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Digital Transformation B2B Marketing Digital

Only 2% of the world's largest businesses have digitally-focused leaders in the C-suite

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By Laurie Fullerton, Freelance Writer

October 31, 2016 | 2 min read

Only 2% of FTSE companies - some of the largest in the world - have a chief digital officer (CDO) while just 5% of CDOs are among their company's top leadership team, according to new analysis which suggests that many firms are not addressing digital transformation as seriously as they should.

PeopleTECH
PeopleTECH

“The sheer impact and importance of digital cannot be under-estimated. I think that a large number of companies confuse IT and digital, and in 2016 still aren’t focused enough at a board level on digital transformation," said managing director Mike Hughes of PeopleTECH, the customer management consultancy firm who conducted the survey.

While digital transformation is a highly complex process, younger companies have more tech savvy individuals on board throughout organisations, but not at the senior level.

“If a company has digital embedded in its DNA, then there is less need for a CDO, and that’s certainly the case for many of the firms on the FTSE AIM 100," Hughes said. "Not having a chief digital officer in a senior role does not necessarily mean that organisation is not focused on digital transformation, but it can be no coincidence that organisations said to be ahead of the game with digital transformation, generally have a senior digital executive to bring it all together."

The PeopleTECH audit also took in the FTSE AIM 100, which comprises younger and more high-growth companies. Perhaps surprisingly, not a single firm had a chief digital officer on the board. Just 2% had a chief digital officer on the senior management team or executive committee, while another 2% had people with digital prominent in their job description listed elsewhere on their website.

“There is no blueprint for universal success in digital transformation," Hughes said. "But it stands to reason that without someone to work with the rest of the board, defining and delivering a digital vision for the company, and integrating it across the entire organisation, it is hard to imagine many firms being successful.”

The Drum's Digital Census, which audits the health of the digital marketing sector will be released later this month to relay the success of digital agencies over the last 12 months.

Digital Transformation B2B Marketing Digital

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