IT chiefs vote for innovation, but are they forgetting technology debt?

Despite geopolitical tensions, KPMG’s latest Global Tech Report 2022 There is a huge appetite across businesses for new and emerging technology platforms.

Based on a survey of 2,200 executives to 2022, the report found that businesses are eager to adopt new technology and ready to invest in new tools, with customer value the primary driver of all technology activity.

According to KPMG research, more than two-thirds of businesses (67%) are crypto, metaverse, Web3, Near field technology (NFT), quantum computing, Virtual Reality and Augmented Reality (VR/AR,) 5G, and edge computing in two years. The survey also found that more than half (57%) of businesses are engaged in transformation to improve customer experience, while 88% say they are advanced in adopting cloud technology.

Customer experience According to KPMG, digital transformation is one of the primary drivers for unlocking budgets. It covers customer-centric experiences, which require designing workflows, services and products to meet customers’ needs in the most efficient way possible. “Our respondents indicate that marketing, customer service and sales functions are benefiting the most from digital transformation programs, a direct result of the customer-centric strategies respondents are using,” the report’s authors said.

Commenting on the drive for customer-centricity, Barry Brunsman, global leader of the CIO Center of Excellence at KPMG International, said: “Customer experience is driving substantial enterprise investment in IT and becoming synonymous with digital transformation. Technical strategies are anchored to create loyalty-winning experiences, protect and drive revenue [high] Level of recurring revenue from customers.”

Not surprisingly, the report showed high levels of cloud adoption. The KPMG survey found that 88% of respondents said they are advanced in their cloud technology adoption, and just under three-quarters (73%) are moving strategic workloads to the cloud. Only 15% of businesses said they had already completed a migration and were looking to optimize their systems.

KPMG has found that organizations that are highly effective in digital transformation, and see the highest return on their investment, fully meet or exceed their objectives with cloud programs.

One of the questions KPMG asked in its survey was about technical debt, where the IT function struggles with maintaining outdated systems as new technology is introduced to the business. As new systems are deployed, they are often replaced as the business continues and require ongoing maintenance Maintenance Work Level More new systems are installed over time.

Some industry experts estimate that technical debt is up to 40% of the annual IT budget.

Nearly three-quarters of survey respondents (73%) said the long-term maintenance costs associated with system deployment have little or no impact on their IT ambitions.

Compared to the global average, operating respondents from India are most likely to feel that their IT ambitions are hindered by technology debt (11%). KPMG found that more than half (53%) of all respondents typically address enterprise IT upgrades in line with an agreed schedule. In the report, KPMG warns that poorly managed technical debt can trigger integration problems and reduce overall productivity levels.

“To avoid fragmentations that can harm customer interactions, blueprints for emerging technologies should not overlook the importance of reducing technology-leverage obligations,” the authors say.

The KPMG report quotes Michael Natush, Prudential’s chief science officer, who said: “It’s very easy to build beautiful prototypes; It’s very difficult to build features that go live with real customers while reducing the likelihood that technology debt will become an issue.”

KPMG suggests that incorporating IT execution team feedback into early planning for emerging technologies can help these innovation efforts support seamless engagement with customers.

Looking at KPMG’s results, which showed respondents were less concerned about tech debt, Brunsman said: “Tech debt is a real problem, but the elimination of tech debt doesn’t appear to be an argument for investment.”

In his experience, other business outcomes provide the basis for investment and technical debt is addressed as an ancillary benefit. “Eliminating technical debt is not a motivator for investment, but it is a benefit of that investment,” Brunsman said.

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