Results from a recent BCG benchmarking study reveal that despite the allure of digital’s benefits, most companies aren’t prepared to digitize their support functions. Conducted in November 2017, the study used a deep-dive version of BCG’s Digital Acceleration Index (DAI) to assess digital maturity in support functions and shared service organizations of about 900 companies. Participants hailed from enterprises based in 45 countries, across 8 major industries.
Among our study participants, the companies most aggressively driving digital transformation in their support functions—what we call the digital leaders—clearly outperform the others on vital metrics such as revenue growth and profit margin.
Yet just 20% of our respondents are digital leaders in terms of driving and pursuing the digital agenda in support functions—the most advanced stage of digital maturity measured in our study. As much as 80% of them are at a less advanced stage—digital performer, digital literate, or digital passive.
The upshot? A huge percentage of companies have a significant opportunity to supercharge the performance of their support functions and shared services by digitizing them.