KPMG International Limited, a multinational professional services network, released three global tech reports, delivering insights for energy leaders, industrial manufacturers, and the technology sector in general. These reports identify key themes and provide an action plan for each sector.
The global tech reports from Klynveld Peat Marwick Goerdeler or KPMG say that while the technology sector has achieved major accomplishments due to discipline and targeted investments through strategic spending decisions, it needs to lead by example and rethink its strategies.
"As tech innovation offers almost endless potential, many tech leaders are afraid of falling behind. This can lead to the temptation to make hurried decisions, which may prove misguided, risky, and expensive," the report said.
The energy insights highlight various aspects of the sector, from mitigating risks in renewable integration to securing operations against escalating cyber threats. Industrial manufacturing insights emphasise that firms in this space are at the forefront of the transformation and have the highest levels of digital maturity among technology categories.
KPMG Global Tech Report: Technology Insights
According to KPMG's Technology Insights, most tech leaders accurately predict technology costs and benefits before investing. Companies in the tech sector often make technology investments based on employee feedback, aiming to achieve sustainability and social goals like reducing environmental impact and improving community well-being.
Unlike many industries that are moving toward a centralised approach to AI implementation, the tech sector prefers a more open and flexible approach. They want to continue developing rules and guidelines for AI while allowing more people within the organisation to experiment with it.
Key recommendations from KPMG for the technology sector:
- Focus on trust and security from the start of designing solutions by involving cyber security experts early to protect reputation and reduce risks
- Use strategies that address environmental and social risks while taking advantage of business opportunities to give ESG a competitive edge
- Ensure departments collaborate on AI projects and clearly communicate their value, focusing on delivering results, building trust, scaling, and transforming effectively
- Stay disciplined and strategic to navigate new technologies like generative AI and tackle environmental and economic challenges
KPMG Global Tech Report: Energy Insights
According to KPMG's Energy Insights, energy executives are very confident in their tech investments, compared to leaders in other industries. They're ahead in using AI to improve their operations and get more value from their business. However, they still face challenges with managing data, making it hard to measure the return on their tech investments.
On the plus side, they're doing great with cybersecurity, with many seeing big financial benefits, some over 16 per cent. This means that energy companies are resilient and future-focused, even if they struggle with data management. To navigate a turbulent landscape, KPMG recommends energy executives to:
- Build resilience through targeted technology investment and innovation
- Build a strong data backbone
- Mitigate technical debt
- Leverage AI’s transformative capabilities across operations and climate initiatives
- Enhance partnerships and ecosystem collaboration
- Focus on workforce enablement for AI adoption
- Scale pilots responsibly
KPMG Global Tech Report: Industrial Manufacturing Insights
According to KPMG's Industrial Manufacturing Insights, the industry is leading the way in using advanced technology. Among eight sectors surveyed, they are the most advanced in planning and using tech, with 76 per cent of people in manufacturing showing eagerness to use cutting-edge technology.
In terms of AI, 34 per cent of manufacturing companies are already seeing good returns on their investments, the report said, adding that there are still some challenges. The manufacturing sector also excels in managing and using data. The report says that manufacturing is ahead in tech and data management, especially in AI, but there's still room for improvement.
Key recommendations from KPMG:
- Assess and address shortcomings in data availability, data quality and data integration
- Identify and pursue early use cases that can have a direct impact on revenue, costs, risk or other important outcomes
- Upskill the existing workforce and create a data-centric culture
- Address talent gaps by bringing in new talent while maximizing the existing workforce
- Develop a general AI strategy, including conventional and leading-edge disciplines, that weighs costs against revenue opportunities and risks
