2022-09-29-KPMG-KPMG_global_tech_report_2022_26页_1mb

KPMG Global Tech Report 2022 Summary

Core Content

The KPMG Global Tech Report 2022 highlights the progress and challenges of digital transformation across industries. It emphasizes that technology is a key driver for improving customer experience, enhancing profitability, and fostering innovation. Despite economic uncertainties and geopolitical tensions, organizations are showing resilience and a forward-looking attitude toward digital adoption.

Main Viewpoints

• Digital Transformation is Accelerating: The pandemic has accelerated digital transformation, with 99% of executives reporting returns from digital investments. Confidence in digital capabilities is at a record high, with 66% believing their organizations are effective at using technology to advance business strategies.

• Customer Engagement is Central: Customer experience is a primary motivator for IT investment. Organizations are increasingly adopting customer-centric approaches to design workflows, services, and products that meet customer needs. Marketing, Customer Service, and Sales functions are particularly benefiting from these efforts.

• Emerging Technologies are on the Horizon: Organizations are preparing for the adoption of emerging technologies such as Web3, the metaverse, and quantum computing. On average, 67% of respondents expect to embrace these technologies within 2 years. The metaverse is especially appealing in financial services, while energy and chemicals show the least interest.

• Cloud Adoption is Widely Implemented: Cloud adoption is now standard for most businesses, with 88% indicating they are advanced in their cloud journey. The top benefits of cloud systems include lower total cost of ownership and efficiency gains. However, 58% of cyber security teams admit they are behind schedule, highlighting the need for better planning and resource allocation.

• Talent Shortages are a Major Challenge: The lack of skilled talent, particularly in healthcare and manufacturing, is a significant barrier to digital transformation. Companies are advised to position themselves as attractive workplaces for technologists, offering development opportunities and clear communication of benefits.

• Cyber Security is Critical to Trust and Loyalty: Cyber security is not just a compliance burden but a growth enabler. Embedding security from the beginning of digital initiatives is essential to building trust with customers. Despite confidence in cyber capabilities, 58% of security teams admit they are behind schedule, indicating a need for better alignment and investment.

• Cultural Resistance and Budget Constraints: Risk-averse cultures and budget limitations are among the top challenges for digital transformation. Organizations that are extremely effective in digital transformation are less likely to face cultural resistance. Budget inadequacy is also a significant issue, with most tech budgets accounting for 10–20% of the company’s overall budget.

• Digital Maturity Traits: The report identifies seven defining traits of digitally-mature organizations, which help ensure sustainable and impactful digital transformation. These traits include breaking down silos, fostering collaboration, and embedding security and innovation across the enterprise.

Key Information

Digital Transformation Outcomes

• 99% of executives have seen returns from digital investments.
• 66% of respondents are confident their organizations are effective at using technology to advance business strategies.
• 88% of businesses are advanced in cloud adoption.
• 58% of cyber security teams are behind schedule.

Emerging Technologies

• 67% of respondents expect to adopt emerging platforms like the metaverse and Web3 within 2 years.
• 72% expect to invest in quantum computing within the same timeframe.
• 46% of businesses are making plans for future investment in emerging technologies, but 65% have not yet taken action.

Talent and Culture Challenges

• 52% of healthcare and 48% of manufacturing businesses face significant talent shortages.
• 24% of respondents report that risk-averse cultures are holding back digital transformation initiatives.
• 46% of organizations have less than 10% of their annual budget allocated to technology.

Cyber Security

• 58% of cyber security teams admit to being behind schedule.
• 76% of CISOs are satisfied with the success of their cloud transformation programs.
• Customer trust is closely linked to cyber security, with 62% of respondents still working to eliminate silos between functions.

Digital Maturity Traits

1. Tear down silos: Encourage cross-departmental collaboration to improve customer experience and reduce inefficiencies.
2. Address the talent crisis: Build a culture that attracts and retains skilled technologists.
3. Embed cyber security early: Ensure security is integrated into digital initiatives to protect customer trust.
4. Prioritize customer value: Align technology investments with customer-centric goals.
5. Leverage cloud for efficiency and sustainability: Cloud migration and optimization are critical for long-term success.
6. Plan for emerging technologies: Develop clear roadmaps for the adoption of new and disruptive platforms.
7. Foster innovation culture: Encourage a mindset that supports digital transformation and reduces resistance.

Conclusion

The KPMG Global Tech Report 2022 underscores that digital transformation is not just a trend but a necessity for competitiveness and customer satisfaction. While progress is evident, challenges such as talent shortages, cultural resistance, and cybersecurity risks remain. Organizations that focus on collaboration, customer value, and proactive planning are more likely to succeed in their digital maturity journey.