KPMG: Continuous Reinvention Drives Digital Transformation
The concept of digital transformation has undergone a significant shift. What was once viewed as a finite process with a clear beginning and end has now morphed into a state of perpetual change and adaptation. This new paradigm, aptly described as 'continuous reinvention', is reshaping how businesses approach their digital strategies and overall operations.
Recent years have witnessed an acceleration in technological advancements, with artificial intelligence (AI), machine learning and cloud computing at the forefront. These innovations have not only expanded the possibilities for businesses but have also raised the bar for what it means to be digitally competitive. As a result, organisations are finding that a one-time digital overhaul is no longer sufficient to keep pace with the market.
A recent KPMG International report highlights this shift, revealing that 88% of large enterprises are now simultaneously pursuing two or more transformation programmes, while over half (54%) are running three or more concurrently – underscoring how digital transformation has evolved from isolated initiatives to an ongoing, multifaceted process of organisational reinvention.
The Transforming the Enterprise of the Future Report – which drew on data from a global survey of over 480 senior leaders and 1,600 line leaders from companies with at least US$500 million in annual revenues – indicates that less than a third (29%) of senior business leaders consider their technology foundation readiness to be very high.
KPMG report: Business leaders scrambling to keep up with technological advances
This gap between ambition and capability can hinder transformation efforts. The top barrier to digital transformation – according to the KPMG study – is a lack of resources, skills, or expertise. As technologies evolve, maintaining a workforce with up-to-date skills becomes increasingly challenging. Both stakeholders and employees can be resistant to the constant change that continuous reinvention entails. Overcoming this resistance requires strong leadership and a culture that embraces innovation. Organisations must also strike a delicate balance between addressing immediate business needs and investing in long-term digital capabilities.
- 88% of large enterprises are running 2+ concurrent transformation programmes
- Only 29% of senior leaders rate their tech foundation readiness as "very high"
- 73% of digitally mature enterprises report high levels of trust in their leaders
- 54% of companies are pursuing 3+ transformation initiatives simultaneously
To thrive in this new era of continuous reinvention, businesses should focus on several key strategies. Fostering a culture of trust, shared values and alignment with the strategic vision is crucial for long-term success, with the report identifying that 73% of digitally mature enterprises have high levels of trust in their leaders. Continuously improving the organisation's ability to leverage data, technology and human resources is essential for staying competitive, while collaborating with external partners can accelerate innovation and help organisations quickly adapt to new technologies and market conditions – with KPMG’s report finding that only one-third of senior leaders believe their current partner ecosystem is strongly aligned with their transformation goals.
As transformation becomes more complex, the ability to effectively coordinate and manage multiple initiatives simultaneously becomes critical. Approximately 60% of senior leaders and line leads believe that adopting advanced technology will increase the likelihood of transformation success
“We’re at a real inflection point in the digital revolution,” comments Tash Moore, Global Transformation Leader at KPMG International. “Enterprises can capitalise on this to create and unlock greater value and achieve competitive advantage – including the deliberate choices on how digital and data is utilised, to risk management and driving product and service innovation.
“Transformation is now a continuous journey. Our research underscores the importance of trust in leadership and the strategic use of partnerships in navigating this complex digital landscape. Enterprises that effectively integrate advanced technologies and complement with digital literacy, strong leadership and sound judgment are well-positioned to thrive.”
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