A KPMG report surveyed 2,200 global executives to better understand technology trends and challenges facing businesses today.
A new KPMG report finds that more than two-thirds of global enterprises will adopt emerging technologies in areas such as Web3, Metaverse and quantum computing within the next two years . But an ongoing talent shortage could complicate adoption of the technology.
While many businesses around the world face high inflation and economic uncertainty, the KPMG Global Technology Report 2022, released today, finds strong executive interest in investing in new technologies.
In a survey of more than 2,200 tech executives around the world, it found that by 2024, 67% of enterprises will embrace emerging technology areas such as encryption, Metaverse, Web3, NFT, quantum computing, VR/AR, 5G and edge computing .
While nearly all (99%) businesses agree that they have benefited from digital transformation, more than half (58%) say they are “behind plan” when it comes to cybersecurity. However, nine out of 10 businesses say they are "advanced" in adopting cloud systems.
Talent shortage has become a major challenge for businesses worldwide and complicates the adoption of emerging technologies.
Demand for talent consistently outstrips supply in industries such as IT and cybersecurity, and a recent survey by Dell Technologies in Ireland revealed that businesses view talent as their most important asset when it comes to driving digital transformation.
The KPMG report also found that improving customer experience is a top priority for more than half of businesses undergoing digital transformation.
"Customer experience is a huge motivator for businesses to invest in IT and is becoming synonymous with digital transformation," said Barry Brunsman, Global Leader, KPMG International CIO Center of Excellence.
"The foundation of a technology strategy is to create experiences that earn loyalty, secure revenue and encourage high levels of recurring revenue from customers."
Confidence is high, but there are many challenges
Most technology leaders surveyed are confident in what they can achieve through digital transformation and their ability to leverage technology. Two-thirds of respondents believe they are "very" or "very" effective at using technology to advance business strategy.
Sedef Gavaz of the Natural History Museum in the United Kingdom, one of the respondents to the report, said she sees the potential for the Metaverse to "revolutionize" the museum experience.
“Every technology investment needs to be aligned with your strategy and mission, and Metaverse fits perfectly into one of our strategic pillars: reaching and engaging the widest possible audience,” said Gavaz, head of digital products at the museum.
While a lack of talent in areas such as data science and engineering was cited by 44% of respondents as one of the biggest challenges facing businesses, the high cost of adding new systems and talent was the second most common challenge (32%).
This is followed by a lack of skills to implement or fully utilize new systems (29%), sub-optimal data management (28%) and a risk-averse corporate culture that is unwilling to accept change and disruption (24%).
Cybersecurity teams also find it challenging to keep up with the dynamic and ever-changing threat environment, a problem compounded by talent shortages, the report found.
"Companies have to remember that they're not only exposing their business, they're exposing the privacy of their customers," said Phil Fersht, chief executive of analyst firm HFS Research. "If that information is leaked or hacked, you have a repetitive, highly negative impact."