KPMG asked 740 “tech industry leaders” about their innovation priorities and found IoT the biggest likely winner in the next three years and increasing scepticism of artificial intelligence.
Here are our five hot takes from the KPMG 2019 Technology Industry Innovation Survey
Internet of Things was seen as the top driver of business transformation over the next three years. KPMG said this was “no surprise given how broad and far reaching the category is,” from wearable health monitors to connected home and cities. The International Data Corporation forecasts global IoT spending to reach $745bn this year and $1.2tn by 2022.
Strong security is imperative for IoT to succeed. KPMG warned that failure “to secure IoT devices and their connected ecosystem could prevent a company from delivering services, protecting sensitive data or even keeping customers safe.”
Leaders use technology to reduce costs not grow revenue. “Almost regardless of the specific technology, industry leaders most frequently cited the bottom line impacts of ‘improved business efficiencies’ or ‘increased profitability’ as the top benefits of adopting transformational technologies.” Increased market share and adding revenue streams were hardly mentioned by the respondents to KPMG’s survey, suggesting they have not figured out new models yet and are focused on taking costs out.
Automated software bots are already widely used to perform basic tasks and even for “making decisions that were previously in the domain of humans.” Financial reporting, invoicing and data entry are among the case study uses cited. “RPA complements and augments human skills and boasts the power to exponentially increase the speed, scale, quality, precision and efficiency at which enterprises operate.”
Artificial intelligence is not as hot as last year. KPMG felt residents were taking “a step back” to “assume a more proof-of-concept position as they seek to integrate AI with existing business and operating models.”
The online survey carried out by KPMG was conducted between December 2018 and January 2019.