KPMG’s 2016 Global Transformation Study finds 96% of global businesses focused on innovation but achieving desired results is low

Tuesday 31 May 2016

Dubai - MENA Herald: KPMG International released its 2016 Global Transformation Study, which revealed that, while most business leaders understand the importance of investing in continual business transformation, and the need to execute these initiatives with urgency, most organisations struggle to achieve the desired results, and their top executives point to internal weaknesses that hinder their success.
The study, which surveyed more than 1,600 executives from multinational companies in 16 countries, found that 96 percent of organisations are in the midst of business transformation planning or execution, with 66 percent of them having started or completed a transformation program in the past two years.
At the same time, less than half (47 percent) of business leaders say they can realise sustainable value from transformation.
“Business transformation can no longer be a ‘one and done’ initiative,” says Stephen G. Hasty, Jr., Global Transformation Leader, KPMG International. “Top executives realise that their organisations must create mechanisms to continuously evolve and respond to their external 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.”
Transformation results stem from customer insights, innovation and organisational agility.
Many of these concerns are rooted in organisations’ failure to deeply understand customers or convert those 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.
Farhan Syed, partner KPMG Lower Gulf said: “The findings of the KPMG Global Transformation Study indicate that organisations across the globe need to constantly innovate to stay ahead in business. As the UAE looks towards a new era of economic diversification, innovation is a key strategy driving the national agenda.
“But alongside this broader vision, the Government recognises that attracting the right human capital, customer satisfaction and technological innovation has become the benchmark for successful businesses and it has been making significant investments to collectively grow these functions.”
The survey findings also highlight that successful transformation may require fundamental business model, cultural and operational change. Innovation simply can’t be an afterthought.

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