HELLO TOMORROW. FROM TRANSFORMING TO TRANSCENDING - CARIBBEAN DIGITAL READINESS SURVEY 2021 - PWC
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pwc.com/cb Caribbean Digital Readiness Survey 2021 Hello tomorrow. From transforming to transcending
2 | Caribbean Digital Readiness Survey 2021 From boosting workforce productivity to improving customer experience, accelerating digital transformation is What marks out the now competitively critical for businesses here in the Caribbean region. But PwC’s first Caribbean region digital transcenders? How can you become one readiness survey reveals a wide gap between organisations out in front and those struggling to make headway. What marks out the digital transcenders - not just transformers? How can you win in digital and become one of these of these pace-setters? pace-setters? Our survey benchmarks where organisations in the Caribbean are on their digital journey across six key themes.
3 | Caribbean Digital Readiness Survey 2021 Snapshot Caribbean businesses set bold Digitisation is accelerating, but Productivity boosted digital ambitions ground still to be made up Almost three-quarters of respondents believe that More than 80% of businesses in our survey are Most respondents believe that they’re meeting or use of digital technologies and behaviours has focusing their digital strategy on modernising exceeding targets on integrating new technologies boosted workforce productivity. Over half believe their brand with new capabilities, ahead of into business processes, and products and it has increased employee satisfaction. doing what they’ve always done faster and more services – 42% on target and 28% ahead. But efficiently (62%). that leaves more than a quarter who acknowledge 73% that they are behind target. Moreover, only 15% say productivity Modernising believe that their digital fitness is on a par with is up 80% with new capabilities or ahead of the leaders in their industry. Pulled in too many directions 57% say employee There are now an infinite variety of digital satisfaction is up tools and technologies on offer. The challenges of making and Further upskilling implementing the right choice are exacerbated is critical by the need to get on Switch to remote working Digital transformation is as much with business as usual. becomes permanent about people as systems – you can’t Respondents see The shift to remote working caused by COVID-19 create a digital organisation if your competing priorities is here to stay. Over half of respondents expect workforce is still stuck in analogue. as the biggest barrier at least a third of their employees to be But 46% believe their organisation to creating effective working remotely more than one day a week a is behind in training workers with customer and employee year from now. Alongside the right technology, skills for the digital era. experience. this shift demands new ways of engaging with and managing your workforce.
4 | Caribbean Digital Readiness Survey 2021 Welcome to Hello, tomorrow. From Clearly digital transformation is a journey and most Caribbean Digital IQ respondents (66%) only began in the past three transforming to transcending, our years. But 2020’s shift to remote working and step first Caribbean-focused digital up in digital customer engagement have ratcheted readiness survey. up the pressure to accelerate progress. The big questions we explore include how far Scale: 0 (weak) When asked about the risks of failing to transform businesses in the Caribbean have come in their to 100 (strong) into a digital organisation, more than three- digital journey, how can they accelerate progress, quarters of respondents believe that their revenue Frazer Lindsay growth and/or profitability would suffer (78%). and what can they learn from the front-runners – CEO, PwC in the Caribbean the ‘transcenders’. More than half are concerned that customer satisfaction would decline (58%) or that they The findings make fascinating reading. They reveal Building on PwC’s Global Digital IQ framework, wouldn’t be able to compete with others in the the high level of ambition for digital transformation this is the first regional study to gauge progress industry (52%). in our region. They also highlight barriers to on developing digital capabilities. Digital IQ change, and our insights on how they can be measures how well an organisation understands However, if your business is able to get ahead of overcome. and captures the value of digital investments in the pack, the game-changing potential includes terms of tools, business processes, and culture more informed data-driven decisions, a more As both the survey results and our experience (0=weak and 100=strong). The average IQ for compelling employee and customer experience, here at PwC underline, moving forward is as much the companies in our survey is 63. But there is a and more tailored and targeted products and about people as systems. That’s why a significant wide gulf in scores (22 to 91). And when asked to services. proportion of our own investment in digital centres identify and compare themselves to the leaders in Zia Paton Digital Leader on upskilling. Our commitment is demonstrated their industries, only 15% of respondents rate their by the fact that our region is a leader in our global digital readiness as being on a par with, or ahead network on digital training and technologies. of, those leaders.
