Published: 27 October 2022
Despite accelerating digital spending, most organizations have not achieved expected business outcomes from digital. CFOs in labor-intensive industries should benchmark enterprise digital spending against that of their peers and identify what drives that spend to calibrate future allocations.
Most labor-intensive organizations saw digital acceleration from prepandemic levels, but these increases were in many cases minimal, which points to the digital foundation labor-intensive organizations had previously established.
Funding for digital spending in labor-intensive industries is largely decentralized, with operating expenditure (opex) favored over capital expenditure (capex), 70-to-30, and non-IT funding sources over corporate IT, 52-to-48.
Benefits of enterprise digital spending occur in pockets, despite overall underperformance, signaling that digital’s potential to drive business outcomes is possible but not yet fully realized.
To ensure digital spending aligns with enterprise strategy and drives value realization, CFOs in labor-intensive industries should:
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