How American Companies Are Generating Wealth Through Data

Business and technology strategy are no longer separated. What organizations do to win in the marketplace is nearly always supported by some form of technological investment. And, whereas approximately 70% of IT-enabled transformations failed to meet strategic objectives just a few years ago, nearly half of them now add considerable value and drive actual outcomes.

The 2023 KPMG US Technology Survey Report gives insight into US firms' digital goals and priorities, based on data from 400 enterprise technology leaders.

It explains how purposeful digital transformation can help firms achieve their growth and resilience goals. It also focuses on critical problems in maintaining transformation momentum to support bigger strategic goals. Digital transformation generates results. Most sectors, from boards on down, have a strong strategic focus on increasing organizational performance through technology investment. Organizations have enhanced their transformation skills, and returns are following. Barry Brunsman Principal and Global CIO Center of Excellence leader at KPMG in the United States. Growing faith in the benefits that technology can provid The study indicates confidence in the benefits that technology can provide—and underscores the rush to embrace the latest technologies. As a result, the proportion of organizations having leadership buy-in for new technology has more than tripled, from 10 to 32 percent, despite the fact that 65 percent of US IT executives say they are now expected to do more with less money. In reality, economic difficulties helped reduce US technology leaders' reluctance to adopt innovative tools to further their commercial plans. Most businesses now rely on technology to run their operations, and many believe it will continue to improve at an exponential rate, unleashing capabilities, opportunities, and seemingly unlimited possibilities.

AI, Robots, and Other Opportunities

While IT leaders are optimistic about the potential of these disruptors, they are still in the early phases of integrating them into their operations.

If ROI is the guiding light for selecting new technology bets, artificial intelligence shines the brightest, with 52 percent of respondents ranking it as the most crucial technology for accomplishing their short-term goals. However, robotics and automation were not far behind, with 45 percent and VR/AR at 43 percent. In reality, the data demonstrates that many tactics are being reworked as firms are forced to reexamine their technology foundations and strategies due to rapid improvements. To reach their full potential, firms must increase their IT infrastructure while also improving their data knowledge, processes, and governance. The most significant technology for US corporations to achieve their short-term goals over the next three years Coordination, talents, and additional challenges In our poll, 56% of respondents reported that the returns on their digital transformation efforts exceeded their expectations. These results are frequently linked to how technology leaders handle collaboration, talent, and cultural issues throughout the organization—because the most significant barriers are organizational, not technical. 56% of firms report that their transformation efforts exceeded expectations. The most likely barrier to progress is a lack of collaboration among internal groupings. Almost half of firms (47 percent) reported that their IT function lacked the governance and coordination required to effectively support transformation initiatives, citing communication breakdowns between IT and top business decision makers as a major problem. More than 60% of respondents indicated the technology function has to improve its ability to assist the board in understanding the potential of new technologies, while 68% claimed they are still having difficulty gaining executive support.

Effective teamwork is more than simply a boardroom issue.

Enterprise-wide digital literacy necessitates agile collaboration across business divisions, and 57% of technology leaders believe employee resistance influences their firms' investment decisions in new technologies. Indeed, 41 percent of respondents identified a lack of skills within the business as a major transformation hurdle, while 40 percent mentioned a risk-averse culture. The largest talent deficits are in creativity. Functional silos impede the agility that organizations require to change, which is critical for success in the digital economy. Breaking down barriers, boosting communication, and simplifying coordination allow businesses to shift resources to meet changing priorities while providing better results—faster and more efficiently. Improved governance is critical to the process. It may help create clear objectives for transformation initiatives, target particular KPIs that are linked with strategic goals, identify new sorts of talent and ways of working, and release the agility required to prosper. Good governance helps to address the coordination issue. It also increases client trust while maximizing the benefits of existing technologies. It prepares businesses to undertake the fundamental technological and legislative changes required for wiser investments. It can also extend analytics outside the area of data scientists to provide benefit throughout the organization. Vity, innovationAt KPMG, we think that business transformation is an opportunity too excellent to pass up. Combining the right technologies, people, and processes is critical to preparing your organization for digitization. Building that environment can mean the difference between success and failure in your transformation journey. We can help you focus your business on the customer, optimize functions for a new era, and manage enterprise risk for a safer future. Because when people and technology work together, amazing things happen. Transformation never ends. Neither do we. on, and the ability to instruct others.