As the array of technology tools at companies' disposal continues to expand at an astonishing rate, the demand for technology's influence in business is also on the rise. Tech transformations are not isolated incidents but a perpetual aspect of corporate life. Our recent McKinsey Global Survey of technology and business leaders reveals that most companies are allocating resources to tech with an eye on future growth, and they are reaping positive outcomes from the transformation efforts they have already undertaken.

Key Insights from the Survey

Modernize Architecture and Platforms

Top performers are investing more in cutting-edge technologies like cloud to overcome the sluggish delivery of IT solutions due to legacy systems. Cloud presents a vast opportunity for businesses, with a significant portion still untapped. Our survey shows that three-quarters of top performers are adopting cloud at scale, compared to only one-third of other respondents. This aligns with previous findings, where 61 percent of top performers were investing in infrastructure, including cloud. Cloud is the most commonly used advanced technology, and top performers are also more likely to adopt a range of other technologies during implementation.Companies adopt a multicloud approach, and the overall investment seems to be yielding results. Only 8 percent of all respondents report no business value from cloud migrations. Top performers identify various benefits from cloud migration, with increased speed and agility being the top priority, followed by business growth and new capabilities.

Build a Future-Ready Tech Talent Pool

Developing a talent pool with the right skills to support the tech strategy is a challenge for many companies. Top performers are addressing this by investing significantly in their people. They pursue more talent strategies, focusing on reskilling, training, and development at scale. In the previous survey, only 28 percent of top performers were very effective at training and development, indicating their efforts to improve. They are also more likely to say their companies have transformed their talent, partnerships, and capabilities in the past two years and plan to continue in the future. In terms of hiring needs, both top performers and other companies focus on cybersecurity roles, but top performers have a greater focus on cloud roles.

Eliminate Operating-Model Silos

Compared to the previous survey, top performers are even more committed to technology and working models that support it. They are more than twice as likely to have engineering teams organized in product- or platform-centric operating models, which break down silos between tech and the business and bring several benefits such as reduced time to market and costs.

Demonstrate Clear Business Value from Tech Investments

Top performers are more effective at executing specific transformation initiatives and realizing the business value they seek. For most plays except modernizing infrastructure, they rate their technology organizations as more effective. They plan to invest further in various plays, with the greatest focus on shaping a technology-based business strategy. The top impact from tech transformations for them continues to be new revenue streams and increased revenue from existing ones.Tech transformations are now a regular part of the business environment, and organizations need to understand how to invest and use tech to achieve their goals. By following the lead of top performers and focusing on eliminating silos, modernizing architecture, aligning strategies, and demonstrating value, companies can ensure success in their tech transformations. The future of tech is promising, and it's time for all companies to make strategic tech bets, especially in cloud and talent management.