Fintech
A third of business leaders believe digital transformation is now a “continuous reinvention”
As rapid advances in technology continue to drive business transformation programs, less than a third (29%) of senior executives believe their technology readiness is very high, according to a new survey from KPMG International.
KPMG research findings Transforming the Enterprise of the Future Report reveal the importance of advanced technologies in driving transformation, with 76% of senior executives believing that generative AI, neural networks and digital twins will significantly increase the likelihood of transformation success.
Despite this, companies are scrambling to keep up. For the vast majority of companies, transformation is no longer episodic, but a state of continuous reinvention. The majority (88%) of companies are now running two or more transformation programs, while more than half (54%) are running three or more at once.
The research identifies the five main obstacles that limit digital transformation: lack of resources, skills or experience; stakeholder resistance to change; stakeholder and employee resistance; conflicting business objectives; lack of funding or unclear business case.
To unlock capacity and value, KPMG’s report predicts that top performers have strengths in four areas:
- Resilient Cultures: Creating a culture of trust, shared values and alignment around strategic vision is key to transformation success and long-term organizational resilience. Research reveals that 73% of digitally mature companies have high levels of trust in their leaders.
- Digital Maturity: Digitally mature companies are more likely to perform better. However, many companies are not fully leveraging the value of their data, technology and people. Two-thirds of senior executives rated their technology foundation as no more than adequate; while most expect technology’s transformational impacts to increase over the next one to three years.
- Partner Ecosystem Alignment: Leading companies are leveraging partnerships to accelerate go-to-market strategies, overcome supply chain challenges, and transcend technology capabilities. Our research shows that only a third of senior executives believe their current partner ecosystem is highly aligned with their transformation goals. Looking ahead, these leaders expect to invest more in partnerships than in building or buying technology.
- Strong orchestration capabilities:About 60% of senior executives and line managers believe that adopting advanced technologies will increase the likelihood of transformation success.
The report highlights that new technologies and vast data repositories are helping companies create greater value. These and other tools enable better resource allocation, data analytics and insights, customer understanding, risk management, and product and service innovation.
Commenting on the research findings, Tash Moore, Global Transformation Leader at KPMG International, said:
“We are at a true inflection point in the digital revolution. Companies can capitalize on this to create and unlock greater value and gain a competitive advantage, including deliberate choices about how digital and data are used, managing risk, and driving product and service innovation.
“Transformation is now an ongoing journey. Our research highlights the importance of trust in leadership and strategic use of partnerships in navigating this complex digital landscape. Companies that effectively integrate advanced technologies and complement them with digital literacy, strong leadership and sound judgment are well positioned to thrive.”