The 2018 Technology Outlook focus is upon strategies that tech companies are leveraging as they plan for growth.
In an age of digital disruption, technology companies do face increasing pressure in order to improve time to market and also ensure their offerings are the best in class.
One has to cope with help companies to gain a competitive edge in growth areas such as cloud, cognitive computing, and data analytics.
Where does one see opportunities for growth in 2018?
The technology industry trends are indeed driving growth this year that will include cloud computing; flexible consumption; cognitive computing; user-friendly tools, APIs, and apps; and data.
Important innovations are indeed making cloud computing more valuable for companies as they seek to transform their operations and business models. These advances are helping accelerate deployments of artificial intelligence and Internet of Things solutions, while does enable deep, analytics-driven insights.
Cloud is driving demand for flexible consumption (“pay as you go”) models. Connected devices and the Internet of Things have indeed made more products suitable for “as a service” consumption, thus enabling lower unit costs and enhanced customer relationships.
Although still in its infancy, is indeed helping companies to enhance products as well as services, to make better decisions, and also improve operations. In particular, machine learning is helping companies to find patterns (and anomalies) in large data sets.
APIs, and apps are indeed ensuring that in the future fewer people will actually need to know how various technologies do work.
One is seeing the breakdown of data silos and the emergence of tools that does connect disparate information. Companies are getting better at extracting key business insights.
Which strategies are tech companies thus using to facilitate growth?
Tech companies are indeed relying on the tried-and-true, like M&A and divestitures, and testing out new strategies.
Buy, build, or partner.
The complexity that is involved in designing today’s technological platforms does require deep expertise in multiple areas. To compete more effectively, would-be competitors are who are making use of “coopetition”—pooling their resources for mutual gain in areas where they do not compete directly.
Mergers, acquisitions, and divestitures do provide a fast track to fending off competitors from both inside and outside the industry. Spinoffs and divestitures can also help companies to quickly scale or shed assets.
Venture to invest.
Tech companies, through their venture arms, are also actively investing in startups within growth areas such as artificial intelligence.
The most successful companies will be those that are able to observe around corners and anticipate unexpected disruptors. This will increasingly involve looking beyond one’s own industry.
Other key areas to watch include:
While the cloud and mobile devices are essential components of any company’s digital transformation, they do present a significant cybersecurity risk. New technologies, such as AI-powered bots and robotic process automation, are beginning to play an increasingly important cybersecurity role.
Technology companies do face a host of regulatory challenges, ranging from privacy and security to taxation and data sovereignty. The power of the regulators is undeniable—their impact can literally be catalytic or catastrophic for businesses.