How will technology spending drive business value in 2023?

Despite some mixed economic signals and various business challenges around the world, technology executives need to approach the 2023 planning cycle with a growth mindset. The lessons of the pandemic are clear: technology will continue to be a beacon in helping businesses better connect with customers. The most customer-obsessed organizations accelerated their move to digital during the pandemic and will continue to do so in the future to deliver innovative customer experiences. It’s up to your IT leaders to align technology architectures and build the IT roadmap to ensure successful digital transformation. And that requires spending.

Forrester’s US Tech Market Outlook, 2022 report showed an acceleration in technology spending since the start of the pandemic. US technology spending increased 9% in 2021 and is projected to reach 7.2% year-over-year growth by the end of 2022. Additionally, Forrester’s recent Budget Pulse Survey found that 67% of US IT professionals predict an increase in technology budgets in the next 12 months, with 26% of respondents expecting an increase of more than 5% in their technology spending.

But ramping up spending at a time of looming geopolitical friction, widespread inflation and chronic supply chain constraints means you have to have a plan and stick to it. Forrester’s 2023 Planning Guide: Technology Executives provides the data and information you need to navigate these obstacles without sacrificing growth and to ensure that increased technology spending is put to the right use. Some of the points we delve into in the planning guide include:

  • Get value before you cut costs. Align technology investment decisions with the same risk and opportunity framework as the business itself. The need to quickly translate technology decisions into business value has never been more important. Whatever happens, technology executives must keep the needs and expectations of their company’s customers at the center of their investments.
  • Reduce costs that do not move the customer forward. Link technology spending directly to delivering business objectives and customer value. Don’t let tech funding become ineffective by negotiating the seemingly endless trade-offs out there. Technology executives must take a cost-to-value approach and empower the IT organization to strengthen business results.
  • Focus on pragmatic innovation. Find out where the IT organization can become more valuable to the business. Use experimentation as an opportunity to focus innovation on the pragmatic instead of the dynamic. Technology executives must test technologies, concepts and capabilities that can have a direct impact on results.
See also  New technology helps self-driving cars handle bad weather – IoT World Today

Above all, for the coming year, use your customer as your North Star and stick to your decisions and commitment to building business value.

Learn more about how you can plan for next year here.

This post was written by Christopher Gilchrist and originally appeared here.

Leave a Comment