Where 500 CxOs See Digital Transformation Headed In 2023

C-suite leaders have an insatiable appetite for cutting-edge tech moving into 2023. Over 500 CxOs believe that technology will drive resilience and future competitive advantage as well as be essential for better understanding and serving customers, according to Forbes research.

In the Forbes CxO Growth Survey 3.0, we surveyed over 500 global C-Suite executives and took a direct look at how CxOs are focusing on digital transformation to better meet customer needs.

While CIOs’ digital transformation plans will focus on deploying AI/machine learning (52%), implementing augmented reality (50%) and expanding the use of IoT (49%), our data shows that the larger C-suite is just as keen on embracing innovation.

The challenge? Our research also indicates where to focus digital transformation efforts—and the pace of innovation—is up for debate amongst executives. To help set expectations and enable more productive conversations within the C-suite, we uncovered four digital transformation trends heading into 2023.

CIOs have the opportunity to unify the C-suite with their technology and data expertise

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The C-suite Looks To Increase Spend On Technology

While CIOs primarily take the lead on digital transformation efforts, our research shows that there’s a unique chance in 2023 for CIOs to unify the C-suite with their technology and data expertise. With other executives forecasted to increase budget allocation in technology-centric areas, the role of the CIO becomes even more critical.

CMOs are mostly focused on increasing investment in IoT (70%), cybersecurity (69%) and AI (64%) to better serve customers and develop new products.
CFOs are prepared to invest in collaboration tools, AI and advanced workflows
CEOs are focused on budget increases for data and analytics (61%) and advanced workflow solutions (60%)
CHROs are planning to increase spending on enabling the hybrid workforce with collaboration tools (78%) and better cybersecurity solutions (78%)

Despite Volatility, Appetite For Emerging Technology Grows

CxOs are responding to several volatile factors, including regulations & corporate tax rates (42%), cybersecurity threats (39%), geopolitical instability (38%) and inflation (35%). Even so, the current climate is not preventing CIOs from prioritizing cutting-edge tech. According to our survey, most CIOs expect their digital transformation efforts to be faster and bigger in scope in 2023 compared to last year.

Luckily, the C-suite is on the same page. Nearly half (48%) of CMOs believe investing in Web 3.0 initiatives—even during volatile economic times—is worthwhile and ensures they’re keeping up with emerging trends. And CxOs are so confident that they plan to invest more budget and resources in AI (+61%) and Web 3.0 (+39%) within the next two years.

CxOs Look To Enhance Customer Experience—And Security

If you read our December edition, you already know that customer experience (CX) is a top priority across the C-suite. To enhance that experience, businesses rely heavily on traditional tech and data-centric approaches. In particular, executives look to track Customer Experience KPIs (41%), utilize customer analytics tools/software (39%) and introduce more customer touchpoints (38%).

For CMOs, protecting customer data is also a focal point for CX, as nearly half (45%) of CMOs want to enhance cybersecurity (a 32% rise year-over-year). And even though there’s a debate on where to focus digital transformation, most C-suite executives are aligned that cybersecurity will be a crucial topic in 2023.

A Dire Need To Optimize Supply Chains Emerges

CFOs are failing to mitigate risk when it comes to the supply chain. According to Forbes Research, just 27% of CFOs are retooling their supply chains over the next couple of years. To optimize supply chains, CFOs will look to four specific areas of opportunity:

Transitions to a digitized supply chain (37%)
Using data to identify inefficiencies (35%)
Partnering with more diverse suppliers (32%)
Repricing in order to meet higher costs (32%)

Looking for more supply chain insights? Catch Zero100’s supply chain predictions for 2023 on Forbes.com

Storyteller Spotlight

With cybersecurity being such a hot topic, how have small and midsize businesses (SMBs) fared during this unprecedented period of increased cyber threat, and what measures are they taking to keep their data and networks secure from future threats?

To find out, Intel, in partnership with Forbes Insights, surveyed more than 1,000 IT decision-makers (ITDMs) at small and midsize businesses. The survey asked ITDMs about their experiences with cyberattacks during and after the pandemic; how, if at all, they intend to adjust their digital defense postures; and what tools they trust to protect their data and maintain operational continuity.

The survey revealed that, while SMBs are keenly aware of the threats they’re facing, they tend to underestimate their data’s value to cybercriminals. And even though most companies think they’re caught up with the latest cybersecurity tech (60% are “extremely confident they are maintaining leading-edge cybersecurity practices”), our research exposed several blind spots.

Most ITDMs (72%) are committed to increasing their investments in cybersecurity over the next year, and our program with Intel identifies what they should be looking for.

Dive deeper into research: 7 Realities Facing SMBs As They Enter A Future Of Increased Cyber Threats

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Source: https://www.forbes.com/sites/forbescontentmarketing/2023/02/10/where-500-cxos-see-digital-transformation-headed-in-2023/