Technology is a disrupter. It can upend trends at a moment's notice; it changes consumers' desires and expectations; and it transforms business processes for whole enterprises. It’s both exciting and challenging. But the great news is that certain technologies present opportunities to disrupt stagnant balance sheets.
As organisations move out of the shadow of the global financial crisis, many are seizing on the transformational opportunities of disruptive digital technologies to change their processes and enhance the consumer experience. These organisations recognise the power of disruption and the need to adapt in order to avoid a corporate 'Kodak moment'. Kodak famously invented the digital camera but did not develop and market the product out of fear of disrupting its lucrative film business. Sony and Cannon charged ahead while Kodak languished.
KPMG’s Global Technology Innovation Survey 2014 which surveyed 768 technology industry leaders from around the world, identified the key disruptive technologies that will have the greatest impact in driving business transformation for enterprises.
Among the top technologies nominated were:
We see key benefits to both enterprises and consumers that could drive growth for Australia's corporates, if the leadership is willing to invest in the appropriate skills and resources and embrace the advantage that these new technologies can deliver.
"We see key benefits to both enterprises and consumers
that could drive growth for Australia’s corporates, if leadership is willing to invest in the appropriate skills and resources and embrace the advantage that these new technologies can deliver."
Partner in Charge, Digital Consulting Services
Initially seen by many as a cost reduction tool, early adopters of cloud are now demonstrating that it can be also be a critical part of growth through driving significant business process evolution including better processes, operational agility, and faster entry into new markets and geographies.
At an enterprise level, cloud offers the carrot of improved business efficiencies and higher productivity, cost reductions and faster innovation cycles. However, some survey participants also identified increased profitability and market share as key benefits of cloud. Cloud doesn’t come without its challenges though. For enterprises, security, increased technology complexity and risk management are all issues to be overcome.
Mobile is now central to many business strategies, and both consumers and enterprises acknowledge the important role it plays in delivering personalised real-time information and personal productivity. For enterprises, benefits are focused around efficiencies and productivity, faster innovation cycles and enhanced customer loyalty. Major challenges in the mobile space include identity and transparency concerns, problems with local technological infrastructure and consumer expectation of constant enhancement.
Interestingly, the internet of things (IoT) – or machine to machine communication (M2M) – is increasingly top of mind for enterprises and consumers alike. That's not surprising – IoT technology enables objects to be digitised and connected enabling interaction. This creates a huge opportunity for data collection and the creation of a new era of products, processes and devices. According to KPMG's survey, a significant proportion of enterprises (41 percent) cited business efficiencies and productivity as the top benefit IoT technologies will deliver, while around 20 percent identified security and local technology infrastructure respectively as significant challenges.
We're all aware of the potential for big data to transform businesses by providing invaluable insight into consumer behaviour and a better consumer experience. Identifying and understanding existing information assets is a critical issue for CIOs, as is determining if they are they the right assets, and if information is available at the right time in the right place.
While respondents to the KPMG technology survey identified improved efficiencies and productivity and faster innovation cycles, they also raised questions about how they can extract, learn and turn big data into insightful information across multiple platforms? And how do they enable intelligent and immediate analysis of big data to provide the best insights for the CEO and business decisions?
© 2017 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.