March 26, 2023

The next generation of successful organisations will be the ones that embrace the potential of digital transformation, or so it has been said with increasing frequency in the last decade. But is the term as useful in understanding the future of organisations as its advocates claim?

While some see digital transformation as a trend that has existed since the 1950s, an alternative view is that today’s digitalisation is a distinct phase because it describes the particular way technology and data now define rather than merely support operations. Electronic transformation, then, is a term that reflects the new operational reality for every organisation.

Interest within digital change has also merged with the need to rebuild organisations after a period of disruption caused by the pandemic, supply chain and employee shortages, and economic uncertainty. However , these problems have also encouraged new thinking and problem solving. Organisations want to invest but without repeating past functional missteps.

Nevertheless, what remains up for debate is how organisations should harness the idea associated with digital modification to make such change possible. Clearly, while every organisation is electronic to a greater or lesser degree, not every company today is using advances in digital technologies as effectively.

How do organisations understand digital alteration?

As KPMG’s Global Tech Report 2022 highlights, digital change for better today will be unfolding against a backdrop of economic and political uncertainty, plus post-pandemic interruption. Customers are harder to find, as are usually the business and technical skills that have powered organisations over recent decades.

Despite these types of concerns, the particular report found that 76% of the organisations plan to adopt digital transformation technologies this kind of as the metaverse, Web3, and humanlike AI chatbots with 72% expecting to invest in emerging fields such as quantum computing.   Most remain upbeat about the particular potential of digital change for their organisation, with almost all saying that it had improved the profitability or operation of their business over the last two years.

“Covid was a massive accelerator with regard to digital modification. The pace of that is not slowing down but the economy is usually, ” observed Adrian Clamp , KPMG UK head of digital transformation during the online webinar “Why becoming a Connected Enterprise goes beyond digital transformation”. “This creates pressure on CIOs to make the right trade-offs. ”

At the same time, addressing risk is an inherent part of making digital alteration work, says Paul Henninger , partner at KMPG and mind of technology consulting.

“There has been a major shift within how we think about cybersecurity. The distributed nature associated with the processing world we’ve created means that a determined attacker only has in order to get lucky once. ”

By being more distributed plus data-driven, electronic transformation produces the sort of risks that will can just be addressed through careful design. “If you possess cybersecurity experts in at the beginning to design systems that’s exactly how you end up ensuring the system is resilient. ”

Digital transformation is often taken to mean that organisations must become a lot more responsive to customers. But the issue of cybersecurity risk underlines that responsiveness must be across the board, including unpredictable events like data breaches, service outages and outbreak disruption.

Companies must do all this whilst finding a way to invest in a new era of digital technologies for example automation, AI, IoT sensors, and augmented reality without hindering the bottom line. And the particular most effective ones are investing in capabilities which span all areas associated with the customer experience to create a connected enterprise.  

To find out more about how companies can achieve their objectives and unlock return on spend for electronic transformation, listen to KPMG’s webinar “ Why being a Connected Business goes past digital change for better ”.

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