Wednesday, June 19, 2024
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    High growth expectations in the AI-era at risk from short-term focus on technology, study warns

    According to the latest technology leaders survey, commissioned by Expereo and carried out by IDC InfoBrief business leaders expect rapid growth – so long as short-termism doesn’t get in the way

    Global enterprise tech leaders are bullish about growth in the next two years, however, short-termism could still get in the way of realising this surge, a new study warns.

    According to a new study from Expero conducted by IDC InfoBrief, 81% of technology leaders expecting to see moderate to high growth in the next 12 months, with technology in helping deliver this growth. Chief among the tech doing this is AI, with its rapid pace of adoption driving industry at a vigorous pace.

    However, the survey reveals major obstacles that must be overcome for technology to fully enable growth priorities, notably the emergence of a short-term, opportunistic attitude to technology planning.

    Technology’s role

    When asked about their business outlook for the next 12 months, 52% of global enterprises expect to see moderate growth and a further 29% expect high growth. The ability of technology to help deliver this growth has never been higher on the agenda, with almost a third of technology leaders (29%) saying growth (to increase revenue and/or expand into new markets, segments, and/or geographies) is in their top three priorities driving tech investments in their organisation.

    In addition, the top priority of technology leaders is now to contribute to business growth/increased turnover.

    Short-termism

    However, only 22% of global enterprises have reached full digital maturity – a scenario where a long-term digital business strategy is in place and there’s an orchestrated enterprise-wide digital-first trajectory. The reality is that most of global organizations are still working on opportunistic and short-term digital plans with isolated and siloed digital excellences across IT and Business units.

    In fact, a third (33%) of global enterprises admit to having a short-term focus, meaning digital strategy and initiatives are enterprise oriented but typically have a short lifespan. Interestingly, there are more than a quarter of global respondents who say whilst the CEO supports digital initiatives, they do not work closely enough with technology leaders, putting digital transformation initiatives in jeopardy.

    Digital maturity

    The range of challenges identified in the survey reflects the mix of technical, economic and cultural factors that technology and business leaders face today.

    When asked what the biggest risks or inhibitors are to their growth ambitions over the next 12 months, 38% of global respondents cited geopolitical issues as potentially affecting either their business or their technology providers. This is followed by inflation (34%), economic uncertainty (32%), uncontrolled spending by lines of business (31%) and performance of networks /connectivity globally (30%).

    When asked about serious challenges to executing the digital initiatives aimed at enabling growth, IT integration complexity (41%), partners’ capabilities (40%), lack of regional expertise (35%) were identified.

    Increased automation

    When asked how their organisations were planning to deliver global growth over the next 12 months, the number one driver is via increased automation for almost half (49%) of respondents; a further 60% agree that automating business operations and processes is now considered important or extremely important.

    Additional growth initiatives include an increased focus on cost containment and efficiencies (44%) and increased innovation (39%).

    AI is number one

    42% of respondents named AI as their number one technology investment priority, narrowly beating security (37%) and cloud or multicloud networking/connectivity (35%). 31% of global respondents believe AI/ML will be critical to fulfilling business ambitions, a further 60% say it will be important.

    Ben Elms, Chief Executive Officer at Expereo, comments: “This year’s Enterprise Horizons report brings encouraging news: there is a growing optimism about global growth, and the critical role of technology in driving this progress is widely acknowledged. Many organizations are eager to accelerate their journey toward the future through digital transformation, but the path forward remains a work in progress for many. Bridging the gap between the fifth of global organizations that exhibit full digital maturity and the rest is imperative.

    “To move swiftly into the future with digital transformation, organizations need a comprehensive long-term 360-degree digital strategy. This strategy must encompass every aspect of the technology stack — from AI/ML, automation, and analytics, to cloud performance, security, network visibility, and connectivity. Such a strategic approach is essential for ensuring the performance, agility, and scalability necessary for sustained high growth.”

    For the full IDC InfoBrief Enterprise Horizons 2024 report click here
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