Growth is always a top priority for executives. However, new data also shows that when there is a high level of alignment across marketing, customer experience, and digital, companies report 2.4 times higher revenue growth than those that are not aligned. I am. Among these organizations, respondents are 1.6 likely to say that their IT organization is highly aligned with a technology planning strategy that connects and integrates customer-facing and behind-the-scenes functions. It’s double.
According to Forrester’s 2023 Budget Planning Survey, 81% of technology decision makers at U.S. companies expect their organizations’ technology investments to increase over the next 12 months, including nearly half who expect their budget for AI capabilities to increase. It shows that they expect it to increase by more than 5%. Technology leaders must seize this opportunity to transform rising technology budgets into growth-focused business initiatives that are aligned across the company. Forrester’s Planning Guide 2024: Technology Executives provides recommendations on where to invest, optimize, and experiment to enable, create, and scale growth.
Looking ahead to 2023, Forrester recommended a robust approach to technology decision-making to reconcile the hasty investments made during the pandemic years. With a pragmatic approach to innovation, including using artificial intelligence to increase employee autonomy and expand capabilities, he looks to 2024 as his efforts form the foundation for future business growth. The time has come to accelerate. Great technology leaders will also look to create new strategies to further impact customer experience, effectively deliver scope and scale, and adopt new technologies faster. First, next he will focus on three main areas.
- Software that optimizes and unlocks superpowers. Two-thirds of US business technology leaders expect software investments to increase. Advanced software capabilities are a key force in maintaining competitive advantage. Powering daily operations with automation and AI within purpose-built software improves customer experiences, accelerates innovation, and streamlines product development.
- Always up-to-date infrastructure. Maintaining a modern infrastructure is a constant task aimed at optimizing costs, but more importantly, it allows businesses to confidently take advantage of expansion and future business opportunities. In Forrester’s 2023 Budget Planning Survey, more than 65% of U.S. corporate technology decision makers anticipate investments in network infrastructure, end-user hardware, and data center infrastructure.
- Innovating human capital. Artificial intelligence isn’t going to end the demand for talent or trusted partners any time soon. Additionally, 54% of technology leaders expect an increase in organizational investment in staffing, and a whopping 68% expect an increase in investment in services. Investing in a dedicated and fully supported workforce expands both your capabilities and capabilities. Combined with a talented roster of partners, you can quickly build your workforce and manage the investments you need to take advantage of new opportunities and accelerate growth.
Focus on aligning technology efforts with business growth
Aligning for growth means focusing your technology planning and investments on initiatives that create customer value and revenue. This requires technology leaders to be actively involved in the business. He found that 43% of technology decision-makers in digital departments at U.S. companies said they were regularly involved in refining or rethinking business models. By truly understanding business impact, technology leaders can effectively prioritize investments, divestments, and experiments around business outcomes.
Evaluate all technologies involved in the customer experience. Technology impacts every aspect of the customer experience, but only half of technology decision makers at U.S. companies say they are regularly involved in managing customer-facing websites and apps, but 88% of organizations plan to significantly increase spending on customer management and relationship technology. To get the most out of your investment across the board, technology leaders need to be involved. To demonstrate market impact, identify and invest in the customer journey, parallel to the product and service lifecycle, and where key points of true differentiation need to be.
Release technical debt so you can reinvest in the future. The urge to cut costs amid economic turmoil is real and in some cases justified. But Forrester recommends protecting those funds and reallocating them to modernize your technology stack with customer value and business growth in mind. Our research shows that 88% of leading-edge organizations plan to significantly increase their investments in infrastructure and operations compared to 63% of traditional organizations.
Master this AI moment to create the conditions for innovation. Generative AI is currently a “hot topic” in the technology industry, but unlike other emerging technologies, this technology can be applied to almost any business process in any category, new or mundane. Taking advantage of this AI moment to take a “one-to-many” approach will enable you to deliver a wide range of solutions across your operations, enabling your entire company to innovate with curiosity, share and transfer knowledge, and drive change. and create sustainable momentum that enables faster adoption of innovations. over time.
To learn more about technology executive budgets and all the areas we recommend increasing, defending, and reducing investment, check out these resources:
Planning Guide 2024: Technology Executive
Planning Guide 2024: Technology Architecture and Delivery
Also, be sure to register for the August 30th webinar and September 6th LinkedIn Live event to have your questions answered and hear what your colleagues are planning for 2024.
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