KPMG global tech report highlights how tech frontrunners reap rewards through identifying value despite struggles to keep up with the pace of change.
KPMG International has published its KPMG global tech report 2024, which explores the tech strategies employed by organisations across the globe to deliver value against a backdrop of swift tech advancements and the accompanying industry excitement. It also examines how organisations have balanced their need to keep up with the pace of change with the importance of prioritising initiatives based on their business value despite the temptation to make hurried business decisions for fear of falling behind or missing out.
According to the new report in which more than 2,450 tech execs worldwide were surveyed, the industry is getting better at identifying and delivering value with many areas displaying measurable improvements on last year. It should come as no surprise that the undeniable pace of tech change led to over three-quarters of the respondents sharing that they worry they struggle to keep up; however, this concern was counterbalanced by 87 percent of respondents reporting higher profits thanks to their tech investments — a 25 percent increase on 2023. This encouraging stat is perhaps on account of organisations adopting a more balanced view when considering their tech investment, with 53 percent strategically evaluating their tech investment portfolio to ensure it is aligned with their long-term goals.
Commenting on the report findings, Akhilesh Tuteja, Partner & National Leader, Clients and Markets, KPMG in India said, “The KPMG global tech report 2024 highlights a pivotal shift in how organisations engage with technology – transitioning from a reactive stance to a more strategic, value-focussed model. Although the majority of organisations report productivity gains driven by AI, challenges such as risk aversion and inadequate governance remain significant barriers to transformation. To unlock AI’s full potential, leaders must drive trusted adoption, ensure transparency, and embed AI within a structured, value-driven framework that extends beyond the hype.”
“As organisations increasingly profit from their technological investments, it is essential to have robust ambitions to harness the advantages of swiftly advancing technologies. Tech executives should focus on strategy over hype to help guarantee that their organisation’s investments in technology continue to produce significant benefits,” said Guy Holland, Global Leader, CIO Center of Excellence, KPMG International.
This year, a significant uplift was also observed in data capability, now cited as a critical enabler within the modern business, shifting from differentiator to an expectation within the modern enterprise. The bar has been raised when it comes to data maturity. While tech professionals continue to look at the trends set by their market peers for guidance, more tech execs are basing investment decisions on their primary evidence. According to the research, frequent data-centric evaluation was recorded as one of the top two best tactics for achieving quick wins from tech investments with organisations in the top two data maturity categories more likely to be satisfied with the value generated across all their tech investments. However, the research indicates that only 24 percent of organisations are actively focusing on nurturing a data-centric culture and ensuring data interoperability in the near term, which may present a substantial barrier to harnessing the full potential of data-driven insights.
Data is fundamental to the process of digital transformation and harnessing value out of tech investments. The survey shows leaders view data security as a priority evidenced by 35 percent of respondents focusing on improving the protection of their data in the next 12 months, 33 percent prioritising data accessibility and democratisation, and 32 percent prioritising data governance. According to the report, prioritising risk and cybersecurity will remain essential components for securing value, with cybersecurity and privacy concerns reported as the factors most likely to trigger the emergency brake in a digital transformation program.
The report shared a few additional threats to digital transformation success: 80 percent of executives say that risk aversion results in senior leadership responding to market forces slower than their competitors. In addition, poor governance and coordination appear in the top three toughest challenges that derail transformation progress, with 59 percent claiming their centralised decision-making reduces their organisation’s ability to respond to market signals and embrace new tech. The good news is these challenges can be overcome.
AI has occupied the headlines the last two years with the report revealing encouraging news that almost three quarters of organisations are already achieving business value from their AI investments, despite only one in three achieving this at scale. To unlock sustainable value and achieve success that outlasts the hype, tech leaders should apply conventional rigor, build consensus, unlock AI capability, and drive trusted AI transformation across their organisations.
Although it is positive to see that 74 percent of respondents say AI is already increasing the productivity of their knowledge workers, the report discloses that AI is also fueling anxiety in the workforce with 78 percent worrying that users see AI as a ‘black box’.
