It’s no secret that digital transformation is one of the most important ways companies move forward today. However, due to the difficult economic conditions that we have to deal with, etc. Broadridge Financial Solutions Find out how business leaders see transformation in our latest research.
Broadridge’s “Digital transformation and next generation technology in 2023A survey of 500 executives found that 60% agree that blockchain and distributed ledger technology (DLT) will become a core part of financial market infrastructure within the next decade.
Additionally, 71% say artificial intelligence (AI) is already impacting the way they work. The expectation that technology will take precedence, and an understanding of how new technologies such as AI will soon impact work, appear to be reflected in corporate spending.
Businesses are currently spending 27% of their total IT budgets on digital transformation. This represents a 16% increase when compared to his 2022 survey in Broadridge. These numbers may not come as a surprise, as 53% of digital leaders see greater revenue growth as one of the most important benefits of digital transformation.
Rising interest rates and a weakening economy have emerged as barriers to attracting and retaining talent. With difficult times ahead for businesses, 57% of businesses agree that keeping up with digital transformation will hurt their ability to attract and retain talent.
Digital transformation in Europe
Despite our aggressive commitment to digital transformation, the study found that there are some of the biggest challenges making the goal even more difficult. 39% of European companies report inadequate funding for innovation. Meanwhile, 37% report experiencing staff resistance to constant change. The third most common challenge in Europe was ongoing market and economic disruption (35%).
For European companies, the study found that the largest increase in technology companies over the next two years will be directed at cybersecurity technologies. The average increase in spending was 29%, which was slightly higher than the investment in cloud platforms and applications, which averaged 28%. Investments in data analysis and visualization tools also appear to be a priority, with an average increase of 26%.
While 65% of European companies believe blockchain and DLT are the future of financial services, only 60% of US companies and 54% of Asia Pacific companies agree.
Also, European companies seem less confident in the potential of the Metaverse. Less than a third (31%) believe the metaverse is key to client interactions. This is less than 42% of US companies and less than 43% of Asia Pacific companies.
Over the next two years, companies plan to increase their investments in the metaverse by an average of 5%. Broadridge suggests the statistic may suggest a “wait-and-see” approach before companies commit to investing in the technology.