We define a successful organization as one that, according to respondents, has very effectively implemented their initial responses to COVID-19-related changes.ĭigital adoption has taken a quantum leap at both the organizational and industry levelsĭuring the pandemic, consumers have moved dramatically toward online channels, and companies and industries have responded in turn. Respondents from the companies that have executed successful responses to the crisis report a range of technology capabilities that others don’t-most notably, filling gaps for technology talent during the crisis, the use of more advanced technologies, and speed in experimenting and innovating. Our findings suggest that executives are taking note: most respondents recognize technology’s strategic importance as a critical component of the business, not just a source of cost efficiencies. To stay competitive in this new business and economic environment requires new strategies and practices. In fact, when we asked executives about the impact of the crisis on a range of measures, they say that funding for digital initiatives has increased more than anything else-more than increases in costs, the number of people in technology roles, and the number of customers.
What’s more, respondents expect most of these changes to be long lasting and are already making the kinds of investments that all but ensure they will stick. Nearly all respondents say that their companies have stood up at least temporary solutions to meet many of the new demands on them, and much more quickly than they had thought possible before the crisis. The acceleration time frame was calculated from the amount of time it would have taken to reach the current level of digital adoption respondents report if the precrisis pace of change had continued. Based on the average percentage of adoption in each survey, we calculated a trendline to represent the average rate of adoption in 2017, 2018, and just before the crisis, which respondents were asked about in the 2020 survey. We looked at the past results for the degree of digital adoption reported in each of these areas of business operations. And the share of digital or digitally enabled products in their portfolios has accelerated by a shocking seven years. Their companies have accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years.
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The online survey was in the field from July 7 to July 31, 2020, and garnered responses from 899 C-level executives and senior managers representing the full range of regions, industries, company sizes, and functional specialties. According to a new McKinsey Global Survey of executives, 1
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