Canadian technology leaders plan to invest heavily in major emerging technologies: KPMG

Technology is poised to reshape business by 2024 despite near-term recession concerns and a global talent crunch

TORONTO, November 24, 2022 /CNW/ – Most of Canada’s The largest organizations are turning to major emerging technologies to improve their products and services, drive operational agility and efficiency, defend market share and win new business, according to a recent Global Technology survey by KPMG International.

KPMG Logo (CNW Group/KPMG LLP)

KPMG Logo (CNW Group/KPMG LLP)

In the next two years, almost all technology leaders (95 percent) will join private and public sector organizations Canada plan to invest in Web3, the third iteration of the Internet, the survey found. About 70 percent plan to invest in fifth-generation wireless technology (5G) and edge computing, 67 percent plan to capitalize on quantum computing and over half (54 percent) plan to invest in the metaverse over the same period. Over six in 10 plan to invest in virtual and augmented reality technologies.

The findings underscore research in KPMG’s recent Global CEO Outlook, in which Canadian chief executive officers ranked emerging or disruptive technologies as the No. 2 risk to companies’ growth over the next three years, only after regulatory concerns.

“The race to transform is on,” he says Sanjay PathakPartner and National Leader, Technology Strategy and Digital Transformation Services, KPMG and Canada. “At a time when digital leaders are facing rising costs, a potential recession and a global talent crisis, they are turning to emerging technologies to build business resilience, harness data and analytics to improve decision-making and drive growth .

“While it may seem counterintuitive to invest in innovation at the bottom of an economic downturn, these technologies are differentiators and will separate digital leaders from laggards,” he says. “Increasingly, we are seeing digital leaders become proficient in new and emerging technologies and these new advances will reshape the business world in the coming years. But as with any transformative change, technology is only an enabler. It must be entirely up to the are business aligned. Purpose and strategy and the risks must also be carefully assessed, mapped and mitigated.”

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Planned Technology Investments:

5g of

Edge Computing

quantum physics
Computing time

VR/AR

web3*

metaverse*

Canada

global

Canada

global

Canada

global

Canada

global

Canada

global

Canada

global

Have already invested

4%

6%

6%

5%

4%

5%

2%

1%

1%

1%

Plan to invest in the next 6 months / currently evaluate

14%

8%

10%

9%

10%

8%

2%

1%

Plan to invest in the next 6 months to 1 year

21%

24%

22%

23%

23%

24%

18%

19%

12%

16%

13%

12%

Plan to invest in 1-2 years

35%

33%

37%

34%

34%

35%

42%

41%

44%

43%

41%

43%

Plan to invest in the next 3-5 years

26%

29%

24%

28%

28%

27%

38%

38%

39%

37%

42%

40%

* The remaining percentage have no plans to further invest or explore.

Talent Wars Abound

Significantly more Canadian organizations said they are behind schedule in implementing their digital transformation strategies than their global peers, the survey showed. Half of technology leaders and Canada (51 percent) said their programs were delayed or slowed despite C-suite support and funding, compared to only 40 percent globally.

This is in line with previous KPMG research which found that many such programs have been, or are about to be, stopped not only to prepare for a short-term potential recession, but also to deal with employee burnout and the lack of qualified talent.

Technology leaders also identified the talent shortage as one of the top two barriers preventing their organization from adopting new digital technologies. The other barrier is the aversion of their organization towards risk or the reluctance to let existing procedures go.

“In a downturn, companies that typically come out on top are those that keep their investment focus on critical business priorities, build use cases for disruptive technologies, and ensure they develop the required capabilities either internally or by building a strong ecosystem of external partners, ” says Kathy PennerPartner and National Leader, Technology Enterprise Solutions, KPMG in Canada. “So when there’s a boom, they’re poised to take advantage of those investments and drive outsized growth.”

All respondents to the survey recognized the positive impact of their digital transformation efforts so far: An increase in profits and performance.

Over the past two years, a quarter (26 percent vs. 38 percent globally) reported profits increased between 6-10 percent as a direct result of their transformation journey. Another 19 percent (20 percent worldwide) experienced an 11 percent or more increase in profitability, and over half (54 percent vs. 42 percent worldwide) increased profits by 1-5 percent.

“Leaders are looking at technology and digital investments with increased scrutiny,” says Ms. Penner. “The need for demonstrable return on investment and scalable delivery models are top of mind for most.”

Discover additional insights related to cloud, enterprise technology, and cybersecurity here.

KPMG International surveyed more than 2,200 technology leaders at some of the world’s largest organizations in 15 countries, including 125 and Canada during the second quarter of 2022. Nearly half (48 percent) of respondents are headquartered in the U.S. Among Canadian respondents, 17 percent are with organizations that are between US $ 20 billion in the US$ 50 billion and annual gross income; 10 percent are with organizations with more than US $ 10 billion but less than 20 billion dollars; 26 percent report between US $ 5 billion in the 10 billion dollars; and 42 percent have between US $ 1 billion in the 5 billion dollars in revenue. Sixty-five percent of Canadian respondents work at organizations with more than 10,000 employees. More than half (54 percent) are public companies, 22 percent are private, and the remaining 25 percent are governments or non-profit organizations.

About KPMG and Canada

KPMG LLP, a limited liability partnership, is a full-service audit, tax and consulting firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change and driving innovation. Guided by our Core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private and public sector clients. KPMG is consistently classified one of Canada’s Top employers and one of the best places to work in the country.

The company is under the laws of Ontario and is a member of the KPMG global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see home.kpmg/ca

SOURCE KPMG LLP

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