A true digital organization starts with a clearly defined digital strategy that is closely aligned with the overall business strategy. This vision is realized through a tailored enterprise architecture integrating platforms, applications, data, infrastructure and networks, all underpinned by a robust identity and security framework. Equally vital is rethinking Technology Sourcing and governance. Optimizing the sourcing model and fostering strategic partnerships can unlock significant value and drive agility.

      As businesses grow or transform, robust Technology Mergers & Acquisitions (M&A) practices are essential for a seamless transition. These practices enable organizations to anticipate technology risks, effectively align IT landscapes, and unlock synergies across functions and geographies.

      In today’s digital landscape, modern technology foundations are inherently tied to Cloud Transformation. The cloud is a critical enabler of flexibility, speed and scalability. However, to realize its full potential, organizations must manage costs, ownership and governance effectively.

      In addition, more and more organizations are shifting their focus towards embedding Artificial Intelligence (AI) across the enterprise. AI provides organizations with the capability to improve efficiency, address challenges and make faster decisions. However, its true value can only be realized by aligning data strategies, establishing strong governance frameworks and fostering trust in automated processes.

      Ultimately, transformations must deliver impact where it matters most: to customers. Organizations must reimagine their end-to-end customer experience by placing customers at the center of their operating model. This can be achieved by intelligently orchestrating digital services powered by the cloud and AI to deliver seamless and personalized interactions across every channel.


      KPMG supports your end-to-end Digital Transformation journey – from strategy development to customer relationship management – seamlessly integrating transformation and innovation to deliver your desired outcomes.

      What is Digital Transformation and why is it important?

      Digital Transformation goes beyond simply adopting new technological tools; it represents a strategic shift in how organizations design, implement and leverage technology across the entire value chain.

      It involves rethinking how strategy, operations, technology and people align to enhance business operations, deliver value and serve customers in a digital-first economy.

      Key components include:

      • Scalable strategy supported by a comprehensive enterprise architecture
      • Tailored sourcing strategy
      • Well-grounded technology M&A processes
      • Optimized cloud infrastructure
      • Integrated AI tools and processes
      • Technology-enabled customer experience
         

      Unlocking insights: addressing market trends and challenges

      The goals of Digital Transformation are clear: to unlock business value, enhance customer experiences and build a future-ready organization.

      When done right, Digital Transformation improves operational efficiency, fosters innovation, enables data-driven decision-making and aligns IT capabilities with strategic business goals.

      But to achieve these outcomes, organizations must be aware of the following six main challenges:

        Unstructured digital strategies stall innovation

        Many organizations strive to achieve their digital goals, but they often lack the cohesive structure needed for success. Disconnected initiatives and isolated technology upgrades often fail to deliver sustainable impact.

        KPMG’s Digital Strategy & Operating Model services help you craft a clear, actionable Digital Strategy and Operating Model aligned with your business priorities. Supported by a scalable enterprise architecture, these services enable you to maximize technology investments while driving growth and agility at scale.

        Disconnected sourcing models hinder progress

        Legacy sourcing and vendor sprawl often slow down IT modernization. Fragmented contracts and poor alignment with business needs lead to inefficiencies, rising costs and delivery risks.

        KPMG’s Tech Sourcing services help streamline sourcing, align it with your objectives and build flexibility into your IT environment – reducing complexity and enabling a scalable, future-ready transformation.

        Fragmented experiences hinder growth

        AI, shifting expectations and economic pressure demand a new approach to customer value. Success means putting people first – across sales, marketing, service and commerce.

        KPMG’s Customer & Digital Advisory services help build human-centered, tech-enabled customer experiences. We connect the front and middle offices, use data to inform decisions and activate omnichannel strategies to drive loyalty, performance and sustainable growth.

        Lack of strategy limits AI

         

        Organizations often invest in AI with high expectations. However, without a clear strategy, data readiness and strong governance, the expected value is often unattainable. Disconnected initiatives, unclear accountability and misaligned priorities hinder progress and limit impact.

        KPMG’s AI Transformation services deliver a strategic, enterprise-wide approach to harnessing AI’s potential. We align use cases with business objectives, implement responsible AI frameworks and design scalable solutions that establish AI as a trusted catalyst for sustainable growth and measurable business outcomes.

        Hidden technology risks in M&A deals

         

        During M&A activity, IT risks are frequently overlooked. Inadequate integration planning, unaddressed legacy issues and architectural misalignment can lead to delays, disrupt transitions and jeopardize synergies.

