NEW YORK, June 24, 2016 /PRNewswire/ -- The results of
KPMG's 2016 Global Transformation Study point to three common
elements among organizations that are in the process of, or
completed successful business transformations. The study, which
surveyed more than 1,600 executives from multinational companies in
16 countries, found that 96 percent of organizations are in the
midst of business transformation planning or execution.
While more than half (53 percent) of business leaders say they
can realize sustainable value from transformation, gaps still
remain among organizations that struggle to realize optimal value
from transformation initiatives.
"Senior business leaders must improve their organizations'
ability to access deep customer, competitive and operational
insights, to act with agility and embed innovation within their
core business," says Stephen G. Hasty,
Jr., global transformation leader, KPMG. "These are the top
action items for organizations to achieve a higher level of
transformation and have a sustainable impact on their business
performance."
Focus on the customer
The study shows that
organizations are placing an enhanced focus on deeply understanding
customers to convert insights into differentiating innovation in a
timely manner.
"While customer insights inspire meaningful innovation, many
companies are still not truly oriented around their customers'
expectations," says Hasty. "Less than half of companies are placing
strong emphasis on understanding customer demographics and
behaviors, so they may not be truly 'in-touch' with customer needs
when they plan their transformation."
Embed innovation into the business
Business leaders
must also embed continual innovation into the culture and structure
of their organizations in order to build enduring competitive
advantage. To do so, they must have insights into what customers
today and in the future truly value, and must follow a "business
value first" approach to technology. Such an effort calls for
enabling the organization to work smarter and faster so it can
create return on investment even as it continues to
innovate.
The study shows a clear shift among executives toward
prioritizing innovation, demonstrated by 69 percent of survey
respondents saying that their organization has the capabilities to
implement formal innovation processes, management and budgets.
Learn to thrive on change
At the same time, senior
executives realize the need to build agility into their
organizations, so that as the business environments they operate in
shift, their organizations are better able to transform and adapt
to the innovations generated. Still, 37 percent of executives say
that the greatest execution barrier they face in transformation is
underestimating the significance of changes to their organization's
operating model.
"Business transformation can no longer be a 'one and done'
initiative," says Hasty. "Senior executives realize that their
organizations must create mechanisms to continuously evolve and
respond to the dynamic market environment. Unfortunately, these
business leaders are up against serious barriers to reaching goals,
as well as massive disruptions in technology and customer
preferences and demand."
To view the full 2016 Global Transformation Study, and learn
more about how KPMG helps drive the transformational changes
necessary to create higher-performing organizations, please visit
http://kpmginfo.com/transformation/.
Study Methodology
KPMG's 2016 Global Transformation
Study targeted more than 1,600 senior executives from multinational
organizations in 16 key markets (Australia, Belgium, Brazil, Canada, China, France, Germany, India, Italy,
Japan, Mexico, Netherlands, Spain, Switzerland, United
Kingdom, and United
States). The study, conducted between December 2015 and February
2016, included 54% from the ranks of C-level executives,
with the remainder being managing director or above. Executives
were evenly split among all industries.
About KPMG LLP
KPMG LLP, the audit, tax and advisory
firm (www.kpmg.com/us), is the U.S. member firm of KPMG
International Cooperative ("KPMG International"). KPMG
International's member firms have 174,000 professionals, including
more than 9,000 partners, in 155 countries.
Contact:
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Derek
Brown
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KPMG LLP
|
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201-505-6105
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derekbrown@kpmg.com
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SOURCE KPMG LLP