1/3 of organisation leaders believe digital transformation is ‘continuous’

A new study shows lack of ‘technology foundation readiness’, despite rapid advancements in infrastructure and systems driving change. 

Conducted by KPMG International, the report, Transforming the Enterprise of the Future, shows that 76% of senior organisation leaders see developments in tech as pushing wider transformation. In particular, AI, neural networks, and digital twins are highly likely to catalyse significant overhauls in policy and processes. 

Nevertheless, the vast majority of leaders are struggling to keep abreast with developments as they happen because they are no longer episodic. Instead, tech advancements are continuous, and most enterprises – 88% – are running two or more transformation programmes simultaneously. 54% are running three or more. 

Skills shortages, lack of resources, stakeholder and employee resistance to change, unaligned business goals, and vague business cases were all common hinderances. The report suggests creating a culture of trust and shared values, understanding how to leverage full digital capacity, and creating intelligent partnerships with other organisations are vital to overcoming these issues. 

KPMG’s analysis focused on the private sector, but recent assessments in the public sector show little difference. In May, the Public Accounts Committee published a study that showed a widespread shortfall in IT skills across the civil service, which was preventing departments from acting as ‘intelligent clients’. This places local and national government teams in a particularly vulnerable position to escalating costs and failed implementations. 

‘We’re at a real inflection point in the digital revolution. Enterprises can capitalize on this to create and unlock greater value and achieve competitive advantage – including the deliberate choices on how digital and data is utilized, to risk management and driving product and service innovation,’ said Tash Moore, Global Transformation Leader at KPMG International.

‘Transformation is now a continuous journey. Our research underscores the importance of trust in leadership and the strategic use of partnerships in navigating this complex digital landscape,’ they continued. ‘Enterprises that effectively integrate advanced technologies and complement with digital literacy, strong leadership, and sound judgment are well-positioned to thrive.’