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RAPPORT

Digital value or digital vanity?

Zero based mindset

The mad scramble on

Companies across industries are investing wildly in digital. Global spending on digital transformation technologies is projected to reach nearly $1.3 trillion this year, an increase of 17 percent over last year. But are companies investing wisely?

Without insight into the collective business impact, many companies are investing haphazardly in functional or business silos. Business cases are nonexistent or immature. Decisions are not based on hard data. Ties to the strategy are often tenuous. Some companies direct funds to the latest digital trend just because their competitors are doing it, or because they want something to publicize to employees and shareholders. These are desperate volleys for survival, not smart business choices.

It does not have to be this way. Getting maximum return on digital investments starts with measuring digital value. This is linking investments to intended and measurable outcomes tied to the overall strategy. To maximize digital value, companies can zero-base their digitalinvestments. This means starting from a clean sheet to nally understand when, where and how to realize the net bene ts from digital investments. Companies that do this well canbecome part of an elite few—digital high performers that consistently maximize digital value to drive growth and competitiveness over time.

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