Transforming IT to address changing business priorities

Businesses recovering from COVID-19 along a protracted path, with reserves of capital to transform operating models, can emerge stronger.

Barry Brunsman

Barry Brunsman

Principal, CIO Advisory, KPMG US

+1 612-232-0072

Is the viability of your organization threatened unless you fundamentally shift your business model? Is your tech stack causing delays or challenges in adapting to the changing market? Do you need to adjust your service model and ways of working to respond to changing consumer preferences?

If yes, then your business may be in what we call the Transform to Re-emerge pattern.  Explore other patterns for IT in the new reality here.

Transform to Re-emerge companies should aim to be more flexible, digitally native and experience-centric  

For the majority of business, business transformation has accelerated by many months, if not years. To emerge stronger and more in line with customer expectations, businesses in a Transform to Re-emerge pattern will recover along a protracted path, requiring reserves of capital and intense focus to transform business and technology operating models.

Transform to Re-emerge companies need a significant investment in enabling technologies such as AI, payments, integrated platforms, and automation. To enable this, a CIO within this quadrant needs to shift to a modern digital backbone to mature their customer channels, supply chain and mid-office systems by paying off technical debt. 

KPMG’s Cloud Transformation, Modern Infrastructure & Operations, and Powered IT capabilities are a suite of innovative tech-enabled solutions, purpose-built to accelerate digital maturity.

Watch our video to learn about IT's role in adjusting to new business models.

Video companion text

Transforming IT to address changing business priorities

Steve Bates, Principal, Global Leader, KPMG’s CIO Center of Excellence

For many organizations, the road to the new reality will be a prolonged journey requiring reserves of capital and a committed focus to transform operating models to emerge stronger and more in line with changed customer priorities.

For these companies, COVID-19 has changed the relationship between the company’s products and services and the customer. Frequently, there is a dependency on a frictionless supply chain, a growing inter-dependency between operations technology (OT) and IT, and a redefinition of expectations in how the customer will engage, buy and consume their products and services.

As any veteran technology executive can attest, shifting to a new IT operating model is no small task in the best of times. Layering on the demands of running IT in a dramatically changed world makes it seem virtually impossible. However, to re-emerge and thrive in the new reality, companies must commit to transforming now or risk their viability.

KPMG’s pathfinder solution is designed to help you determine where to start, what to prioritize and link those initiatives to the most critical business outcomes. Pathfinder allows you to tune your IT transformation program to the specific elements of the IT operating model that will deliver material gains to the organization’s business drivers. When speed matters most, resist boiling the ocean. Pathfinder eliminates the noise and allows you to focus on results that matter.

Transform to re-emerge companies need a significant investment in enabling technologies such as AI, payments, integrated platforms, and automation. To enable this, a CIO within this quadrant needs to shift to a modern digital backbone to modernize their customer channels, supply chain and mid-office systems by paying off technical debt.  KPMG’s cloud transformation and modern infrastructure & operations capabilities are a suite of innovative tech-enabled solutions, purpose built to accelerate digital maturity.

Our research finds that while over 80% of companies are adopting cloud at enterprise scale, the effectiveness of their execution is hindered by their ability to optimize, scale and operate in a hybrid environment. KPMG recognizes that most organizations will be living in a complex, hybrid multi-cloud model for the foreseeable future. There a real challenges in operating in a hybrid model at scale from event management to cost modeling, support models to data protection and integration to contracting.

To address these challenges, our solutions are targeted at making your strategy—reality—with features like cloud impact modeling, resilient agility, workload analysis, network and datacenter architecture and integration, cloud security and compliance, and AI-powered automation and operational intelligence.  Partnered with every major hyper-scale provider, KPMG bridges the gap beyond point solutions to enable you to be “cloud smart” – operating in a hybrid multi-cloud environment.

While laying down a modern digital backbone is job one, IT transformation does not stop there. Delivering service operations that are cost-effective, frictionless, and digital-native is essential to step into a new reality business model. Too many organizations are chained to highly customized or legacy IT ops tools, making it impossible to embrace modern delivery methods like CICD and DevSecOps.

Enter KPMG Powered IT. Built upon ServiceNow, the class-leading IT service management platform, KPMG Powered IT is much more than just a cloud-based technology package. We’ve leveraged our global IT delivery and transformation best practices to pre-build core IT service and business management processes. This has resulted in the creation of a complete "enterprise ready" solution founded on our Powered Target Operating Model, which includes a library of pre-engineered user stories, best practice delivery model templates, processing frameworks, integrations, training materials, reports and delivery accelerators. With KPMG, you’ll get a fully configured solution to fit your organization delivered in a fraction of the time.

Transforming to re-emerge requires a balance of focus, speed, and rapid maturation. The remit could not be clearer: adapt now as there is no going back. KPMG is the partner you can trust to help design, structure and execute your IT transformation strategy. We hope you’ll let us help you on your journey. Interested in exploring how your organization can succeed in today’s new reality? Let’s talk…

Benefits of IT transformation for Transform to Re-Emerge organizations

A rapid pivot to a new operating model is no simple task, however it is essential for companies seeking to compete and thrive in the new reality. Deploying a modern architecture, tech stack, and using low-code platforms are important levers for quickly connecting the front, middle and back offices. The benefits are many:

  • increased flexibility, speed, and resilience through cloud-first and digitally-native design
  • balanced investment in “good” variable costs and increased performance
  • streamlined service delivery mode with focus on location, talent, and outsourcing strategy
  • reduced technical debt through streamlining and platforming application portfolios using low code
  • an aligned workforce possessing the skills, competencies and ways of working required for going forward
  • increased impact on efficiency and top- and bottom-line growth through automation and analytics
  • optimized team structure balanced between business and technology product alignment.