Digital transformation: How tech companies need to transform themselves

2 years ago 262

While providing products and services to customers, tech companies are adopting caller technologies to accelerate their ain integer transformations, a caller study from KPMG says.

Global tech companies person provided products and services to organizations spanning assorted industries during the pandemic, and a caller study looks astatine the cardinal technologies they are utilizing to propel their ain businesses forward.

SEE: Research: Digital translation initiatives absorption connected collaboration (TechRepublic Premium)

Artificial intelligence is the fig 1 technology, followed by the Internet of Things and robotic process automation (tied astatine 2nd place) and cloud, drones, e-commerce platforms and video/collaboration technologies (all tied astatine third), according to the KPMG report, Transforming the transformers.

AI allows tech companies to enactment faster and smarter successful analyzing everything from changing lawsuit behaviors to optimizing proviso chains, the study stated. IoT devices and sensors populate servers with new, often unstructured, information connected customers and operations for AI to analyze. As concern models and fiscal forecasts change, RPA allows companies an introduction constituent into automation that frees employees to absorption connected much strategical activities portion expanding ratio and productivity.

Predictably, adoption of video collaboration, e-commerce, cloud, 5G and integer payments grew during the pandemic to conscionable the needs of hybrid workforces and alteration distant lawsuit interactions, the study said. Acceptance of video collaboration and integer outgo technologies, successful particular, person been accelerated by the pandemic, according to the KPMG report.

As businesses discovered they had to rapidly follow caller technologies and reinvent however they worked, the aforesaid held existent for tech companies present trying to fig retired however to usage them to substance their maturation and apical line, the study said.

When asked however these technologies volition alteration their companies, leaders ranked accrued marketplace stock and enhanced lawsuit loyalty astatine the top. Following these, leaders program to utilize caller tech to make longer-term competitory advantages specified arsenic generating caller insights, greater information information and vigor efficiency.

Lack of endowment is the main inhibitor

Even earlier the pandemic caused request for tech products to skyrocket, the tech manufacture was facing a well-documented shortage of skilled workers. This deficiency of skilled endowment was named by KPMG survey respondents arsenic the apical origin (27%) limiting integer translation efforts astatine their companies.

To code the skills gap, tech companies "expect to pat into the contingent workforce to rapidly get the needed expertise," the study said. They volition besides prosecute new, imperishable employees with the needed skills arsenic good arsenic reskill existing workers.

SEE: NFTs cheat sheet: Everything you request to cognize astir non-fungible tokens (free PDF) (TechRepublic)

Besides a deficiency of interior expertise, different issues that are limiting integer translation from happening astatine tech companies see deficiency of capital/funding (22%), deficiency of standards for caller technologies (21%), restrictive regulatory policies (20%), and bequest IT infrastructure (18%), according to the report.

Data remains an imperative

Despite the mandate to usage caller technologies to turn the apical line, determination is inactive a tremendous accidental to utilize the treasure trove of information being created by caller integer technologies implemented during the COVID-19 pandemic, the study noted. A abstracted KPMG survey recovered that lone 32% of tech companies afloat utilize their lawsuit data. And 57% bash not person a defined enterprise-level information strategy.

"The adjacent frontier for tech companies connected their ain integer translation journeys is the information imperative—deriving real-time insights from the monolithic amounts of information amassed passim the pandemic to make caller maturation opportunities and heighten the lawsuit experience," said Mark Gibson, KPMG U.S. technology, media and telecom leader. "The information imperative holds existent for companies crossed different industries arsenic well. Technologies similar AI and IoT are important pieces of the puzzle and should beryllium underpinned by a holistic, enterprise-wide information strategy."

Further, becoming data-first creates a competitory advantage, and leveraging information crossed each value-chain activities correlates to the imaginable for outsized fiscal returns," the study said.

The survey besides revealed that tech companies said they expect a 4% oregon greater summation successful show effectiveness successful lawsuit service, operations, cybersecurity, endowment absorption and different activities erstwhile they summation concern successful information by 25%.

"To execute this, information strategy and concern indispensable beryllium prioritized over, oregon astatine slightest connected par with, caller exertion implementations," the KPMG study said.

Measuring the occurrence of integer initiatives

As hard arsenic it whitethorn beryllium to program and instrumentality digitization crossed galore systems and functions, tech companies inactive question to measurement their results. Most of the methods utilized are quantitative—such arsenic instrumentality connected concern and gross growth.

One notable probe uncovering was that the 2nd astir fashionable measurement successful the survey was brand/reputation, which KPMG said "is a reflection of some marketplace cognition and the existent lawsuit experience. In the tech sector, possibly much than successful immoderate other, the cognition of being innovative and cutting-edge tin play an outsized relation successful institution success."

The KPMG study recommended that tech investments beryllium aligned with the wider extremity of customer-centricity and to enactment the lawsuit archetypal successful immoderate tech and information strategy. Other suggested actions include:

accelerate information access, absorption and investigation to make caller lawsuit insights, make go-to-market strategies and unlock caller gross streams,
focus connected the workforce capabilities that volition beryllium needed for a aboriginal connected enterprise, and
rethink the equilibrium betwixt carnal and virtual assets, quality enactment and automation.

The 2021 KPMG Technology Industry Survey includes responses from much than 800 planetary leaders successful the tech manufacture crossed each large sub-sectors including exertion services, internet/e-commerce, hardware/electronics, software/SaaS, and semiconductors, the institution said. About two-thirds (65%) of the respondents were C-level executives.

Innovation Newsletter

Be successful the cognize astir astute cities, AI, Internet of Things, VR, AR, robotics, drones, autonomous driving, and much of the coolest tech innovations. Delivered Wednesdays and Fridays