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

Tech is poised to reshape the business world by 2024, despite near-term recession concerns and a global talent crunch

TORONTO, November 24, 2022 /CNW/ – Most canada According to a recent Global Technology survey conducted by KPMG International, the largest companies are turning to key emerging technologies to improve their products and services, increase operational agility and efficiency, defend market share and win new business.

Over the next two years, almost all technology leaders (95 percent) will be interviewed at private and public sector organizations Canada plan to invest in Web3, the third iteration of the Internet, the survey says. Approximately 70 percent plan to invest in fifth-generation (5G) wireless technology and edge computing, 67 percent plan to capitalize on quantum computing, and over half (54 percent) plan to invest in the Metaverse in the same timeframe. More than six out of ten companies plan to invest in virtual and augmented reality technologies.

The findings underpin research in KPMG’s recent Global CEO Outlook, in which Canadian CEOs ranked emerging or disruptive technologies as the #2 risk to company growth over the next three years, beating only regulatory concerns.

“The race for transformation has begun,” he says Sanjay PathakPartner and National Leader, Technology Strategy and Digital Transformation Services, KPMG in Canada. “At a time when digital leaders face rising costs, a potential recession and a global talent crisis, they are turning to new technologies to strengthen their organization’s resilience, use data and analytics to improve decision-making and to drive growth.

“While it may seem contradictory to invest in innovation on the precipice of an economic downturn, these technologies make the difference and will separate digital leaders from laggards,” he says. “We are increasingly seeing digital leaders mastering new and emerging technologies, and these new advances will transform the business world for years to come. But as with any transformative change, technology is just a enabler. It must be fully aligned with the business purpose and strategy, and the risks must also be carefully assessed, engineered and mitigated.”

The story goes on

Planned technology investments:

Talent wars abound

Significantly more Canadian companies said they are behind schedule in executing their digital transformation strategies than their global peers, the survey found. Half of the technology leaders in Canada (51 percent) said their programs have been delayed or slowed down despite C-suite support and funding, compared to just 40 percent globally.

This is consistent with previous research by KPMG, which found that many such programs have been put on hold or are about to be put on hold not only to prepare for a potential recession in the near future, but also to deal with employee burnout and shortages of qualified talent stood to be exposed.

Technology leaders also identified the talent shortage as one of two key obstacles preventing their organization from adopting new digital technologies. The other barrier is their organization’s risk aversion or reluctance to abandon existing processes.

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

All respondents to the survey confirmed the positive impact of their digital transformation efforts to date: an increase in profits and performance.

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

“Leaders are looking at technology and digital investments with more care,” says Ms. Penner. “The need for proven ROI and scalable deployment models is paramount for most.”

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

KPMG International surveyed more than 2,200 technology leaders in some of the world’s largest organizations in 15 countries, including 125 in Canada during the second quarter of 2022. Nearly half (48 percent) of respondents are headquartered in the United States. Among Canadian respondents, 17 percent are with organizations that report in between $20 billion and $50 billion in annual gross sales; 10 percent are in organizations with more than $10 billion but less than 20 billion dollars; 26 percent report between $5 billion and 10 billion dollars; and 42 percent have between $1 billion and 5 billion dollars in sales. 65% of Canadian respondents work in organizations with more than 10,000 employees. Over half (54 percent) are public companies, 22 percent are privately held, and the remaining 25 percent are governments or non-profit organizations.

About KPMG in Canada

KPMG LLP, a limited liability partnership, is a full service accounting, tax and advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing and tax services to Canadians, inspiring trust, enabling 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 Canada, looks after private and public clients. KPMG is consequent Rank one of canada Top employer and one of the best employers in the country.

The company was incorporated under the laws of ontario and is a member of KPMG’s global organization of independent member firms affiliated with KPMG International, a private English limited company. Each KPMG company is a separate legal entity and describes itself as such. For more information, see home.kpmg/ca

SOURCE KPMG LLP

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