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Digital transformation: a major challenge for Canadian companies

Technologia
by Technologia
November 20, 2023
Technologia
Digital transformation: a major challenge for Canadian companies

The Global Technology Report 2023, written by KPMG1, makes a somewhat worrying observation about the ability of Canadian companies to keep pace with digital transformation. In fact, the report states that the unbridled evolution of technology is jeopardizing their competitive advantage and financial stability.

The study of 150 Canadian companies reveals that, despite their massive investments in artificial intelligence and process automation, they are unable to keep pace with their counterparts around the world. The report points to a glaring lack of financial resources and the need to generate more strategic investment, particularly in automation.

Lack of resources persists

76% of respondents to the KPMG survey deplore the fact that they have to do more with less. In the financial services sector, where 84% of companies surveyed said they were feeling the effects, the financial strain was even more pronounced. On this subject, Kathy Penner, Partner and National Leader of Enterprise Technology Solutions at KPMG in Canada, emphasizes the importance of targeted technology investments focused on specific outcomes, such as competitive advantage and cost containment, in light of lingering recession-related concerns.

Reducing costs is easier said than done

In order to reduce costs, the Canadian companies surveyed mentioned that they were already in the process of developing certain initiatives, such as :

  1. Expanding their use of cloud-based tools (79%);
  2. Making greater use of artificial intelligence (55%);
  3. Developing process automation through robotics (49%);
  4. Use quantum computing processes, particularly in the financial sector (46%).

The results are in for companies that have chosen to take a step in the direction of digital transformation. While 47% of Canadian organizations reported an increase in profitability of 6% or more, after two years of effort, less than half have yet to see substantial gains.

Sanjay Pathak, Partner and National Leader of KPMG's Technology Strategy and Digital Transformation Services, emphasizes the need for companies to optimize their technologies after adoption. "The fact that more than a third (36%) of Canadian organizations have yet to realize gains from their digital transformation efforts suggests that they need to rethink their strategies to ensure that they fully leverage their technology capabilities after the implementation phase," notes Sanjay Pathak, Partner and National Leader of KPMG's Technology Strategy and Digital Transformation Services.

In conclusion

Should we be concerned that Canadian companies are not keeping pace with digital transformation? The next few years will tell, but it's clear that these decisions will have to come from leaders and executives in order to spark a nationwide movement. As the KPMG study demonstrates, Canadian companies are at a crossroads, faced with limited resources in a rapidly evolving technological landscape. That said, a tight timeframe and limited resources can sometimes give rise to particularly interesting innovations. Managers will have no choice but to enter into this innovation process, and it will have to be done thoughtfully. As columnist Oliver Schmouker points out in Les Affaires2, having an idea or wanting to set up new processes will achieve nothing if they are not implemented in a sustained, step-by-step fashion. The urgency is palpable for these companies, which need to make massive, rapid and well-informed technological investments in order to maintain their market presence, despite economic uncertainty. A dossier to follow.

To find out more :

Innovation: from idea to market

Contact us

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