KPMG recently released their 2022 CEO Outlook, seeking the perspectives of 1,325 global CEOs across 11 markets about their 3-year outlook on the business and economic landscapes. A central survey topic was investment in disruptive technologies. Perhaps educated by historical market performance, most CEOs continue to invest in digital transformation. In fact, according to the survey,
“In uncertain times, it’s imperative businesses focus their digital investments on impactful, and measurable, value creation opportunities most able to support their strategic goals” (KPMG, 2022a).
Additionally, CEOs see disruptive technology emerging as the greatest threat to organizational growth over the next three years. Because of this, 72% of survey respondents are aggressively investing in digital transformation, wanting to be seen as first-movers or fast-followers. Tied with attracting and retaining talent, advancing digitalization and connectivity also ranked as the top operational priority for CEOs over the next three years (KPMG, 2022b).
The Impact of Data Investments
Over the past decade, we’ve seen strategic investment in digital transformation improve business operations and generate outcomes as significant as a 4-5% margin increase and a 52% decrease in employee turnover. (Read the case study here: CoolSys.)
To better understand how private equity firms are currently leveraging data in portco operations, we hosted operating advisor and data analytics leader Marty Moore of Tenex Capital Partners on our Expert Insight Series. Below, Marty discusses the importance of investing in technology:
“Too many portfolio companies have not invested in tech for too many years and find themselves playing catch-up.” - Marty Moore
Top CEOs are investing in disruptive technology to power their organization's growth, and a critical first step is to develop your data environment to support better visibility into business operations. To that end, Blue Margin helps private equity and mid-market companies quickly convert their data into automated dashboards, the most efficient way to create company-wide accountability to the growth plan. We call it The Dashboard Effect, the title of our book and podcast. Our mission is to deliver breakthroughs early and often - within your timeline and budget.
For Further Reading
- The Tide is Changing: Use BI for Control Amid Uncertainty
- Jill Belconis on Scaling Business with Clarity and (Data) Alignment
- Data and the Art of Exploiting Headwinds
- KPMG. (2022a). KPMG 2022 CEO Outlook. KPMG. www.KPMG.com/CEOoutlook
- KPMG. (2022b). https://home.kpmg/xx/en/home/insights/2022/08/kpmg-2022-ceo-outlook/tech-and-digital-transformation.html