A key to revenue growth in Big Tech era is missing at most companies

A key to revenue growth in Big Tech era is missing at most companies

JP Morgan chairman and CEO Jamie Dimon recently captured headlines when he said his Wall Street management team should be "scared s---less" of the fintech threat. A new MIT study of management teams at near-2,000 companies globally with $1 billion or more in revenue supports the J.P. Morgan chief's view: the majority of corporate executives are not "digitally savvy" and it is costing them in terms of revenue potential from innovation and cross-selling. In financial services, specifically, the MIT study published on Wednesday finds that only 12% of teams are meeting the mark digitally, but it is not even the worst among sectors as a majority of public companies struggle to compose senior teams with digital DNA. Only 7% of all companies in the MIT study were rated as being "digitally savvy," and those companies outperform peers by as much as 48% on revenue and valuation, as well as 15% on net margin. Top "digitally savvy" companies generate 59% of revenue from innovations introduced within a three-year-period. In an era during which the tech sector has created multiple trillion-dollar-plus market cap companies, moving quickly is critical, and the MIT researchers say it is not too late. Investments, if large enough