5 | Caribbean Digital Readiness Survey 2021 Foundations for success What then does 1 Clear definition of digital that recognises that success is our survey reveal as much about an innovative mindset and workforce about the key capabilities as systems alone What it takes to make digital transformation succeed: foundations for Digitally savvy leaders who 2 lead from the front rather than delegating and are prepared “A complete shift in the success: to take risks in support of transformation mindset…and a genuine commitment to digital Progress on developing and 3 applying digital skills – not just transformation.” among a few specialists or Survey respondent creatives, but the workforce as a whole Timely, relevant, and consistent 4 data to drive effective decision making, innovation and differentiation
6 | Caribbean Digital Readiness Survey 2021 Solutions to your challenges No time for digital? Digital transformation can seem like a second order priority, even a distraction, when your business and its workforce are just trying to keep afloat. Staff may also be resistant to change, seeing digital transformation as a threat to their jobs. Solution That’s why it’s so critical to make digital relevant to your workforce. Demonstrate the benefits in areas such as new business won and improved customer satisfaction. Give them the time and license to apply new skills in their day-to-day work. This is an opportunity to work smarter not harder and to create new and fulfilling tech-enabled employment. There are also opportunities to create the transferable skills needed in an unpredictable and fast-changing world, such as creativity, leadership and problem solving. We know from the shift to remote working that employees will get behind change when they see a clear rationale.
7 | Caribbean Digital Readiness Survey 2021 The data isn’t there “Employees have You’ve invested in new systems, to buy into [digital but can’t get the data to run on them or it’s in the wrong format. transformation] as change is sometimes difficult to implement Solution and sustain.” The data is often there. But you may need to reach out to business teams to unearth it, Survey respondent underlining the importance of organisation-wide buy-in and involvement. There is also a lot of external and unstructured data that can be mined from sources such as social media or bought in from third parties.
8 | Caribbean Digital Readiness Survey 2021 “We need to be aware We’re overwhelmed of where it makes sense Transformation is inevitably daunting. Where do you begin? to go digital and where What do you prioritise? it doesn’t. At this stage and for the foreseeable Solution future, much of our core It’s important to make change manageable. That means setting an overall vision, while rolling business cannot be cost effectively automated.” out investment, implementation, and workforce training in iterative steps. It’s also important to fail fast, and learn fast as you look to build the agility and resilience needed to deal with constant Survey respondent change.
9 | Caribbean Digital Readiness Survey 2021 Transcenders: Mandate change 1 Mandate a leadership strategy Taking transformation focused on collaboration and cross-functional work. Digital should be your corporate strategy, to the next level not just a sideshow. Invest like you mean it “Forward thinking 2 Here at PwC, we’ve studied digitally transforming companies for many years Understand the technology, management and through our Global Digital IQ research. processes, operating models, and What emerges is a winning 5% who are leading the way in every area we assess ways of working that you need senior leadership who to succeed in the future. Invest – from growth and profits to innovation, customer experience and more. We call accordingly. are all bought-in and them transcenders. They’re marked out Empower your people will fully support the 3 by four key attributes: Tap into the creative brain power of all your employees. Upskill them transformation initiatives and upgrade your training. Foster and help to implement a mindset that revolves around employee experience. real change.” Survey respondent Build up resilience 4 The new normal is constant change. Build a resilient culture and learn to regroup, readjust, and tackle change head-on.
