By Zachary Ochieng
As organizations race to innovate, the temptation to rush into new technology investments can be overwhelming. Yet, as this year’s KPMG Global Tech Report, titled “Beyond the Hype: Balancing Speed, Security, and Value,” reveals, tech leaders are increasingly aware of the potential pitfalls of hurried decisions. Drawing insights from 2,450 tech professionals across 26 countries and eight industries, this report highlights how businesses navigate the pressures of rapid change without compromising security, governance, or long-term value.
With digital transformation advancing at breakneck speed, many executives feel a strong “fear of missing out” [FOMO] on the latest tech trends. However, according to Guy Holland, KPMG’s Global Leader for CIO Centre of Excellence, caution is crucial. “There’s a natural tendency to jump on the bandwagon,” Holland states, “but tech leaders who take a measured approach to innovation not only reduce risk but also position their organizations to extract sustainable value.”
This drive for strategic balance is underscored by the report’s findings that while 82% of organizations admit to monitoring their competitors’ tech choices, a greater number are relying on primary evidence. “Our research shows that execs are increasingly looking beyond peer pressure,” Holland says, noting a 15-point increase in executives drawing on in-house trials and third-party guidance as investment drivers.
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The Data-Driven Path to Success
With data playing a pivotal role in tech adoption, the report reveals that organizations are prioritizing data proficiency, with investments in security, governance, and accessibility at the forefront. High-performing organizations in particular are finding that rigorous data management is helping them overcome operational challenges and maintain resilient systems. These organizations are now 18% less likely to encounter weekly disruptions in business due to foundational IT issues.
The report also points to a new trend: organizations are placing customer and employee feedback at the center of their tech strategies. According to the findings, many executives now recognize the potential of customer insights to drive high-impact decisions. Yet, despite this awareness, 78% of respondents say their organizations still struggle to make full use of this feedback. Holland stresses the importance of addressing these gaps: “Effective use of customer insights can reveal critical areas for process improvement and can make a tangible difference in the quality and relevance of tech deployments.”
The AI Advantage: Rewards and Risks
AI continues to dominate the tech landscape, but its rapid adoption presents both opportunities and challenges. While 74% of respondents report AI-driven productivity gains, scaling these solutions remains difficult. “AI brings exciting potential, but there’s an inherent tension in applying it at scale,” the report states. “As companies look to harness AI more effectively, they must prioritize transparency and employee empowerment to mitigate anxieties around automation.”
The study also reveals that 78% of organizations acknowledge a widespread “black box” perception of AI within their workforce, a sentiment that can erode trust and hinder adoption. “Leaders need to demystify AI for their teams,” Holland suggests, emphasizing the role of tech executives as both advocates and educators. “Building trust is essential, as is navigating AI adoption with a workforce-first mentality.”
Cybersecurity, XaaS, and the Path Forward
Investment priorities for the coming year are also shifting, with cybersecurity, XaaS [Anything-as-a-Service], and data security emerging as top areas of focus. Notably, the majority of executives in the Asia-Pacific [ASPAC] region report proactive progress in implementing XaaS strategies, driven by the flexibility and cost efficiencies of cloud computing.
“Our findings indicate a steady progression in digital transformation maturity across all tech categories,” the report notes. “XaaS and cloud technologies are making it easier for organizations to adapt quickly to changing demands, while robust cybersecurity measures ensure these innovations are not compromised.”
This careful balance of agility and security reflects a broader strategic shift towards sustainable, long-term tech investment. According to the report, 87% of companies report improved profitability from tech investments over the past 24 months, highlighting the value of a thoughtful, disciplined approach to tech spending.
The Role of Tech Executives in Today’s Landscape
For tech executives, the task of managing these transformations is evolving. Nearly 76% of respondents report a significant shift in their roles over the last two years. No longer just implementing new technologies, they are now responsible for guiding their organizations through complex digital ecosystems, balancing innovation with risk, and aligning tech initiatives with broader business goals.
“Today’s tech leaders are strategic innovators, tasked with navigating hype cycles and managing board expectations,” says Holland. He emphasizes that amid the excitement around emerging tech, there remains a pressing need for stable and transparent systems. “Balancing speed with prudence isn’t just good for business—it’s essential for long-term success.”
The KPMG Global Tech Report 2024 offers a detailed look at how organizations worldwide are rethinking their tech investments to maximize value, enhance security, and stay competitive. As companies push into new frontiers like AI and XaaS, they are setting a measured, deliberate course that prioritizes resilience and stakeholder alignment. For today’s tech leaders, success lies not in the speed of adoption but in the strategic clarity and disciplined execution that drives meaningful, lasting transformation.
In a world where the allure of cutting-edge technology is often matched by the risks it entails, the call for balance has never been clearer. By staying grounded in evidence and maintaining an unwavering focus on value, tech executives are charting a path to sustainable progress—one that promises to deliver returns far beyond the hype.
