Australian companies turning to new tech amid COVID-19

Research from KPMG International has found that Australian companies are prioritising investments in AI, cloud, blockchain and edge computing, in response to the onset of the COVID-19 pandemic. The report, a collaboration between KPMG International and HFS Research, Enterprise Reboot, surveyed 900 technology executives to explore the current and future state of emerging technologies and revealed that while the majority of global organisations have increased investments in emerging technology over the past few months, others are pausing and reconsidering the impact of COVID-19.

Of the executives surveyed, 59% said that COVID-19 has created an impetus to accelerate their digital transformation initiatives, while four in 10 said they will halt investment in emerging technology as a result of COVID-19. Executives have turned to must-have technologies, with 56% of those surveyed saying cloud migration has become a necessity due to COVID-19.

The report found that the biggest issues preventing technology initiatives delivering value in Australia are related to organisation culture, commitment to the expected benefits and worries about the risk of failure. One in five (20%) of Australian executives reported challenges with changing the culture of their organisation, higher than globally (12%). Australian respondents are also further away from seeing value from emerging technologies, particularly in 5G and edge computing, than other organisations in the world.

Jon Stone, Partner at KPMG Digital Delta, noted that Australian respondents are driven to emerging technology because it is seen as essential to business survival, with cost reduction a secondary driver for investment. Australian respondents are driven by a desire to improve decision-making and customer experience.

“Emerging technologies and new ways of working can play a significant role in the transformation to a more digital economy. These technologies are helping Australian organisations build customer, citizen and stakeholder trust, keep remote workforces connected, increase business resilience and build a strong foundation for future product and service innovation,” Stone said.

Australian businesses have a more variable approach to cloud technologies, with lower maturity for containerisation and hybrid cloud, but a greater focus on building micro services. Findings revealed that the majority of organisations will continue to focus on uplifting the maturity of data platforms and analytics, with 73% of respondents stating the need for further investment in enterprise data platforms.

Shane O’Sullivan, Partner at KPMG Digital Delta, noted that while the COVID pandemic isn’t affecting all industries equally, many of the industries facing the crisis are prioritising the transition to a digital business model.

“Now more than ever, organisations need to make smart investments in emerging technologies if they are to prevail in the medium to long term. Those who don’t risk threatening their own survival,” O’Sullivan said.

Image credit: ©stock.adobe.com/au/Blue Planet Studio