        KPMG’s Tech Mergers & Acquisitions services help identify potential risks early on. We evaluate IT infrastructure, spending, applications and cybersecurity to mitigate risks, uncover value and enable seamless integration through informed decision-making.

        Rising costs from cloud sprawl

         

        The cloud offers speed and scalability – but without the right guardrails, it can lead to sprawl, rising costs and governance gaps. Legacy complexity slows progress, and poor visibility undermines value delivery.

        KPMG’s Cloud Transformation services help you regain control. We align your cloud strategy with business outcomes, modernize your IT landscape and implement secure, scalable and cost-efficient practices – driving efficiency, innovation and long-term success.

        Where can Digital Transformation take you?

        With the right plan, Digital Transformation helps companies evolve into connected, customer-focused and data-driven organizations. Here are examples of the benefits of Digital Transformation for different industries:

            • Consumer, Retail & Luxury

              Deliver seamless omnichannel experiences through Customer & Digital Advisory, enhance demand forecasting with AI and align tech sourcing to support scalable, cloud-enabled retail platforms.

            • Life Sciences

              Accelerate innovation through AI-driven R&D, secure Cloud Transformation for data sharing and compliant digital operating models that support regulatory agility.

            • Industrial Manufacturing

              Adopt smart independent factory models with AI Transformation, optimize global sourcing strategies and modernize core systems via scalable Cloud Transformation and agile strategies.

               

            Understand the digital maturity journey

            To create an effective transformation strategy, you need to know where you are. A digital maturity model shows you where to go next.

            • Stage 1: exploring digital change

              You use basic digital tools,but your systems are considered legacy. Your teams work in silos, and your technical and business goals aren't aligned. Manual business processes are slowing progress.

              We help you develop early technology strategies and align your objectives with your enterprise's vision, values and operating model.

            • Stage 2: structure and scale

              You've started with cloud migration and some automation. But there are still issues with IT governance, vendor management and process consistency.

              We help you design structured transformation programs, improve your sourcing strategy and support your cloud investments with hyperscale platforms.

            • Stage 3: integrate and optimize

              Your teams use multiple technology solutions, but the systems are not well connected. Data may remain siloed after an IT M&A. Your CRM system is updated, but not unified.

              We provide enterprise architecture and IT integration services to connect your systems and improve the customer experience.

            • Stage 4: innovate and lead

              Automation, cloud analytics and real-time data inform decisions. Your culture supports continuous Digital Transformation and innovation.

              We enable innovation through agile IT operating models, customer programs and data strategies.

               

            Our Digital Transformation solutions & capabilities

            • Digital Strategy & Operating Model

              Build an operating model that delivers on your digital ambitions. We help you define a clear roadmap, modernize your architecture and develop the capabilities necessary for scaling enterprise-wide transformation.

              KPMG enables you to bridge the gap between strategy and execution.

            • Tech Mergers & Acquisitions

              Technology plays a critical role in M&A success. We conduct comprehensive IT due diligence, assess risks and support integration or separation planning, enabling you to make better-informed decisions and capture deal value.

              KPMG uncovers hidden tech risks and unlocks synergies.

            • Cloud Transformation

              Modernize with confidence by putting the cloud at the core of your transformation. We help you design, migrate, and manage scalable cloud environments while embedding cost control, security and resilience.

              KPMG turns cloud complexity into a competitive advantage.

            • AI Transformation

              Transform AI from a buzzword into business impact. We help you develop responsible, scalable AI strategies, including use case selection, data readiness, governance and integration across the value chain.

              KPMG makes AI real, measurable and enterprise-ready.

            • Tech Sourcing & Transformation

              Rethink how your organization sources and manages technology. We support the development of integrated, future-ready sourcing models that reduce complexity, optimize costs and improve vendor performance.

              KPMG helps you take control of your IT landscape with strategic sourcing.

            • Customer & Digital Advisory

              Create seamless, personalized customer experiences by transforming how you connect with, serve and grow your customer base. From CRM modernization to digital touchpoints and data insights, we help you put customers at the center of your business.

              KPMG empowers your customer-first transformation.

            KPMG can help guide your transformation

            At KPMG, we support organizations at every stage of the journey. From early planning to implementation, we deliver practical, proven solutions.

            Let's build your future – together.

            Meet our experts

            Taher Balafrej

            Partner, Digital Transformation

            KPMG Switzerland

            Miles Underwood

            Partner, Digital Transformation

            KPMG Switzerland


            Credentials

            Definition of a digital strategy

            Definition of a digital strategy

            Case study

            App Design & Implementation

            App Design & Implementation

            Case study

            Digital strategy

            Digital strategy - Study

            Case study


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