Although there are various unknowns in business, business and technology leaders are particular about supporting their business strategies using digital transformation. In a survey conducted by PWC on 89 CIOs, CTOs, and 650 business executives, 60% say that banking on digital transformation undertakings or initiatives is vital to their business in 2022. Only enduring the priority of recruiting and retaining talent ranks higher at 77%. Therefore, the business leaders are investing in digital initiatives. These investments are driven by their need to support the evolving skill and enhance competitiveness, decision making, and agility.
According to Arvind Krishna, the CEO of International Business Machines Corp, technology has moved from the cost of conducting business to an essential source of gaining a competitive edge. The leader’s decision to invest in digital transformation is also informed by their need in the ever-evolving global tax environment and the ongoing uncertainty of taxes.
Data And Cloud Top The CIO Agenda
Asked where they will spend more of their money and time in 2022, most CIOs said they prioritized their operating modes to become more agile. This would mean having a holistic approach to how the CIOs get things done, addressing processes, people, suppliers, and automation. Though tackling everything at once seems ambiguous, it is the shortest path to value. About 27% of the CIOs regard recruiting and developing talent top priority. This underscores that transformative change needs a holistic approach, not only focusing on one dimension.
Data and cloud are the other primary priorities. Due to how interconnected they are,more CIOs will invest, manage, and develop their cloud and data capabilities in conjunction with AI more holistically.
Bill Braun, the CEO of Chevron Corp, argues that there are low-cost, rapid, highly capable sensors everywhere. He further asserts that you cannot buy a valve or a motor without a set of sensors. Hence, there is a need to harness the data from the sensors, and that’s where the cloud comes in. businesses need the cloud, compute, or even AI to make sense of the data.
Tech Leaders And Tax Leaders Are The Current Dynamic Duo
Though every C-suite leader has a role in digital transformation, the tax leader might be underappreciated. This is because the tax considerations, including R&D tax credits, intellectual property management, and state tax incentives and credits, could help offset the digital transformation costs, add value, and identify potential liabilities.
However, according to PWC’s research, most CIOs aren’t fully leveraging this powerful collaboration. Only about 17% of the CIOs confirmed they consider tax during the planning stage in an initiative to transform their businesses digitally. Unfortunately, only 13% said they consider tax in the entire project, with 45% doing so when gathering the information and designing the project. However, there are significant benefits of engaging with a tax leader often and early.
By working closely, you could build a stronger business case. Other times, it is only a matter of ensuring the digital transformation projects capture high-quality data, which might inform better taxability decisions.
AI Drives Innovation, And Emerging Technology Convergence Is Driving The Metaverse
Besides considering data and cloud, technology leaders also believe how trends and technology can be used to drive future growth. Today, AI is at the top of the list of trends that leaders see as vital to the services and products of a company. This confirms that Artificial Intelligence is today viewed widely as the mainstream technology that leaders look to leverage to improve decision making, innovate services and products, and create better customer experiences.
Metaverse is the culmination of the technology convergence, with 46% of the CIOs saying it will be essential to their offerings. The cloud technology addresses storage and processing power to support immersive interfaces and extended reality. Hyperconnected leveraging 5G are near mature. The tech leaders use AI to develop digital reflections combining computer vision and deep and speech learning to offer their users an authentic feel. Automated financial systems are now capable due to the decentralized finance supported by Blockchain.
According to Kathryn Guarini, the CIO of IBM, Blockchain and AI have been slow at driving change than predicted. However, she asserts that they both have many capabilities and more. They require infrastructure and a shift in business models, which quantum computing might address. Guarini further says that quantum computing might be an essential component of enterprise technology.
However, the signs are better. About 47% of the tech leaders and another 43% look at Blockchain and cryptocurrency as a driving force for new services and products. The metaverse could change how consumers and businesses interact, so most tech leaders consider it.
Tech leaders are constantly trying to stay abreast with the changing technology and evaluating whether or not they should outsource business process or build skills internally. They all agree that digital transformation is essential for improved competitiveness, high product quality, and reduced cost of production. Technologies like the metaverse, Blockchain, and AI will bring about disruptive changes in the business. Hence, all the C-suite leaders must do all they can to keep pace with the changes.