KPMG: Digital Advances Needed for Enterprise Transformation

Technology adoption increases the likelihood of transformation success for 60% of senior leaders, according to KPMG International
KPMG research suggests that strong leadership and flexibility are key for businesses to unlock digital opportunities and capabilities like AI

Leadership, sound judgement and the flexibility to adapt remain essential, with KPMG suggesting these qualities will allow a business to successfully digitally transform.

The firm’s latest research, Transforming the Enterprise of the Future, reveals that 80% of large enterprises are now pursuing two or more organisational transformations and are satisfied with their progress. It finds that they are rushing to keep up with new digital needs, which is an improvement to previous research undertaken by KPMG.

Based on a survey of more than 2,000 executives, KPMG outlines four key building blocks for success:
  • A strong data and technology foundation
  • Transformation orchestration
  • A commitment to a resilient culture
  • Ecosystem strategies

Findings reveal that organisations are working to fortify their business position by enhancing their data and technology, in addition to upgrading their ecosystem strategies to meet changing marketplace demands.

Technology adoption powers enterprise transformation

These advancements, according to KPMG, depend on leadership - with the most successful leaders thinking and behaving in new ways to make the most of their assets.

The report suggests that transformation has been “plagued” by short-term thinking. Whilst businesses have been eager to invest greatly in AI and other disruptive technologies, only one-third of senior leaders currently believe their partner ecosystem is aligned enough with their transformation goals.

Very few firms have already moved to support critical digital transformation changes, with KPMG revealing just 29% of senior business leaders have reported they believe their technology foundation is ‘very high’.

Key findings from the report include:
  • 88% of enterprises are currently running 2+ significant transformation programmes concurrently
  • 73% of digitally mature enterprises have high levels of trust in their leaders
  • 29% of senior leaders rate their tech foundation readiness as very high (64% moderately ready)
  • 76% of senior leader believe adopting advanced technologies will increase likelihood of transformation success
  • Only one-third of senior leaders believe their current partner ecosystem is strongly aligned with their transformation goals

A need to remain competitive

Technology adoption increases the likelihood of transformation success for 60% of senior leaders, according to KPMG’s research. Beyond saving costs, the focus is currently on how to enhance long-term changes such as employee engagement and customer satisfaction.

Source: KPMG International

As part of all of this, the firm highlights that clear leadership and communication will always matter.

“Transformation is now a continuous journey. We’re at a real inflection point in the digital revolution. 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.”

Tash Moore, Global Transformation Leader at KPMG International

Transformation is increasingly important as business competition evolves to embrace technology on a larger scale. New technologies like AI can help improve efficiencies and enable enterprises to create new revenue streams, reveal competitive insights and unlock greater innovation opportunities.

To embrace this, KPMG indicates a need for business leaders to build and maintain trust and resilient workplace cultures. The report suggests that leaders will be more successful if they harness the right technologies as they emerge to digitally transform more successfully.

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