According to a Deloitte survey published today, less than half (45%) of executives are confident in their own digital skills and ability to lead their organisation in the digital economy, while just 16% believe their talent pool has enough knowledge and expertise to deliver their digital strategy.
The lack of confidence comes as 40 per cent of executives say they do not receive the support they need to develop their own digital skills and 54 per cent do not believe their learning and development curriculum supports their digital strategy.
The findings come from the second edition of Deloitte’s Digital Disruption Index, surveying digital leaders from 106 organisations, with a combined market value of £707.8bn, which equates to 27% of the UK quoted equity market.
Confidence in digital skills is currently low, almost half (49%) of executives plan to invest more than £10m in digital technologies and ways of working by 2020 – 35% plan to invest more than £10m in the 2018 alone. But 38% of executives who say their organisation will invest in three or more emerging technologies over the next two years say that they do not have a coherent strategy in place.
“The pace of technological change is accelerating, however in the rush to keep up many organisations are yet to develop a coherent strategy for investing in digital technologies,” said Kent Mackenzie, Global Fintech lead at Deloitte.
“More efforts need to be made to align learning and development alongside strategy and investment. End-to-end digital transformation is not just about advances in technology, but about changing the ways of doing business.”
Leap of faith in AI
The lack of confidence in digital leadership has not stopped organisations from embracing new technologies. Two in five (41%) businesses have invested in AI technology, up from one in five (22%) who said they had in 2017. Overall, 10% have already invested more than £5m in AI, with 15% planning to invest more than £5m in the coming year.
Despite significant investments having already been made in AI, less than one in four (23%) say that their leadership team has a clear understanding of the technology and how it will impact their business.
Overall by 2020, 82% of executives plan to invest in AI, while 70% plan to invest in robotic and cognitive automation and 57% in blockchain.
Mackenzie added: “Investment into AI has seen significant growth since 2017, with some organisations now moving into large-scale adoption. However, many leadership teams currently lack awareness of the technology and this could act as a significant barrier to the adoption and development of the technology. It also suggests a lack of preparedness among senior leadership for how AI will impact their workforce.”
Digital skills gap to be addressed ‘urgently’
Only 12% of leaders believe UK school leavers and graduates have the right digital skills, down from 20% who said the same in 2017. Over three-quarters are experiencing challenges in recruiting employees with the relevant digital skills. Data scientists and analysts remain the most difficult roles to recruit and retain.
While executives continue to worry that not enough school-leavers and graduates have the right mix of digital skills, only 17% believe that UK companies lead the way with digital.
Mackenzie concluded: “There is a digital skills gap that needs to be addressed urgently. Digital is not just about technology. It is about what technology enables. It can fundamentally change how work gets done, how organisations interact with their customers and how decisions are made. To realise the potential of digital technologies and benefit from these, it is vital for businesses to join together in addressing the digital skills gap.”
Related posts
Interviews
Comment
Why innovation and marketing are the perfect partners to make changes that matter
With the rapid evolution of traditional marketing and the appearance of digital marketing, technology and innovation has become part of any marketer’s life without the need of working for a…
Transitioning to a four-day week – CEO’s vow to strike a healthier balance in the workplace
I came to Scotland nearly 20 years ago from Ireland, with no contacts but a lot of determination. While Ireland will always be my home, Scotland has given me amazing…
Women Lead: The female-led company championing intuitive working
Over the last two years, the pandemic forced a shift to more remote and flexible working practices. Whilst we might be seeing a “return to normal”, some companies are choosing…
Women Lead: My passion for young people to consider a career in digital
Twenty years ago, I stumbled across my career in digital marketing almost by accident. It was during my honours degree in marketing at Glasgow Caledonian University. I was on work…
Women Lead: Inclusive Silicon Valley cohort gives hope to entrepreneurs from diverse backgrounds
Things are happening on the Scottish tech scene. Big and small initiatives are creating a fantastic ripple effect on the sector, bottom up and top down, thanks to the recommendations…
Women Lead: The story of an entrepreneurial scientist
I first arrived in Scotland over 20 years ago. I had £75 in my wallet and a scholarship offer to do a PhD at the University of Edinburgh. Sometimes I…
Please mind the gap… or healthcare may fall
Imagine sharing a lengthy train journey with others. From beginning to end, imagine how often you might hear ‘mind the gap’ messages about embarking and disembarking safely. Picture how navigating…
Women Lead: My journey from Dragons’ Den to Silicon Valley
Following her appearance on Dragons’ Den, Sheila Hogan, serial entrepreneur, founder and chief executive of digital legacy vault, Biscuit Tin, shares her experience of her time in the Den and…