Despite rapid technological advancements driving company transformation objectives, only 29% of senior leaders rate their technology foundation readiness as very high, according to a survey by KPMG International. The report highlights the critical role of advanced technologies in achieving transformation, with 76% of senior leaders confident that generative artificial intelligence, neural networks, and digital twins will greatly improve the chances of successful transformation.
However, businesses are struggling to keep pace. For many enterprises, transformation is no longer occasional but a continual process of reinvention. A large majority (88%) of enterprises are currently engaged in two or more transformation initiatives, with 54% managing three or more concurrently.
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According to the report, the main challenges impeding digital transformation encompass insufficient resources, skills, or expertise; resistance to change among stakeholders; resistance from both stakeholders and employees; conflicting business objectives; and inadequate funding or an unclear business rationale.
The report emphasized four areas that could enable businesses to increase capacity and value:
Building Resilient Cultures: Creating an environment of trust, common values, and alignment with the strategic vision is crucial for achieving transformation success and enduring organizational resilience. This is underscored by findings showing that 73% of digitally advanced enterprises have strong trust in their leadership.
Digital Advancement: Enterprises that have achieved digital maturity tend to perform better. However, numerous enterprises are failing to fully utilize their data, technology, and workforce. Two-thirds of senior leaders assessed their technological foundations as merely adequate, while the majority anticipate increasing technology’s impact on transformation over the next one to three years.
Alignment with Partner Ecosystem: Leading firms are utilizing partnerships to expedite market entry, address supply chain hurdles, and enhance technological capabilities. Studies indicate that just one-third of senior leaders perceive their existing partner networks as highly aligned with their transformation objectives. In the future, these leaders anticipate focusing more on investing in partnerships rather than on developing or purchasing technology.
Effective Coordination Skills: Around 60% of senior leaders and frontline managers believe that embracing advanced technology will enhance the prospects of achieving successful transformation.
The report also underscored that new technologies and extensive data repositories are assisting enterprises in generating increased value. These tools, alongside others, facilitate improved resource allocation, data analysis and insights, customer comprehension, risk management, and innovation in products and services.
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