A recent survey among firms in Poland by KPMG in Poland, in partnership with Microsoft, reveals that one-third of companies in Poland plan to increase their investments in digital transformation over the next year. Additionally, 18% of these companies intend to hire new employees to support their digitization efforts. The third edition of the KPMG Business Digital Transformation Monitor indicates a rise in the main index from 4.4 to 5.1 points on a ten-point scale, with the financial sector achieving the highest score of 6.2 points. Notably, 28% of organizations are already leveraging AI tools, and another 30% aim to adopt these solutions within the next year. However, 65% of companies are not yet measuring the effectiveness of their AI tools.
Digital Transformation Index Surpasses 5 Points
This year marks the first time the Business Digital Transformation Monitor index has exceeded 5 points, reflecting a positive shift in the approach of Polish companies towards digital transformation. The index rose to 5.1 points in 2024, up from 4.4 points in 2023.
The potential for transformation (5.6 points) ranked the highest, followed by technology implementation (5.4 points), cyber security and risk (4.9 points), and the list closes with the digitization strategy with a score of 4.3 points. Each of the areas in question recorded an improvement over the previous year and compared to the first edition of the survey conducted in 2022. Considering individual sectors, the financial sector leads with a score of 6.2 points, followed by the technology sector at 6 points, and the automotive sector at 5.6 points. Conversely, the construction and real estate sector scored the lowest at 4.2 points.
Two years after the release of the first "Business Digital Transformation Monitor" we are now at a pivotal juncture. This is both promising and challenging news. On the positive side, Polish businesses are advancing in the right direction. They have surpassed the midpoint on a ten-point scale, with a growing number of companies establishing or planning to develop formal digital strategy documents. Additionally, more businesses are increasing their digital transformation budgets and hiring new talent to support these initiatives. Artificial intelligence is gaining a foothold in Polish enterprises, and cybersecurity measures are being implemented more frequently in practice rather than merely in theory. Notably, the financial sector leads with the highest index on the "Business Digital Transformation Monitor" excelling in cybersecurity, digital transformation investments, and employee competency development. However, businesses operating in Poland are still at the early stages and lag behind European and global leaders.
33% of Polish Companies Plan to Increase Digital Transformation Spending
This year’s survey reveals a significant rise in the percentage of companies intending to boost their digital transformation investments. Currently, 33% of Polish companies plan to increase funding in this area, marking a 19-percentage point jump from 2023, when economic challenges led to reduced investments. Among these organizations, 11% are planning substantial increases. Furthermore, there is a notable uptick in hiring plans for digital transformation roles, with 18% of companies aiming to expand their workforce, compared to just 7% in 2023.
The survey also shows a 6-percentage point increase in companies with a formal digital transformation strategy, now at 27%, with another 20% planning to develop one within the next year. Companies with a digital strategy achieved a significantly higher "Business Digital Transformation Monitor" score, averaging 6.1 points, 1.4 points above those without such an instrument.
While progress is evident in Poland, there remains a substantial gap in formal digital strategies, especially among small and medium-sized enterprises. Currently, 42% of large companies, 27% of medium-sized companies, and only 13% of small organizations have formal digital transformation documents. As the development of AI and digital integration becomes crucial, it’s imperative for businesses to incorporate digital transformation into their strategies to drive future growth and revenue. The financial sector’s leadership in formalizing digital transformation strategies is particularly notable in this rapidly evolving business landscape. In today’s dynamic environment, agility is essential. Companies, especially those in regulated sectors, must be prepared to adapt swiftly to changing market conditions.
Adoption of Mobile Solutions and Emerging Technologies
Polish companies are increasingly adopting mobile solutions, with 67% already implementing them and another 36% planning to do so within the next 12 months. The technology sector leads in mobile solution utilization. Computer-aided decision-making is also widely used, with 60% of companies employing this technology, followed by automation and robotics at 48%.
ESG Reporting Practices
Regarding ESG reporting, 3% of companies do not use any tools or technology, while the majority (92%) rely on spreadsheets. Additionally, 51% use data management systems, 36% use analytical and visualization tools, and 22% use specialized ESG software. Despite these tools, 10% of respondents see no benefit in using technology for ESG reporting. The most commonly cited benefits are improved data quality (62%), increased reporting efficiency (61%), and minimized risk of errors (58%).
Widespread Adoption of Cloud Solutions
Cloud solutions continue to gain traction, with 71% of companies migrating applications and data to the cloud. The Software as a Service (SaaS) model is the most popular, used by 43% of respondents, followed by private cloud implementations at 39%. The KPMG in Poland survey predicts that within three years, 80% of enterprises will primarily use private cloud solutions. Despite the growing familiarity with cloud services, concerns remain, particularly around information security, cited by 79% of respondents.
Increasing Role of Artificial Intelligence
The adoption of Artificial Intelligence in Polish companies is expanding rapidly. This year, 28% of companies reported using AI tools, a 13-percentage point increase from last year. Among those not yet utilizing AI, 30% plan to do so within a year. The automotive (47%) and financial (40%) sectors lead in AI sophistication. However, 65% of companies using AI do not measure its effectiveness. Of those that do, none reported the AI tools as ineffective.
Popularity of IT Systems
ERP systems are the most popular IT solutions this year, implemented by 38% of organizations, with another 11% in the process of implementation. CRM systems, last year’s leader, remain widely used, with over a third of companies employing them and 12% currently implementing them. ERM systems, used by 22% of respondents, are the least popular. CRM systems are seen as the most promising, with 20% of companies planning to adopt them within the next year.
In the dynamic realm of technology, while cloud solutions are still seen as relatively new, it is AI that dominates the conversation. The increase in interest in Artificial Intelligence as a business tool is noticeable, highlighting the need to use this technology to improve the operational and strategic efficiency of businesses. However, the key to success is awareness, proper management, and monitoring of the effectiveness of implemented solutions, which will allow companies to effectively transform their operations and stay ahead of the competition in the digital age.
Cybersecurity Management
The survey shows that 72% of companies have formalized cybersecurity policies and procedures in place, a 12-percentage point increase from the previous year. The financial and automotive sectors, along with the life sciences industry, lead in this area. Despite these efforts, 57% of respondents feel their companies are very well or well protected against cyber threats, while 31% consider their security to be moderate. Over a quarter of respondents plan to significantly increase their cybersecurity spending in the coming year, doubling the percentage from 2023.
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