Companies are investing money in new technologies to improve operations and supply chains, but significant business outcomes are still difficult to achieve, according to a survey from consulting firm PwC.
More than two-thirds (69%) of operations and supply chain officers say tech investments haven’t fully delivered expected results, the firm said in its “2024 Digital Trends in Operations Survey.”
The survey of 600 operations and supply chain officers found a significant gap between what they expected new technology to deliver and the actual results. And that’s something few can afford in a world where 45% of CEOs believe their company won’t be viable in 10 years if it stays on its current path, PwC found.
The survey identified seven specific reasons that most operations aren’t getting what they expect from tech: integration complexity (30%), technology didn’t meet expectations (28%), people capabilities (27%), data issues (26%), vendor capabilities (25%), program leadership (25%), and business case (19%).
More broadly, they tracked four themes to explain the shortfall:
- Most companies are spending on new tech, but investments vary greatly and it’s unclear how technologies are working together — especially since more holistic solutions generally see less investment.
- Almost all respondents say their companies have at least a toe in the water with generative AI (GenAI), but only 20% report widespread use in operations and supply chain, and benefits to date have been uneven.
- Digital skills are still taking a back seat. Less than a third of respondents say evolving their digital workforce and increasing digitization, automation and analytics are among their top priorities.
- All this likely is why 59% of respondents cite more than one reason their operations technology investments haven’t fully delivered the expected results.
Gartner, Inc.