A Forrester report prepared by Nigel Fenwick with Pascal Matzke, Ted Schadler, Bobby Cameron and Annika Gunderson says CEOs should start listening to CIOs for making tech experiments as part of their digital strategies.
The report on digital technology indicates that both CEOs and CFOs are suspicious of CIOs’ requests to make experiments with technology, preferring instead to see signs of a positive ROI before making investment in digital strategy.
“But this approach to tech investment is changing as innovative companies fund the types of continuous experimentation needed to unlock technology’s capacity to deliver new customer value,” Nigel Fenwick said.
If CEOs are not willing to invest in technology experimentation, it will be difficult for less mature companies to catch their more mature competitors.
CIOs and other digital leaders must manage investments like venture capital firms. Managing a portfolio of projects has been a resource challenge for technology leaders. Tech leaders must now figure out how to evolve their core systems and invest in emerging technologies.
5 technologies critical to digital strategy
# Web and mobile technologies/apps
# Cloud technologies
# Choice analytics and data science
# Mobile devices
# Artificial intelligence / machine learning
A study by Infosys on digital technology outlook said enterprises use digital technologies across areas in their core IT management (79 percent), business process management (60 percent) and customer relationship management (62 percent).
The research found that organizations are looking to utilize digital technologies across knowledge management (33 percent), operational intelligence (31 percent) and product development (28 percent).
67 percent of organizations are leveraging big data analytics. Over half of these organizations have already made investments in deep learning algorithms of AI.
The research also revealed that customer-centric technology investments are among the top three priorities for all industries except Manufacturing and CPG.
The Forrester report said vast majority of companies focus their digital strategy on web and mobile. They begin to shift their technology focus toward more advanced technologies like machine learning and artificial intelligence (AI) during their digital journey.
Few companies view more emerging technologies like augmented reality (AR) and virtual reality (VR) as critical.
Technologies such as Web, mobile, cloud, and analytics, which are foundational items to digital strategy, top the maturity list as well. This suggests that digital strategy equates to what they do in terms of web and mobile.
The report said advanced companies are beginning to see the importance of investment in AI and ML. While 44 percent of advanced companies see AI/ML as critical to strategy, 27 percent of beginner companies take the same view.
Security and privacy tech are firmly in the top 10 — but should be higher as part of the their digital journey.
Most companies are yet to focus on a number of technologies as part of their business strategy. These include AR/VR; automated voice interfaces and bots; GPS and location technologies; 3D printing; and RFID/near field communication.