In the midst of rapid technological advancements, many businesses find themselves uncertain about the readiness of their systems to undergo digital transformations. A recent study conducted by KPMG revealed that two-thirds of firms are exploring the idea of forming partnerships to navigate through these changes.
The ‘Transforming the Enterprise of the Future’ study by KPMG gathered insights from a global survey of over 480 senior leaders and 1,600 line leaders from companies with an annual revenue of at least $500 million. The findings indicated that while executives anticipate significant technological impacts on their operations, less than one-third feel adequately prepared for these changes.
The study also highlighted that within the past year, 28% of the respondents experienced significant shifts in how technology has influenced their business operations. Looking ahead to the next three years, this figure is expected to grow to 43%. This reflects a growing awareness among businesses of the impending impact of technology, as evidenced by 88% of the respondents concurrently pursuing multiple organizational transformations.
Tash Moore, global transformation leader at KPMG International, shared, “We’re at a real inflection point in the digital revolution. Enterprises can capitalise on this to create and unlock greater value and achieve competitive advantage.” However, when it comes to assessing their technology foundation’s readiness for these changes, only 29% of the respondents felt well-prepared, with a mere 4% describing themselves as “very highly” prepared.
In response to the need to enhance their technological foundations, many businesses are shifting towards collaborative approaches. The study indicated a shift away from the traditional methods of investing in in-house technology development or obtaining licensed technology for adaptation. Instead, an increasing number of companies are seeking strategic partnerships to facilitate their technological transformations. The research highlighted an 11% rise in the number of firms seeking strategic partnerships, reaching 40%, and a more than doubling of firms seeking full partnerships, rising to 28%.
According to Moore, “Transformation is now a continuous journey. Our research underscores the importance of trust in leadership and the strategic use of partnerships in navigating this complex digital landscape. Enterprises that effectively integrate advanced technologies and complement with digital literacy, strong leadership, and sound judgment are well-positioned to thrive.”
The study’s findings shed light on the evolving strategies employed by businesses in response to the challenges and opportunities presented by technological advancements. By embracing collaborative partnerships, companies are aiming to leverage the expertise of external entities to drive successful digital transformations. As we move forward into an increasingly technology-driven era, the role of strategic partnerships is becoming pivotal in ensuring the seamless integration of advanced technologies into business operations.