5. Gain complementary revenue streams with pay-as-you-go pricing
Technology companies need to explore consumption-based business models. Recent research from EY shows that more than 90% of TMT companies already derive a portion of their revenue from the Anything-as-a-Service (XaaS) model, with subscriptions becoming mainstream. I did. Companies cite market trends, competitors, and additional revenue generation as reasons for migration. Customers want flexibility in how they pay, with some preferring the predictability of per-seat subscription payments and others preferring the flexibility of being able to scale up or down with usage-based payments. In the market, some challengers are using pay-as-you-go pricing to displace slower-moving incumbents. Therefore, to capture new revenue streams and protect market share from aggressive challengers, technology companies that have moved to subscriptions must also be prepared to adopt pay-as-you-go business models.
6. Optimize your revenue with analytical tools
Tech companies have invested in analytical tools to increase supply chain visibility and detect warning signs early to reduce risk and prioritize spending. But data analytics can not only help optimize supply chain processes, but can also be used to optimize revenue. For technology companies, this is a very attractive proposition. They often offer data-rich products and software products have low marginal costs, making price a key variable for improving results. Analytical tools can be deployed to calculate the outcomes of different strategies under different scenarios regarding inflation, geopolitical uncertainty, and other risks. It also helps companies consider pricing for a myriad of different business models.
7. Invest in the edge ecosystem to improve operations and experiences
Tech companies will need to address the need to invest in distributed computing next year. As the Internet of Things (IoT) expands, businesses need to process large amounts of data from contactless payments, robotic manufacturing, smart home sensors, self-driving cars, and more. When rapid real-time responses are required, moving this data to and from large enterprise cloud platforms for processing is extremely costly and time-consuming. Enterprises need intelligence within their networks, at a level where data is collected locally at the edge of the network. Edge computing reduces response times and changes operations at the local level. However, a new IT architecture is required to ensure operational security and resilience. Investing in the edge ecosystem can help streamline processes and improve the customer experience.
8. Cyber, cyber, cyber…ensuring data protection
As in previous years, investing in cybersecurity will be a top priority in 2023. Data volumes continue to grow. Enterprise networks grow in size with edge computing and hybrid work. Geopolitical tensions increase the number of villains. Increased regulatory oversight will also increase fines for failure to protect data. New technologies such as quantum computing and blockchain are changing the threat and security parameters. As the risk of data breaches increases, technology companies continue to build business models around the collection, transfer, and analysis of customer data. Data protection, including security, privacy and transparency, must be a key element of any customer proposition. Technology companies should work with partners and vendors to pilot the latest tools and technologies to protect infrastructure security, product security, and data protection.
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