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Digital transformation continuous, not episodic
GenAI, neural networks, digital twins will significantly enhance enterprise success
The Asset 10 Jul 2024

For the vast majority of enterprises transformation is no longer episodic, but a state of continuous reinvention, with a majority (88%) of enterprises now running two or more transformation programmes, while over half (54%) are running three or more concurrently, according to a recent report.

And advanced technologies are driving this transformation, with 76% of senior leaders believing that generative artificial intelligence (GenAI), neural networks and digital twins will significantly enhance the likelihood of transformational success, finds KPMG International’s Transforming the Enterprise of the Future report, which drew on data from a global survey of over 480 senior leaders and 1,600 line leaders from companies with at least US$500 million in annual revenues.

However, while rapid advances in technology are continuing to drive business transformation agendas, the report notes that less than a third (29%) of senior leaders consider their technology foundation readiness to be very high.

Despite this, enterprises are scrambling to keep up. The top five barriers limiting digital transformation, the report finds, are:

  • Lack of resources, skills or expertise
  • Stakeholder resistance to change
  • Stakeholder and employee resistance
  • Competing business goals
  • Lack of funds, or unclear business case. 

To unlock capacity and value, the report expects outperformers to have strengths across four areas:

  • Resilient cultures: Establishing a culture of trust, shared values and alignment to the strategic vision is a key to transformation success and long-term organizational resilience. It comes as the research reveals that 73% of digitally mature enterprises have high levels of trust in their leaders.
  • Digital maturity: Digitally mature enterprises are more likely to outperform. Yet, many enterprises are not leveraging the full value of their data, technology and people. Two-thirds of senior leaders rated their tech foundations as no better than adequate; while most expect the impacts of technology on transformation to rise in the next one to three years. 
  • Partner ecosystem alignment: Leading companies are leveraging partnerships to accelerate go to-market strategies, outmanoeuvre supply chain challenges and leapfrog technology capabilities. Only one-third of senior leaders, the research shows, believe their current partner ecosystem is strongly aligned with their transformation goals. Looking ahead, these leaders expect to invest more in partnerships rather than in building or buying technology.
  • Strong orchestration capabilities: Approximately 60% of senior leaders and line leads believe that adopting advanced technology will increase the likelihood of transformation success.

As well, new technologies and expansive data repositories, the report emphasizes, are helping enterprises to create greater value. These and other tools enable better resource allocation, data analysis and insights, customer understanding, risk management, and product and service innovation.

“We’re at a real inflection point in the digital revolution,” states Tash Moore, KPMG International’s global transformation leader. “Transformation is now a continuous journey. Enterprises that effectively integrate advanced technologies and complement with digital literacy, strong leadership and sound judgment are well-positioned to thrive.”

Victor Cheung
Victor Cheung
director, ETF investment strategist
Mirae Asset Global Investments
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Inga Kudzmaite
Inga Kudzmaite
regional treasury director, Asia
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