True or False? Digitally mature economies are also more digitally sustainability.
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TRUE
FALSE
FALSE
*Together with sector controls, inflation, inflation2 and GDP growth rate. Based on 310 companies (after excluding outliers) where profit margin data was available (out of 362 overall).
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Placing first overall, the US performs strongly across the board, coming first or second in every dimension of digital sustainability and achieving an impressive overall DSI score of 89/100. But while the country tops the global rankings for Discipline & Focus and Connectivity, it receives its lowest score for Empowerment & Alignment indicating that US organizations should be concentrating on cultural shifts to align their workforces and equip them to make decisions.
The UK is a top performer in the Digital Sustainability Index, coming a highly respectable second. But could the category in which it scores lowest, Connectivity (75/100), raise concerns in the context of Brexit and a move to tighter borders? Organizations in the UK would be well served to focus on close working relationships, knowledge-sharing and cross border collaboration to ensure continued digital success. Similarly, a deliberate review of practices around Openness & Transparency, the UK’s lowest ranking dimension, would help to ensure UK based organizations continue to keep up with the constant pace of change.
Dutch firms performed well in the Digital Sustainability Index, leading to an overall country ranking of third place. The country ranked first of all of the countries in Openness & Transparency, showing organizational strength in transparency about ethics, responsibilities, and practices. The Netherlands also placed a strong third for Agility and Empowerment & Alignment but was let down by comparatively weak performance in Connectivity (fourth) and, in particular, Discipline & Focus (fifth). In general though, consistent top five finishes across all the Index’s measures means the country should focus on doing more of the same going forward. Its well-regarded education system and good technical and physical infrastructure should stand it in good stead.
Australian organizations performed well across the board in the Digital Sustainability Index, with strong rankings in Discipline & Focus (second), Openness & Transparency (third) and Agility (fourth). Whilst the country has a less well-connected, innovation ecosystem compared to many countries, it placed fourth of all countries and at the top of Asia Pac by some way. This may, in part, be due to recently introduced government backed digital schemes brought in to drive connections with global players, start-ups, incubators and labs but also an increased focus on hiring from across the globe to develop digital skill sets. Both of these recent moves are likely to help Australia improve its Digital Sustainability Index score even further going forward.
Germany achieved consistent fourth or fifth rankings across every dimension of the Digital Sustainability Index, resulting in a highly respectable fifth place overall and a high score of 74/100. Agility and Connectivity were Germany’s weakest scoring dimensions, suggesting a focus on these areas could further help companies in Germany compete in the digital world. Germany’s top five placement is a key contributor to the overall robust performance of European countries in the index – accounting for four of the top six countries.
France appears to struggle with building networks and collaboration, placing a disappointing tenth in the Connectivity dimension. However, the country is moving to a more digitally sustainable position, with venture capital and private equity firms investing in making the country a true digital hub. This increased digital focus and dynamic has contributed to the country placing highly across the remaining four dimensions and France’s overall position in the top half of the table in sixth place, cementing Europe as an overall leading light.
The Middle East is a tale of two halves, placing a respectable seventh overall but with widely varying performance across the dimensions. The region ranks in high second place for Connectivity and falls as low as eleventh for Empowerment & Alignment. The value of aligned employees to organizations’ digital journeys is far from being fully realized and is an area in need of attention if the Middle East is to rise through the ranks.
Japan achieved a mixed bag of rankings across the five dimensions, leading to a mid-table placing of eighth overall. Placing fifth in Empowerment and Alignment, Japanese organizations prove their strength in aligned workforces who are equipped to make decisions. But it was Japan’s second from bottom placement for Openness & Transparency coming in at thirteenth of the fourteen countries measured and nearly as badly for Discipline & Focus in twelfth place. This suggests that Japan may need to look at adapting their now overly traditional working practices in some of the world’s original and pioneering digital companies to return to being a global digital leader.
Indian companies place ninth out of 14 in the Korn Ferry Digital Sustainability Index, with below average performance in four of the five dimensions of digital sustainability, suggesting there are a number of areas requiring urgent attention.
While India is the poster child of a mobile-first population, its digital infrastructure, connected business practices, skills support, empowerment and focus on digital working strategy has not caught up – demonstrated by poor rankings in Agility (twelfth), Connectivity (ninth), Empowerment & Alignment (ninth) and Discipline & Focus (ninth).
Russia is tenth out of 14 countries ranked in the Korn Ferry Digital Sustainability Index. Poor performance in Agility (thirteenth), Discipline & Focus (eleventh) and Openness & Transparency (tenth) are holding the nation’s companies back from a sustainable digital future. Hierarchical structures, combined with slow and formal decision-making processes are contributing factors to a low score in Agility. Whilst a poor ranking in Discipline & Focus, suggests leaders should focus on defining exactly what digital means for them and learn from forward-looking Russian companies who make digitalization a part of their agenda.
China’s eleventh place overall rank may come as a surprise, but represents a warning that conditions which have led to digital success in the past may not necessarily be a predictor for future success. Chinese firms place last when it comes to Openness & Transparency. This, together with low rankings for Connectivity (twelfth), Empowerment & Alignment (tenth) and Agility (tenth), contribute to China’s overall placing in the Index. Strong digital infrastructure and maturity do not add up to digital sustainability, without the supporting culture, people and structures to unleash the ability to transform again and again.
Despite the Digital Sustainability Index leader, the US, being its biggest trading partner, Mexico struggles with digital sustainability, scoring less than a third as many points as its neighbour and placing twelfth overall. Its bottom placement in the Agility dimension suggests the country’s hierarchical corporate cultures are stalling collaboration or sharing of ideas and preventing a move towards a more digitally sustainable way of doing business.
Brazil has a way to go to prepare itself for success in a digital future, placing second from last of the 14 countries included in the Digital Sustainability Index. Action is required across all five dimensions of digital sustainability meaning the pace of change and innovation must speed up if businesses are to keep up with the rest of the world. Brazil does, however, have pockets of excellence that other organizations can learn from. The Financial Services industry, for instance, with the top five banks – most of which are still Brazilian-owned – experiencing on-going strong results.
Turkey places last overall of the 14 countries included in the Digital Sustainability Index, as well as in three of the dimensions required for digital sustainability. A glimmer of hope comes from its eighth place ranking for Agility, suggesting the potential to adapt to market and environmental changes, and timely decision-making and execution. Organizations must focus on putting the right strategies in place to reach maturity, as well as overcome regulation and macroeconomic issues.