Investments in new technologies are increasing the profitability and performance of many companies around the world. The key is to link these innovations with other strategic and commercial goals. This is shown in the Global Tech Report 2023, , for which KPMG surveyed more than 2,100 digital leaders. They belong to companies that have annual sales of more than 100 million US dollars, come from 16 different countries and belong to nine different industries.
In the report, 66 per cent of respondents say they are using new technologies very or extremely effectively to further their business goals. Digital transformation has significantly facilitated business development and the implementation of innovations, while at the same time increasing employee productivity.
Artificial intelligence and machine learning offer further potential
This development has not yet reached its peak. The executives surveyed expect that intensive use of new technologies will increase profitability even further. Therefore, many want to continue to rely on ever new investments in this area in the future. According to the report, this includes above all the areas of artificial intelligence and machine learning.
According to the report, digitalisation also helps to keep an eye on the needs of customers. They have increasingly high expectations of data and cyber security. More than half of the respondents say that this clearly influences their strategic priorities. More than two-thirds also say that new technologies help to improve customer loyalty.
When it comes to ESG, many of the executives surveyed also focus on digitalisation. This relates above all to the aspect of transparency. About half state that technologies will be specifically developed further in the coming years in order to be able to better implement ESG goals.
Corporate culture and long-term contracts as a challenge
Despite great optimism regarding new technologies, many of the respondents also point to challenges. Some have the impression that their companies are not yet ready to exploit the full potential of digitalisation. Almost half complain about a lack of coordination and support from the technology department. More than a third even describe their corporate culture as risk-averse in this respect. Just as many assume that there is also a lack of the necessary skills.
Another obstacle for more than half of the respondents is long-term contracts with suppliers. These limit the flexibility of the companies, also with regard to the establishment of new technologies.
As a goal for the future, 90 per cent of the executives surveyed want to better communicate the potential of digitalisation to their board of directors. This includes, among other things, increasing their confidence in the security, data protection and resilience of the new technologies.
