Given that the spend on digital technology is due to grow eight times faster than the economy this year, we are seeing technology budgets sharply increase. Indeed, by 2026 40% of total revenue for G2000 organizations will be generated by digital products, according to the International Data Corporation (IDC) Futurescape: Worldwide Digital Business Strategies 2023 Predictions report.
The time for focus on technology and tech investment is now. And the spotlight is centered on business leaders — and investors — being able to find quantifiable business value and sustainable growth solutions, as we gain traction and speed in this new age of digital transformation.
Pressure to Deliver
Often described as being under a triple squeeze — scarce talent, supply issues and general economic pressure — CIOs are under immense duress and demand to search for and find solutions quickly and deliver accordingly.
Demonstrating this, Gartner recently surveyed over 2000 CIOs in 81 countries. In total, the surveyed participants represented $15 trillion in public sector budgets and $322 billion in IT spending.
Of those organizations polled, 50% expect to increase their spend budget on cloud technology — cloud platforms in particular — and almost the same amount will increase their spend on application modernization.
The results clearly reveal the exigency to accelerate time to value from digital investments and show four key ways to ensure tech investment delivers digital dividends:
- Prioritize: Optimization rather than growth is the new priority for CIOs. “Leading CIOs are more likely to leverage data, analytics and AI to detect emerging consumer behavior or sentiment that might represent a growth opportunity,” said Janelle Hill, distinguished VP analyst, in the Gartner report.
- Create: “If you can’t measure it, you can’t manage it” is often quoted, attributed to the late W. Edwards Deming, a leader in quality improvement. You also cannot improve it if you don’t watch those metrics. So, CIOs must create a visual metrics hierarchy and so identify the chain of identifiability.
- Contribute: Traditionally, we have seen a dependence on IT staff to deliver, and this needs to change. Fusion teams — a combination of business technologists, IT and business experts that are together focused on achieving the best digital outcomes should be formed. A democratic digital delivery by design, notes Daniel Sanchez-Reina, VP analyst at Gartner.
- Reduce: The talent gap must be reduced and employees should be retained, using relatively untapped sources of tech talent, such as students and gig workers.
ServiceNow Launches Major Platform Expansion
As one solution, the digital workflow company, ServiceNow, today launched the Now Platform Utah, a new major platform expansion. This latest version includes expanded workforce optimization, health and safety incident management and AI-powered process mining. This offers greater organizational agility and that sought-after solution to upgrading business speed and innovation in these changing and sometimes uncertain times.
Focus on Speed
The National Association for Stock Car Auto Racing (NASCAR) also expects the ServiceNow Utah release to help them accelerate. As a producer of some of the largest and most exciting sports events in the world, it’s essential to also create the most dynamic and motivated experience possible for fans, employees and of course, those all-important sponsors.
NASCAR’s tech target is to become the most technologically advanced sports entertainment company, said Chris Tozier, MD of enterprise applications at NASCAR. The new platform is critical to assisting them in driving growth and gaining speed in this new and exciting age of digital transformation.
It’s a highly competitive environment in more ways than one. The finish line is always the same: To maximize engagement and experience (for everyone) and therefore increase productivity.
As Tim Clark, chief digital officer of NASCAR remarked in a recent Forbes interview, “Our marching orders are really clear: We focus on engagement. Whether we’re serving 100 or 100 million users, we’re focused on improving the experience and deepening the engagement. One of the results is that of all of the US-based sports league websites (NFL, MLB, NBA, NHL) we have a consumption rate that is higher, exceeding four pages per visit.”
Together, we can all create the future we imagine. Pick the dream team. It’s time to buckle up and enjoy the ride.