge Institute, said; "The 2023 Digital Radar reveals a new frontier for business. It outlines three areas to spark innovation and bottom-line growth, showing that highly successful firms recognise the relationship between live data, product-centricity and a responsible-risk taking culture. These companies are a step ahead on their digital journey while caring for people and planet."

The think tank said it used an anonymous format to conduct an online survey of 2,700 business executives across industries across the US, UK, France, Germany, Australia, New Zealand, China, and India. To gain additional, qualitative insights, the researchers interviewed subject matter experts and business leaders. Linear regressions were then used to analyse which technologies and business practices correlate with profit and revenue growth. (ANI)

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