- Financial Services Industry Ranks Highest;
Consumer, including Retail, Ranks Lowest -
- U.S. and U.K. are Most Digitally Sustainable
of 14 Countries Measured – Brazil and Turkey Last -
- Companies that Continually Adapt to Changes
in the Digital Economy Are More Profitable -
Korn Ferry (NYSE:KFY) today announced findings from an in-depth
global study that finds the technology industry is not the most
digitally sustainable of the industries included in the
analysis.
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The study, called “Korn Ferry Digital Sustainability Index,” is
a measure of a business’s ability to adapt effectively and
continuously to keep up with the constant state of flux in the
digital economy.
“Being digitally mature today is not enough: the new economy
demands companies that are built to change, forever iterating,”
said Melissa Swift, Korn Ferry Hay Group Global Digital Solutions
Leader. “Leaders must recognize that with new products, services
and brands entering the market at lightning speed, transformation
is needed not just once, but over and over again.”
As part of the study, researchers analyzed 362 companies in 14
countries and across five industries. The ranking is based on five
core leadership and organizational dimensions of digital
sustainability: Agility, Connectivity, Discipline & Focus,
Openness & Transparency and Empowerment & Alignment.
The Index shows a correlation to profitability. High performers
in the Digital Sustainability Index see a 5.6 percentage point
increase in profit margin (EBITDA) versus the low performers.
Industry rankings on the Korn Ferry Digital Sustainability
Index
Researchers found that the Financial Services Industry ranked
highest in the Digital Sustainability Index among the five
industries in the study.
“Financial companies have, for some time, had the compelling
commercial drive to shift culture, processes and practices –
seeking to protect customer data and market share while meeting new
customer and talent demands,” said Michael Franzino, President,
Korn Ferry Global Financial Services Practice. “Increasing global
investment in fintech and intense competition from fintech hybrids
have also triggered definitive action.”
Surprisingly, the Technology industry did not make the top spot
in the Korn Ferry Digital Sustainability Index, coming in at No.
2.
“The Technology sector is not only made up of the high-growth
‘unicorns’ and disruptors of the world, but also decades-old legacy
tech giants in need of structural, cultural and work process
reform,” said Werner Penk, President, Korn Ferry Global Technology
Practice. “The more traditional firms – once pioneers of the
industry – now need to overhaul their strategies and work processes
to ensure future survival.”
Rounding out the industry rankings for the Index, in order, are:
Life Sciences & Healthcare (No. 3), and Industrials (No. 4).
Consumer companies, including retail, came in last at No. 5.
“Consumer companies are at a crossroads. Many have one foot in
the digital world and one foot in the traditional storefront,” said
Craig Rowley, Korn Ferry Senior Partner, Consumer and Retail.
“Companies have adapted to e-commerce and have reduced time to
delivery, but many are still playing catch up rather than
anticipating what customers will want next. Leaders need to look
way beyond the now and move as quickly as the industry is
evolving.”
Country rankings on the Korn Ferry Digital Sustainability
Index
Based on the dimensions within the Index, researchers found that
the United States ranked highest in Digital Sustainability.
However, experts warn that to keep its top spot, U.S. companies
must look beyond pure-play technology to the human side of
maintaining success. “U.S. organizations must focus on improving
the people aspect of their business operations if they are to
continue as digital sustainability leaders and gain the long-term
financial advantages associated with it,” said Karin Lucas,
President, North America Korn Ferry Hay Group.
The United Kingdom ranked second out of the 14 analyzed nations
for being digitally sustainable.
“The traditional dominance of the U.K. as a digital economy
leader could be under threat from rising global players, unless
steps are taken to invest strategically, build a skilled,
specialized workforce, and develop enviable networks, at home and
abroad,” said Matt Crosby, a Korn Ferry Senior Client Partner based
in London. “Indeed, the government needs to consider increasing
connections beyond its borders now more than ever to drive
partnerships, strengthen trade and share ideas and innovation.”
The three countries that were at the bottom of the list on the
Korn Ferry Digital Sustainability Index were Mexico (No. 12),
Brazil (No. 13) and Turkey (No. 14).
“Clearly there are vast discrepancies in organizations’ capacity
to continuously adapt to the digital economy across industries and
regions,” said Swift. “But even for those companies that rank
highly in the study, continuous improvement in this area is
critical not only for success, but for survival.”
METHODOLOGY
Korn Ferry’s Digital Sustainability Index (DSI) is based on
economic modeling commissioned by Korn Ferry, designed by the Korn
Ferry Institute and Oxford Analytica. This research redefines
transformation in the context of significant and ongoing digital
change, and establishes digital sustainability—an organization’s
ability to continuously adapt and thrive in the digital economy—as
a critical driver of financial success now and in the future.
The study combines proprietary Korn Ferry and publicly available
data to quantify digital sustainability. It benchmarks 362
companies across five industries and 14 countries on the five
dimensions that drive digital sustainability. Each industry and
country is ranked based on its DSI score out of 100—reflecting its
digital sustainability and performance in each dimension.
Industries: Consumer, Financial Services, Life Sciences
& Healthcare, Industrials, Technology
Countries: Australia, Brazil, China, France, Germany,
India, Japan, Mexico, Netherlands, Middle East, Russia, Turkey, UK,
US
Dimensions: Agility, Connectivity, Discipline &
Focus, Empowerment & Alignment, Openness & Transparency
About Korn Ferry
Korn Ferry is the preeminent global people and organizational
advisory firm. We help leaders, organizations, and societies
succeed by releasing the full power and potential of people. Our
more than 7,000 colleagues deliver services through our Executive
Search, Hay Group and Futurestep divisions. Visit kornferry.com for
more information.
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version on businesswire.com: http://www.businesswire.com/news/home/20171012005176/en/
Korn FerryTracy Kurschner,
612-309-3957Tracy.Kurschner@Kornferry.com
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