Digital transformation remains the very top concern of Australia’s business leaders as they look ahead to 2020, a survey of nearly 200 C-suite executives by KPMG Australia finds. The new entrants to the top 10 list this year are global political and economic environment; sustainability & climate change; leadership capability; and workforce upskilling.
The third annual edition of Keeping Us Up At Night: The big issues facing business leaders finds that an uncertain global political and economic environment (second place), climate change (equal fifth), leadership capability, accountability and stability (equal fifth) and workforce upskilling (tenth) have all risen noticeably on previous years and are now in the top 10 list of CEOs’ concerns.
Rounding out the top 10 places are: regulation (third place, as in 2019); innovation and disruption (fourth, down from second in 2019); public trust (equal fifth); customer-centricity (eighth) and domestic political paralysis (ninth) in the survey of leaders across business, industry and the public sector, carried out by KPMG Acuity, the firm’s research and insights business.
Gary Wingrove, CEO of KPMG Australia, said; “It is not surprising that digital transformation remains the top issue, and in many ways pervades the survey, given its close linkage to fourth-placed innovation and disruption. This indicates Australian CEOs are acutely aware of the need to reimagine their organisation for the digital era, while harnessing new technologies such as blockchain and artificial intelligence.”
“C-level executives in business and government are also concerned about the effective delivery of large transformation projects. They may run large legacy organisations, with hundreds of products or services and find that untangling established processes, systems and mindsets, while profoundly necessary, can be extremely challenging.”
The regulatory environment remains a top three concern, with many respondents believing over-regulation is inhibiting innovation and greater weight should be given to the longer term in determining the right balance. Respondents also noted a growing tendency for regulations to be introduced quickly and with more limited consultation with business. The post-Hayne era of more stringent regulation is believed to be the new era for the 2020s.
