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Reframe transformation to unlock growth potential

Improving digital agility is essential for meeting customer demands, staying relevant, and delivering sustainable growth.

Transformation that makes a world of difference

These days, the idea of rounding up the usual C-suite leaders, poring through budgets and forecasts for a few months, and then locking in the three-year business plan…well, it feels downright quaint. Like a black-and-white movie from a bygone era.

But in today’s technicolor business world, growth means always being prepared for turbulence, whether the known issues of today—sticky inflation, ongoing labor challenges, and cost pressures on seemingly all fronts—or the new “unknowns” that surely lie ahead.

Navigating that turbulence to deliver sustainable growth today requires a new level of digital agility and resilience across the enterprise, according to the business leaders we surveyed for “Racing to tomorrow,” a report that looks at how companies are reframing their digital transformation goals amid tumultuous times.

Digital or bust

For our report, we spoke with more than 100 US-based digital transformation leaders to better understand how these times of unprecedented change have prompted them to rethink their strategies and the future of work.

Three overarching themes stood out from our analysis:

1

Creating a more agile organization through digital transformation

2

Focusing on customer centricity to meet customers where they are

3

Connecting all parts of the organization to stay vigilant on market relevance and growth.

To deliver results in these areas, becoming “more digital” can’t simply be a vague goal: Companies must rapidly and tangibly increase their digital acumen, our survey respondents said. That digital push can be the north star for an increasingly connected organization that is more prepared to move quickly and respond to everything from changing customer tastes, to macroeconomic shocks, to that next inevitable “unknown” ahead.

Above all, the experts we spoke with emphasized the need to put digital innovation first to meet their growth goals. More than half (56 percent) said their organizations were increasing their digital transformation budgets, highlighting the importance of remaining flexible in a fast-changing landscape.

Digital innovation is also essential for companies trying to stay on top of evolving customer expectations. More customers are looking for digital service options that still foster human connection, and companies are racing to adapt to the power of increasingly digital-savvy consumers. Indeed, 78 percent of the leaders we spoke with said their organization will make customer-centric strategy a top priority as they strive to improve customer interactions and create more personalized experiences.

Businesses today are tasked with winning over a customer base that is more informed, more attuned to the world around them, and more accustomed to personalized service through their preferred channels, than at any time in history.

Rick Rose

US Lead for Connected Enterprise in the Commercial Sector

Creating a connected workplace

Customers are ready to embrace digital operations. But are organizations prepared to invest in a technology-forward, data-driven enterprise?

It might seem like a tall order, but leaders who can rise to the challenge and future-proof their businesses will reap the benefits, which include increased customer satisfaction, new revenue streams, brand loyalty, and fostering better relationships among all stakeholders.

This may mean reimagining many legacy “we always did it that way” business processes and streamlining operations to develop new channels to serve customers. In fact, the executives we spoke with said that increasing their overall business and digital agility to better serve the customer was one of their top priorities.

Many of the digital leaders we spoke with were focused on creating customer-first systems centered around digital operating models. For example:

60%

Accelerating the creation of digital customer experiences

55%

Building digital platforms for customer-facing systems

49%

Seeking a customer-centric organizational structure

And the respondents also expect that this investment and focus on all things digital will deliver bottom-line results as well. In fact, the top-ranked overall priorities from the survey were increasing revenue and enhancing cybersecurity—both ranked at 75 percent—and each of which is front of mind for the C-suite as a whole these days.

Investing in long-term engagement

As the last few years have demonstrated, rapid change is not an aberration. Increasingly, it’s something all organizations must plan for—and especially as company leaders remain fully committed to growth, regardless of whatever new surprises lie ahead. Meaningful digital transformation can create a more nimble organization that improves connections with consumers and other stakeholders, powers more informed and timely decisions, and fosters sustainable growth.

And, done right, transformation is never done. Many of the executives we spoke with cited the importance of using technology and innovation to create a long-term transformation strategy that engages all stakeholders—customers and employees so that everyone is ready for whatever comes next.

Explore more insights and opportunities to harness data and analytics:

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Meet our team

Image of Jeanne Johnson
Jeanne Johnson
KPMG Connected Enterprise Leader, Principal, Advisory, KPMG US
Image of Rick Rose
Rick Rose
KPMG Connected Enterprise Leader, Commercial, Principal, Advisory, KPMG US

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