10 | Caribbean Digital Readiness Survey 2021 About this survey 79% In October/November 2020, we surveyed over The questions sought to gauge organisations’ digital readiness, enablers 600 senior executives from organisations in and barriers to change, and priorities for the future. Our thanks to our 92 seven countries in the Caribbean. respondents for kindly sharing their time and insights. Government & public services have USD$2m+ Other 3% 3% 8% Bermuda in revenue. Aerospace, defence & security 4% Technology 6% Capital projects & infrastructure 15% Media Telecommunications 16% Hospitality & leisure Bahamas Healthcare 16% Insurance Energy, utilities & resources have USD$100m+ Asset & wealth management 16% in revenue Cayman Consumer markets 11% Islands Jamaica Banking & capital markets 11% 7% Barbados Engineering & construction 72% Trinidad & Automotive Tobago Industrial manufacturing Guyana C-Suite Transportation & logistics
11 | Caribbean Digital Readiness Survey 2021 Key findings “Of paramount importance will be digital- savvy leadership, the empowerment of staff to innovate and work in new and different ways and the ability to recruit and retain the right talent for digital transformation.” Survey respondent
12 | Caribbean Digital Readiness Survey 2021 Expected benefits Improved customer experience is the number one goal for digital transformation. In the following areas, to what extent Also high on the list of expected benefits are sharper decision making and do/did you expect benefits as a result of digital efforts? enhanced brand and reputation. Grow revenue 25% 48% 20% 6% 1% Create better customer experiences 57% 40% 3% 1% Increase profits 21% 56% 18% 4% 1% Achieve cost savings 24% 59% 11% 6% 1% Improve talent retention and recruitment 19% 44% 29% 7% 1% Innovate our products 29% 48% 20% 1% Enhance brand and reputation 48% 41% 10% 1% Disrupt our own industry or other industries 16% 39% 32% 7% 6% Combat new industry entrants 20% 29% 40% 4% 7% Improve decision-making through better data analytics 60% 39% 2% 0 100 Substantial benefits Moderate benefits Neutral Minimal benefits No benefits
Integrating new technologies Integrating new into newIntegrating technologies Integrating into new technologies Integrating technologies into new into newAttracting technologies Integrating into workers technologies into withworker Attracting the rig Attra business processes business processes products business processes and services products and services skills products and services for the digital skills era for the digit skills 13 | Caribbean Digital Readiness Survey 2021 - 5.43% - 5.43% - 5.43% - 6.52% - 6.52% - 6.52% - 15.22% - - 23.91% - 23.91% - 23.91% - 28.26% - 28.26% - 28.26% - 27.17% - - 42.39% - 42.39% - 42.39% - 42.39% - 42.39% - 42.39% - 29.35% - Leading and trailing - 21.74% - 21.74% - 21.74% - 17.39% - 17.39% - 17.39% - 25.00% - - 6.52% - 6.52% - 6.52% - 5.43% - 5.43% - 5.43% - 3.26% - The findings highlight a wide gulf between a select group of leaders out in front To the best of your knowledge, how do you rank your progress in the following and a trailing pack with considerable work ahead to catch up. As digitisation areas against internal strategic plans/ accelerates, this gap could grow and be increasingly hard to make up. targets? DESLIDE 6 6 Integrating new technologies Integrating new technologies Attracting workers with the Training workers with skills Realising value from new, Encouraging rapid innovation ating chnologies new technologies into Integrating into business Integrating into newprocesses new Integrating technologies technologies into into new products andtechnologies into newAttracting Integrating services into technologies Training right workers skills for Attracting theinto workers with eraworkers with Training digital the right workers with Attracting skills for with Training for the the