The study showed that firms with mature digitised platforms and then invest in new technology "significantly increase the organisation's likelihood of being highly competitively agile, compared to firms with immature digitised platforms that make similar investments."
Insead said this study gathered new data that can help business leaders decide what business strategies to take when it comes to investing in IT.
"Our findings show clearly the direct link between specific technology investments and improved organisational performance when these investments are made carefully," said Theodoros Evgeniou, associate professor, Decision Sciences and Technology management, INSEAD, and academic director, eLab. "We have long known that some technology investments succeed and some fail, but we have never been able to pinpoint why. We are excited by this research because it provides new data that can help business leaders decide how to invest in technology."
Research findings can also help government and policy-makers by providing the appropriate regulatory environment that can harness the firms' business enablers. For instance, on the issue of digital maturity, governments can create the right environment to allow the storage and flow of data in a stable, seamless and secure way, researchers said.
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