Four in ten CEOs believe that their business requires repositioning to meet the needs of Millennials. More than two thirds admitted they have relied on their own intuition over data-driven insights to make strategic decisions in the past 3 years. These are the findings from the 4th annual KPMG International Survey CEO Outlook 2018.
More than half (51 percent) are less confident in the accuracy of predictive analytics compared to historic data, and have the highest trust for social media sources over all others.
"Data is hugely important, but ultimately CEOs have to make big calls and it’s clear that experience and intuition still have a role to play," says Ľuboš Vančo, Chairman of the Partner Board, KPMG in Slovakia.
CEOs are embracing the digital agenda like never before and taking personal ownership of data and trust. Seven out of ten respondents are personally ready to lead a radical organization transformation and 59 percent see protecting customer data as a critical personal responsibility. Counter to popular opinion, 62 percent expect AI to create more jobs than it destroys.
The ever-present risk of a cyber security threat is rising on the radar, up from fifth to second place overall this year in terms of risks hampering future growth. There’s also a growing sense of inevitability of a cyber breach with nearly half (49 percent) of CEOs saying that becoming the victim of an attack is a case of ‘when’ and not ‘if’. Only half (51 percent) of respondents indicated they are well-prepared for a cyber-attack, even though over half (55 percent) say that a strong cyber strategy is critical to engender trust with key stakeholders.
Six out of ten respondents expect cautious revenue growth. Half of CEOs (52 percent) say they will need to hit growth targets before hiring new skills. Also 59 percent believe agility is the new currency of business; indicating if they’re too slow they will be bankrupt.
The survey covers 1,300 CEOs in 11 key markets (Australia, China, France, Germany, India, Italy, Japan, Netherlands, Spain, UK and US) and 11 key industry sectors (asset management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology and telecoms). A third of the companies surveyed have more than US$10B in annual revenue, with no responses from companies under US$500M. The survey was conducted between 22 January and 27 February 2018.
To view additional information about the study, please visit www.kpmg.com/CEOoutlook.
KPMG Slovensko spol. s r.o.
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