By Heather Clancy
October 2, 2015

If you want to know who really controls a corporate strategy, follow the money. And when it comes to digital business, there’s new evidence to suggest the CIO’s influence is waning.

Close to 70% of the money for social media investments, data visualization, experiments with wearables, Internet of things projects and other initiatives typically lumped under the digital banner comes from outside the IT budget, according to consulting firm PwC’s latest Digital IQ survey. That’s a big increase from the prior year. Increasingly, the CIO’s focus will be “limited” to internal responsibilities, the PwC data suggest.

Basically that means defining digital innovation is an executive team sport that should include everyone with a C-level title, said Matt Egol, partner and chief strategy office of digital services at PwC. “The CEO is far more involved.” That was the case for almost three-quarters of the executives surveyed by PwC. Again, that was a big increase from last year.

PwC’s study reflects nearly 2,000 executives, split equally between managers with a specific technology role and those with other responsibilities.

What do digitally minded companies hope to accomplish?

The top priority is driving new top-line revenue within three years, according to the PwC study and a separate report out this week from McKinsey Institute. And both cite a lack of cohesive leadership as the biggest obstacle to achieve that goal. “At the business-unit level, the high performers are more than twice as likely to others to say they’ve dedicated their best people and resources to their companies’ digital initiatives,” McKinsey reports.

Speaking of digital transitions, the AARP thinks there should be more apps and technologies focused on people of a certain age. (After all, life starts at 50, right?) The advocacy group is teaming with JPMorgan Chase on a $40 million fund dedicated to innovation for “seniors.” Finally, watch Fortune Live at 3 pm Eastern for an interview with Dell’s Internet of things guru. Enjoy your weekend!

 

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