Organizations’ digital offerings, by category, %
Next
Back
Next
Back
Digital versions of
formerly analog products and/or services
Existing products
and/or services enhanced
with new features
Entirely new
digital offerings
Source: McKinsey analysis
46
25
29
Organizations’ M&A investments in past 3 years, by type of activity, %
56
20
24
All other respondents
Respondents
at top economic performers
The first move is allocating digital capital. Respondents at top economic performers say that their companies divide this capital equally between digitizing their core businesses and developing new digital businesses. Other companies put more money into digitizing legacy operations.
Organizations’ digital-capital allocation in past 3 years, by objective, %
Developing new digital businesses
Digitizing core
business
50
50
63
37
The second bold move is centering M&A on digital opportunities. According to respondents, top economic performers dedicate most of their M&A investments—63 percent—to acquiring digital businesses and capabilities. By contrast, other companies focus their M&A on nondigital ventures.
Acquire digital capability
Acquire digital
business
Acquire nondigital
business
All other respondents
Respondents
at top economic performers
30
33
36
The top performers’ third bold move is to emphasize innovation when they develop their digital-product portfolios. Respondents at these companies say that new digital offerings account for nearly half of their digital products and services. At other companies, new digital offerings make up less than one-third of the digital menu.
All other respondents
Respondents
at top economic performers
33
39
28
1
2
3
1
2
3
1
2
3