disruptive technologies barometer: technology sector
TRANSCRIPT
The disruptors are the disruptedKPMG International —November 2016
Disruptive technologies barometer: technology sector
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As agents of change, technology companies have always been at the forefront of disruption.
3
Today, an ever-increasing range of emerging technologies are disrupting the sector with exponential speed.
© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
4© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
KPMG International commissioned Forrester Consulting to conduct a survey of technology decision makers to understand how they are prioritizing and investing in disruptive technologies and found the following insights...
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Many technology leaders express optimism about disruptive technologies
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Disruption has a positive sidesay they’ve seen a positive impact on both their organizations and their industry
are excited about the ability to enter new markets
see opportunities to develop new monetization models
67%
51%
46%
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Technology leaders see considerable opportunity, but they have concerns about disruptive technologies.
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believe their companies are “very prepared” in their strategic vision
feel they have a strong knowledge of available
technology solutions
Less than 1/3 of tech leaders…
32%
31%
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So how can business leaders make the best bets when investing in disruptive technologies?
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The tech sector is investing in a range of disruptive technologies to increase operational and customer effectiveness
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Disruptive technologies can be applied to two different areas of businessTechnologies that attract, serve, and retain customers
Customers
Technologies that drive operational excellence, productivity, and agility
Operations
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They are transforming business models and the customer experience 38%47%39%
IoT is the leader in developing new products and services
D&A helps tech firms market to customers more effectively
Digital payments and currency is
being used to monetize products and services more effectively
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Three biggest aids to productivity
48%
49%
48%
… and improving operations models
IoT
D&A
Robotics
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Most are investing in a number of different technologies
To increase productivity (36%)
To improve the quality of products and services (41%)
Base: 580 business and IT decision-makers at technology companiesSource: A commissioned study conducted by Forrester Consulting on behalf of KPMG, January 2016
Where are tech firms investing?
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IoT tops the list of investments, followed by cloud and D&A .
61%
60%60
%IoT
Cloud
D&A
Top investments
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Are tech firms getting value from their investments in disruptive technologies?
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Based on impact and investment, disruptive technologies fall into 5 stagesKPMG framework: Disruptive technology value map(Investment versus impact model)
Table stakesMaturing
Sunrise/sunsetStrategic
Nascent
TechnologiesTechnologiesTechnologiesTechnologiesTechnologies
D&ACloudMobile
Social media
Internet of thingsMarketing platforms
Wearable devices Virtual/augmented realityRobotics3D printing
On-demand market based platformsDigital payments & currencyArtificial intelligence & cognitive computing
Low
Impact
Investment Impact
Investment Impact
Investment Impact
Investment ImpactLow
Medium
MediumMedium
High
HighHigh
High
Low
Base: 580 business and IT decision-makers at technology companiesSource: A commissioned study conducted by Forrester Consulting on behalf of KPMG, January 2016
Investment
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Those that got it right…
Getting investment timing right
saw the new technology trend earlier than their competitors
invested earlier than their peers
Base: 580 business and IT decision-makers at technology companiesSource: A commissioned study conducted by Forrester Consulting on behalf of KPMG, January 2016
Whether tech businesses want to be first movers or fast followers, they need, above all, to be agile, to ensure they don’t get left behind
54%
46%
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Only 54 percent say their C-suite keeps a close
eye on disruption
However, tech firms need to reshape their organizations.
Disruptive technologies are not a high enough priority on tech industry leaders’ agendas
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Successfully navigating disruption: five key takeawaysUnderstand the organizational impact of disruptive technologies01
Align investment in disruption with corporate strategy02
Strike the right balance between investing in today’s and tomorrow’s technologies03
Demonstrate investment agility04
Set the organization on the path to transformation05
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