the right workers skills workers digital with for era the Realising the with right value skills from the new, Realising for digital more ways more value of from new, Realising working Encouraging more value from new, across rapid innovation Encouraging more the business rapi Enco ess es processes business processesproducts andproducts servicesandproducts servicesand services skills for the skills digitalfor erathe digital skills digital era digital era digital era era for the digital era digital ways digital of working ways digital of working across the business ways of working across the busine acro 43% - 5.43% -5% 5.43% - 6.52% 7% - 6.52% - 6.52% 15% - 15.22% - 14.13% - 15.22% - 14.13% 14% - 15.22% - 14.13% - 8.70% 10% - 8.70% - 8.70% 5% - 9.78% - 3.91% - 23.91% -24% 23.91% - 28.26% 28% - 28.26% - 28.26% 27% - 27.17% - 31.52% - 27.17% - 31.52% 32% - 27.17% - 31.52% - 20.65% 26% - 20.65% - 20.65% 5% - 26.09% - 2.39% - 42.39% -42% 42.39% - 42.39% 42% - 42.39% - 42.39% 30% - 29.35% - 27.17% - 29.35% - 27.17% 27% - 29.35% - 27.17% - 35.87% 36% - 35.87% - 35.87% 5% - 35.87% - 1.74% - 21.74% -22% 21.74% - 17.39% 17% - 17.39% - 17.39% 25% - 25.00% - 26.09% - 25.00% - 26.09% 26% - 25.00% - 26.09% - 23.91% 18% - 23.91% - 23.91% 5% - 18.48% - 52% - 6.52% -7% 6.52% - 5.43% 6% - 5.43% - 5.43% 3% - 3.26% - 1.09% - 3.26% - 1.09% 1% - 3.26% - 1.09% - 10.87% 10% - 10.87% - 10.87% 5% - 9.78% - SubstantiallySubstantially behind behind Substantially behind Behind Behind Behind On par On par On par Ahead Ahead Ahead with ng workers skills for with Training theskills for workers Realising the skills with value Realising from new, for the value more from new, Realising more value Encouraging Encouraging rapid innovation from new, more rapid innovation Encouraging SubstantiallySubstantially rapid innovation ahead ahead Substantially ahead Substantially behind Behind On par Ahead Substantially ahead era digital era digital ways digital of working ways of working digital across the business ways of working across the business across the business 4.13% - 14.13% - 14.13% - 8.70% - 8.70% - 8.70% - 9.78% - 9.78% - 9.78% 1.52% - 31.52% - 31.52% - 20.65% - 20.65% - 20.65% - 26.09% - 26.09% - 26.09% 7.17% - 27.17% - 27.17% - 35.87% - 35.87% - 35.87% - 35.87% - 35.87% - 35.87% 6.09% - 26.09% - 26.09% - 23.91% - 23.91% - 23.91% - 18.48% - 18.48% - 18.48% 09% - 1.09% - 1.09% - 10.87% - 10.87% - 10.87% - 9.78% - 9.78% - 9.78%
14 | Caribbean Digital Readiness Survey 2021 Benefits in the bank Almost three-quarters of respondents believe that digital How has your company’s use of digital technologies, processes, and technologies have helped them to boost workforce productivity. behaviours changed the following Over half report increases in employee satisfaction. aspects of your workforce? Employee satisfaction 6% 52% 27% 4% 11% Employee productivity 5% 67% 20% 8% Employee time spent on innovation 4% 38% 44% 4% 10% Employee time spent on strategic tasks 8% 40% 31% 12% 8% Employee time spent serving customers 25% 29% 35% 5% Total employee headcount 14% 68% 15% 0 100 Substantially Increased Increased No change Somewhat reduced Substantially reduced Don’t know / not applicable
15 | Caribbean Digital Readiness Survey 2021 Remote working embraced Over half of respondents expect at least a third of their employees to be working remotely What percent of your office employees do you anticipate will work remotely more than one day a week a year from now. The challenge for leaders is how to manage, more than one day a week a year from inspire and create cohesion across a scattered remote-working workforce. now? 43% 36% 21% Few Many Most Over half of respondents (57%) expect a third or more of their employees to be working remotely more than one day a week a year from now. Over one fifth (21%) of respondents expect most of their employees to be working from home.
