Welcome to yet another edition, chief!

In today’s edition — Businesses taking the lead in digital and AI adoption are outperforming the rest, not only because they are hiring more engineers or training them, but because they are raising the digital proficiency level of their entire workforce. A recent report shows that an inclusive approach to a digital-first strategy can give businesses a competitive advantage, and it’s in their interest to take the shot sooner rather than later.

Why Digital Upskilling Matters

Vishwas Ved

The finance team in a mid-sized manufacturing company was recently asked to explain why the cost of a new vendor — a cloud storage service provider — kept on rising.

The response didn’t come for a while. The problem was that nobody from the finance team could understand the technicalities of the cloud bill. 

So they did the next best thing: they waited for the IT guys to decode it. That resulted in delays, a long thread of email exchanges, and of course a few embarrassing moments in front of leadership.

It may sound like the story of a team that did not do as well as expected, but it raises two important points: 

One, if the finance team does not understand where the money is being spent, how is it going to ask due-diligence questions regarding a department’s spending plans? And two, should digital skills and knowledge continue to be only for the tech guys?

For answers, let’s turn to a recent McKinsey report. 

Digital Proficiency 

According to the report, companies that are ahead in digital and AI adoption are outperforming the rest, and they are delivering about two to six times the shareholder returns of laggards.

The report says that the real difference comes not from a team of techies but from raising the digital proficiency of the whole workforce. Yes, everyone needs to be a techie, so to speak.

For CFOs, this fundamental change in skill requirements matters, because if the workforce isn’t equipped to understand or handle the digital tools, the tech investments are bound to show a lower ROI. 

The Case Studies

The report lists a few companies that saw the benefits of improving the digital expertise of their employees. 

A global consumer goods company set up a digital academy for around 3,000 staff. Within 18 months, throughput on the shop floor was up by 20 to 40%. 

A professional services firm ran a three-month “skills accelerator” in AI and blockchain — bootcamps, apprenticeships, and live client work. The training had a direct impact on the revenue. 

Similarly, a global retailer launched a tech workshop that helped current staff grow and also pulled in new hires who wanted to build their skills.

A key reason these programmes worked is that learning wasn’t treated as extra work. It was built into the day-to-day.

People got recognition through badges and certificates, while managers acted as coaches. In some cases, AI itself was used as an instructor. 

According to the report, this kind of constant learning, embedded into the day-to-day, is what made the difference.

Risks of Underinvestment

It is estimated that by 2027, the character of almost a quarter of jobs worldwide will change as AI adoption picks up pace. 

The report points out that CFOs face two risks. First, if they do not invest in skills, they will end up with top-notch systems nobody uses properly. 

Second, if they throw money at broad training without any focus, they will only waste resources — financial as well as human — with nothing to show in the numbers.

The secret lies in being targeted. That means basics for everyone, and deeper expertise for specialists. 

So, while sales and marketing teams get tech savvy, the tech team builds business skills — communication, problem solving, leadership — so their technical expertise is in sync with the company’s overall goals.

Yes, the HR budgets are going to go up, but it’s a necessary cost that will ensure that big tech investments don’t turn into abandoned assets.

Final Words

The report makes it clear that digital skills now deserve to be granted the status of core infrastructure, and companies that truly adjust their business model to accommodate the change will come out on top.

For CFOs, a key takeaway is that skills should be viewed like any other long-term investment where the payback isn’t always immediate. But its benefits show up in better productivity and lower attrition.

The bottom line: every employee is now, in some way, a techie. And companies that get serious about this won’t just cope with change. They’ll stay ahead of it, and it will definitely show in their bottom line.

$55 Billion

That’s the value of the deal to acquire Electronic Arts, the maker of video games like Madden NFL, Battlefield, and The Sims. The company is being acquired by an investor group including Saudi Arabia’s sovereign wealth fund in the largest private equity-funded buyout in history. The investors, who also include a firm managed by Jared Kushner, President Donald Trump’s son-in-law, and the private equity firm Silver Lake Partners, valued the deal $55 billion. EA stockholders will receive $210 per share. The deal far exceeds the $32 billion price tag to take Texas utility TXU private in 2007, which had shattered records for leveraged buyouts.

—Founder Who Sold Startup to JPMorgan Jailed. Charlie Javice, the founder of a startup company that promised to revolutionise the way college students apply for financial aid, was sentenced to more than seven years in prison for cheating JPMorgan Chase out of $175 million by exaggerating how many students it served. Javice, 33, was convicted in March of duping the banking giant when it bought her company, called Frank, in the summer of 2021. She made false records that made it seem like Frank had over 4 million customers when it had fewer than 300,000.

—Spotify Founder Steps Down from CEO Role. Spotify said Tuesday that founder Daniel Ek is stepping down as CEO to become the executive chairman, in an announcement that sent its shares sliding in pre-market trading.The Stockholm-based streaming giant said Ek will be replaced by two lieutenants who will become co-CEOs: Chief Product and Technology Officer Gustav Söderström and Chief Business Officer Alex Norström. The pair, who are also currently co-presidents, will transition into their new jobs on Jan. 1 and will report to Ek.

—Shopping Feature Inside ChatGPT for US Users. OpenAI has rolled out direct purchasing inside ChatGPT for US users, letting shoppers complete transactions without leaving the conversation interface through a new feature called Instant Checkout. The company partnered with Stripe to create the system, initially supporting Etsy sellers with availability for over 1M Shopify merchants coming soon. Users can click a "Buy" button after ChatGPT suggests products, then review order details and pay in chat. 

—Adar Poonawalla in Talks to Buy IPL Team RCB. Serum Institute of India’s CEO Adar Poonawalla is in talks with Royal Challengers Bengaluru (RCB) owners Diageo Plc to possibly acquire the Indian Premier League’s (IPL) 2025 champion, sources said. It is not yet clear if Diageo Plc is looking to sell its complete stake in RCB. The British multinational alcoholic beverage company is looking for around $2 billion in RCB’s valuation, according to media reports.

—Ozempic Gets Approval for India Launch. The race for a share of India’s growing obesity market is set to intensify with the Central Drugs Standard Control Organisation (CDSCO) giving Danish drugmaker Novo Nordisk approval for its blockbuster diabetes drug Ozempic. Approval for the injectable semaglutide-based solution was given on September 26, according to the CDSCO’s website. Experts say Ozempic’s entry is expected to give a boost to the antiobesity market, estimated to be ₹752 crore. Of this market, semaglutide accounts for ₹426 crore.

ICYMI | VAT Not to Do

Missed last week's update? Like in the GST 2.0, several countries across the globe have reduced their VAT (value-added tax) rates in the past to boost consumption and fire up their economies. But studies show that the outcome of these tax cuts seldom met expectations. The valuable lessons from the world’s ambitious changes in their VAT may help India reset its expectations from the recent tax cuts and also know what to do and what not to do.

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