CEOs see business transformations as the new vogue – this is the sign to upgrade your tech

Skywards view of several black-glass buildings, reflecting the clouds above in the windows | CEOs survey EY

Transforming your business isn’t a decision that can be made lightly – it requires a deep understanding of all your business processes, and also what efficiencies can be made through the application of new technology.

EY’s CEO Outlook Pulse survey in January 24 evaluated over 1,200 CEOs across 21 countries and focused on what the overall expectations and attitudes were towards profitability and growth in an economically challenging time – many are considering prioritizing a business transformation to instigate profitable changes. Despite a potentially difficult economic climate, EY’s survey found 64 percent of CEOs still expected revenue growth, with 63 percent pushing for profitability.

While more than half the CEOs surveyed wanted to push for more future gains, 76 percent expect the global economy to endure low, or even no growth. A few more, at 78 percent, are prepared to weather interest rates remaining high for longer, partly due to inflationary pressures as 57 percent expect their business costs to increase.

EY’s findings seem to come to an interesting conclusion that the confidence and positivity CEOs have for growth is due to a rush towards business transformation. Just over half, at 58 percent, wanted to accelerate any transformation agendas. This figure has tripled from last year’s 21 percent. On the other end of the scale, only 5 percent have no current transformation plans, contrasted to 37 percent in July 23.

Ultimately, CEOs recognizing the potential in a business transformation seems to have instilled a sense of confidence for the future. New technology is a means for driving increased process efficiencies across an entire company, with 41 percent of CEOs looking to implement AI to enhance business performance. While the drive for a more efficient business seems to be acknowledged by just under half of CEOs surveyed, a majority 76 percent believe the technology won’t have much of an impact regarding overall revenue growth.

Andrea Guerzoni, EY Global vice chair, strategy and transactions, reflected on the insights and said: “Even though CEOs expect continued stagnation of the global economy, this hasn’t dampened their drive for profitability. Exhibiting a newfound resilience and confidence, CEOs are on the hunt for opportunities to drive efficiencies and transform their business for growth. Anticipating an upswing in the M&A market now showing signs of recovery, many are now meaningfully revisiting their business transformation plans, scanning for smart investments and laying groundwork for potential alliances.”