The new reality

The global COVID-19 pandemic has put digital transformation firmly in the spotlight. The need for increased agility, scalability and remote accessibility coupled with changing consumer behaviors has accelerated our need in agile, effective and long-term digital solutions.

However, the global pandemic has exposed fragmented digital infrastructures and lack of alignment between front, middle and back office functions – from customer service, to supply chain and operations to HR and IT. This disconnect impacts the ability of organizations to deliver seamless customer experience and to be truly engineered for profitable growth.

That is why now is the time to adopt a connected enterprise mindset and accelerate digital transformation plans to create actionable and long-term recovery plans and achieve sustainable success.

Our global research into the current state of digital transformation

The impacts of the COVID-19 pandemic have exposed the challenges and limitations of different sectors, countries and organizations. However, one thing that has become very clear is that our reliance on digital solutions has never been greater – and will certainly not diminish when the outbreak ends.

To better understand how COVID-19 has impacted companies’ digital transformation strategies, in mid-2020 KPMG commissioned Forrester to interview 780 digital transformation strategy leaders in 10 countries across 12 sectors.

Below is a high-level summary of the five key aspects of the survey results.

Top five take-aways:

1.

COVID-19 has changed both the shape and degree of importance of digital transformation in organizational strategies.


Digital transformation has taken on greater urgency as a result of COVID-19:

KPMG!
67 %

of companies have accelerated their digital transformation strategy.

KPMG!
63 %

of companies have increased their digital transformation budget.

Base: 780 professionals involved with digital transformation strategy decisions
Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2020

 

2.

Organizations need to adapt and address the operating model challenges COVID-19 has exposed.


The pandemic has caused leaders to rethink their priorities and realize that the shift to digital is today’s – rather than tomorrow’s – priority.


Top-6 COVID-19 related priorities:

32 % loss of revenue
29 % increased security risks
28 % supply chain delays
27 % development of new cannels
25 % modified service arrangements
24 % increased needs to reduce costs

Base: 780 professionals involved with digital transformation strategy decisions
Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2020

 

3.

COVID-19 has focused minds even more keenly on customers, with a significant majority of respondents saying their organizations are accelerating such initiatives.


Prior to COVID-19, improving the customer experience was by far the leading objective for an organization’s digital transformation strategy. Post COVID-19, it became an even greater emphasis and acceleration on initiatives to help achieve this objective.

Top Digital Transformation initiatives pre COVID-19

  

4.

Organizations are focusing on all capabilities but particularly on driving responsive operations and supply chain, seamless interactions and customer experiences.

Eight capabilities

Note: (a) Base: 1,299 professionals involved with customer-centric strategy decisions.
Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, September 2018.

Building a connected enterprise: top digital transformation priorities.

80% responsive operations & supply chain
75% seamless interactions & commerce
71% experience centricity by design
67% digitally enabled technology architecture
63% aligned and empowered workforce
62% insight driven strategies and actions
50% integrated partner and alliance ecosystem
50% innovative products and services

  

5.

Many organizations are in the process of formulating strategies to transition their business from the COVID-19 pandemic to recovery that focus on the immediate, near-term future.

Strategies to transition business from the COVID-19 pandemic to recovery
KPMG!
62 %

of those surveyed focused on a strategy timeframe of 6 months or less.

Base: 631 professionals involved with digital transformation strategy decisions at organizations with, or working on, a formal COVID-19 business transition strategy
Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2020

To learn more about the survey, read our Thought Leadership paper, Going Digital Faster, which analyzes the results from the survey and addresses why a holistic approach to digital transformation is now more critical than ever before.