16 | Caribbean Digital Readiness Survey 2021 Competing priorities Leading a long list of barriers to transformation, is competing What are the major barriers to efficient management of customer and priorities. This underlines the importance of a clear business case employee experience? Select up to 2. and actively monitoring and managing return on investment. Lack of Lack of Lack of budget strategic clear ROI among affected emphasis functions 9% 9% 17% 10% 15% 2% 38% Lack of budget Interdepartmental Lack of ownership Competing boundaries/hurdles by affected priorities functions
17 | Caribbean Digital Readiness Survey 2021 Lack of understanding Beyond technology, effective leaders recognise the importance How do you and your organisation’s leaders define digital? How does your overall of organisational mindset and integration. But less than 20% of organisation define digital? Choose one respondents feel their workforce understands this. statement that best describes the definition for each group. Digital goes beyond technology alone to Overall reflect a mindset that embraces constant organisation innovation, flat decision-making, and the integration of technology into all phases 32% 25% of the business. 6% Digital reflects our unified approach to 16% customer and employee experience, technology, and business performance. - Digital is synonymous with IT. 53% Digital refers to all the investments we are You and making to integrate technology into all parts of our business. 25% other leaders 18% 25%
Integrating new technologies Integrating new into newIntegrating technologies Integrating into new technologies Integrating technologies into new into newAttracting technologies Integrating into workers technologies into withworker Attracting the rig Attra business processes business processes products business processes and services products and services skills products and services for the digital skills era for the digit skills 18 | Caribbean Digital Readiness Survey 2021 - 5.43% - 5.43% - 5.43% - 6.52% - 6.52% - 6.52% - 15.22% - - 23.91% - 23.91% - 23.91% - 28.26% - 28.26% - 28.26% - 27.17% - - 42.39% - 42.39% - 42.39% - 42.39% - 42.39% - 42.39% - 29.35% - Behind on upskilling - 21.74% - 21.74% - 21.74% - 17.39% - 17.39% - 17.39% - 25.00% - - 6.52% - 6.52% - 6.52% - 5.43% - 5.43% - 5.43% - 3.26% - Nearly half of respondents believe their organisation is behind in To the best of your knowledge, how do you rank your progress in the following training workers with skills for the digital era. The priorities aren’t areas against internal strategic plans/ just technical skills, but also how to create the right mindset. targets? DESLIDE 6 6 Integrating new technologies Integrating new technologies Attracting workers with the Training workers with skills Realising value from new, Encouraging rapid innovation ating chnologies new technologies into Integrating into business Integrating into newprocesses new Integrating technologies technologies into into new products andtechnologies into newAttracting Integrating services into technologies Training right workers skills for Attracting theinto workers with eraworkers with Training digital the right workers with Attracting skills for with Training for the the the right workers skills workers digital with for era the Realising the with right value skills from the new, Realising for digital more ways more value of from new, Realising working Encouraging more value from new, across rapid innovation Encouraging more the business rapi Enco ess es processes business processesproducts andproducts servicesandproducts servicesand services skills for the skills digitalfor erathe digital skills digital era digital era digital era era for the digital era digital ways digital of working ways digital of working across the business ways of working across the busine acro 43% - 5.43% -5% 5.43% - 6.52% 7% - 6.52% - 6.52% 15% - 15.22% - 14.13% - 15.22% - 14.13% 14% - 15.22% - 14.13% - 8.70% 10% - 8.70% - 8.70% 5% - 9.78% - 3.91% - 23.91% -24% 23.91% - 28.26% 28% - 28.26% - 28.26% 27% - 27.17% - 31.52% - 27.17% - 31.52% 32% - 27.17% - 31.52% - 20.65% 26% - 20.65% - 20.65% 5% - 26.09% - 2.39% - 42.39% -42% 42.39% - 42.39% 42% - 42.39% - 42.39% 30% - 29.35% - 27.17% - 29.35% - 27.17% 27% - 29.35% - 27.17% - 35.87% 36% - 35.87% - 35.87% 5% - 35.87% - 1.74% - 21.74% -22% 21.74% - 17.39% 17% - 17.39% - 17.39% 25% - 25.00% - 26.09% - 25.00% - 26.09% 26% - 25.00% - 26.09% - 23.91% 18% - 23.91% - 23.91% 5% - 18.48% - 52% - 6.52% -7% 6.52% - 5.43% 6% - 5.43% - 5.43% 3% - 3.26% - 1.09% - 3.26% - 1.09% 1% - 3.26% - 1.09% - 10.87% 10% - 10.87% - 10.87% 5% - 9.78% - SubstantiallySubstantially behind behind Substantially behind Behind Behind Behind On par On par On par Ahead Ahead Ahead with ng workers skills for with Training theskills for workers Realising the skills with value Realising from new, for the