KPMG International has unveiled a new report titled “KPMG global tech report: Technology Insights” that states how the digital transformation journey is an important strategic consideration for all sectors, none more so than technology. This means the technology sector has to do two things simultaneously:
lead by example and rethink its own strategies.
The report draws insights from a survey of 2,450 executives, including 490 technology leaders, from across 26 countries. It elucidates on how the technology sector’s position ahead of other sectors can be attributed only to its formula for success with much of the sector’s accomplishments being a result of discipline and targeted investments. Through strategic spending decisions, such as the prioritization of AI and environmental, social and governance (ESG) activities, the industry has become skilled at protecting its transformation progress from volatility.
It mentions how the technology sector is standing strong against headwinds, but higher expectations for the sector mean that it is required to respond with clarity and strategic investments.
Atul Gupta, Partner and Head of Digital Trust and Cyber Security Services, KPMG in India said – Prioritizing trust and security during the initial phase of designing of solutions is essential. With technology rapidly evolving, designing and building solutions in a responsible way is now more important than ever. It can also help minimize the risk of data breaches and the need for costly retrofitting of security fixes. Businesses should look at cyber security holistically, to navigate these challenges and enhance trust across various stakeholders that could be a competitive advantage”.
Here are key highlights from the report :
- The technology sector is targeting profitability– This year’s survey reveals an increase in the number of technology professionals who say that technology has directly improved their organization’s profitability over the past 24 months
- Some of the most notable growth in profitability, with increases of 10 percentage points or more, has resulted from efforts in AI, data and analytics, everything as- a-service (XaaS), cyber security and modern delivery
- Threequarters of tech executives (76 per cent) say their total cost of ownership and cost–benefit forecasts are usually accurate. Roughly the same proportion say they run calculations to forecast the potential value of a technology before they invest.
- ESG goals are a key focus for technology sector’s digital investments-Today’s technology organizations are recognizing the importance of using tech for good.
- About three-quarters of tech executives (73 per cent) say their technology investments directly target their sustainability and social responsibility goals
- The good news is that KPMG research confirms that technology organizations are taking their employees’ opinions seriously, with technology being one of the sectors most likely to prioritize tech investments based on employee feedback (5 percentage points above the global average)
- ESG is about the future of the industry from a people perspective. That’s why technology organizations must focus on protecting people’s data and having the processes and controls in place to build consumer trust as part of their formulas to getting ESG right.
- Technology firms plan to keep a democratized approach with AI experiments- Most sectors are working toward a centralized approach to AI implementation. But the technology sector plans to continue developing AI governance policies and experimentation practices in a democratized way as it builds more experience in this rapidly developing area with 36 per cent technology executives saying so.
- The report also states how successful AI implementation will require the technology sector to take a systemic approach that is based on cross-functional effort. Be it building strategic frameworks to upskilling teams and identifying risks, technology is uniquely positioned to lead the way across this newfrontier with confidence.