valuemore from new, Realising more value Encouraging Encouraging rapid innovation from new, more rapid innovation Encouraging SubstantiallySubstantially rapid innovation ahead ahead Substantially ahead Substantially behind Behind On par Ahead Substantially ahead era digital era digital ways digital of working ways of working digital across the business ways of working across the business across the business 4.13% - 14.13% - 14.13% - 8.70% - 8.70% - 8.70% - 9.78% - 9.78% - 9.78% 1.52% - 31.52% - 31.52% - 20.65% - 20.65% - 20.65% - 26.09% - 26.09% - 26.09% 7.17% - 27.17% - 27.17% - 35.87% - 35.87% - 35.87% - 35.87% - 35.87% - 35.87% 6.09% - 26.09% - 26.09% - 23.91% - 23.91% - 23.91% - 18.48% - 18.48% - 18.48% 09% - 1.09% - 1.09% - 10.87% - 10.87% - 10.87% - 9.78% - 9.78% - 9.78%
19 | Caribbean Digital Readiness Survey 2021 Held back by time and cost Respondents cited a broad range of factors when asked what’s What are the key barriers to upskilling the workforce at your organisation? holding up upskilling. While lack of time and budget are at the Select up to 3. top of the list, other barriers further down the list such as lack of interest and structure can exacerbate this. Other (Please Specify) 1.33% 3% 3.11% 4% Fear employees will leave once we have invested in them 4.00% 18% 17.78% 6% 5.78% Lack of time Lack of institutional knowledge 6.22% Lack of core education (e.g., math, communication) among employees 6% Difficulty changing leadership mindset and standard processes 7.11% 12.44% Lack of interest among employees Lack of interest 7% 12% Lack of budget Lack of strategic focus on training 10.22% Lack of structure for delivering training 10.67% 10% Lack of clear incentives for employees 10.67% 11% 10.67% Low prioritization among managers 11% 11% Lack of budget Lack of structure Lack of time
20 | Caribbean Digital Readiness Survey 2021 Leading from the front More than 80% of respondents say their CEO is a champion for digital. To what extent do you agree with the following statements about your Around 70% believe that senior management as unafraid to take organisation’s senior management team. calculated risks to support digital transformation. 100 9% 8% Strongly agree 14% 21% 34% Agree 51% Neither agree or disagree agree 45% 61% Disagree 30% 12% 10% Strongly disagree 0 Our CEO is a Our leadership is digitally savvy Senior management explicitly champion for digital. and helps the workforce think incorporate digital strategy into in new ways. corporate strategy.
21 | Caribbean Digital Readiness Survey 2021 Data as the lifeblood 60% of respondents believe that the right data is critical Which of the following is currently more important in driving digital to driving their digital transformation strategy. transformation strategy? Choose one option for each item below. Option a. is Option b. is Both are Neither more important more important important a. Data 60% 4% 34% 2% b. Instinct a. Customer 29% 11% 58% 0% b. Employee a. Business 30% 4% 65% 0% b. IT a. Short-term Outcomes 2% 34% 63% 1% b. Long-term Outcomes
22 | Caribbean Digital Readiness Survey 2021 Harnessing emerging technology Artificial intelligence (AI) is the most prioritised emerging technology. More possibilities are Which of the following emerging technologies have been prioritised or is opening up all the time, from diagnostics to self-driving vehicles. However, AI is a broad and most applicable to your organisation’s complex arena, underlining the importance of clear strategic targeting to make the most of the strategy? Select all that apply. potential within your particular business and avoid competing priorities. 30% of respondents say AI is the emerging technology they have prioritised most. 5% Artificial Intelligence 5% Internet of Things 6% 29% Robotic Process Automation Drones Blockchain 10% Augmented Reality Virtual Reality 3D Printing 20% 22%
Contacts If you would like us to measure the Digital IQ of your business or help accelerate and take transformation to the next level, please reach out to us. Frazer Lindsay kevin.cambridge@pwc.com CEO, PwC in the Caribbean PwC Bahamas frazer.lindsay@pwc.com Mobile: +1 345 516 8606 arthur.wightman@pwc.com PwC Bermuda marlon.bispath@pwc.com PwC Cayman Islands Zia Paton Digital leader arnold.niranjan@pwc.com zia.paton@pwc.com PwC East Caribbean Mobile: +1 868 390 6218 angelique.bart@pwc.com PwC Guyana PwC in the Caribbean bruce.scott@pwc.com PwC Jamaica digital products Leighton McKnight Advisory leader Learn more about the digital leighton.mcknight@pwc.com Mobile: +1 876 383 0720 products we offer to help you lead the next phase of your evolution. © 2021 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general View PwC’s digital products information purposes only, and should not be used as a substitute for consultation with professional advisors.
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