At SPR, we are continually analyzing trends using a variety of methods. We capture what we hear in daily business through customer interviews; gather market data through formal surveys, such as this 400-person survey; and note emerging and newly adopted technologies for their impact and sustainability. Some of the trends are near term, meaning companies can capitalize on them right away. Others aren’t as widespread or are still evolving and therefore, can’t be monetized just yet.
As you will read in this report, our survey uncovered 5 themes that make up the technology leadership forecast for the near future, the next 12 – 36 months. These themes separate the leading IT organizations from IT organizations that are lagging behind. What’s more exciting, we’re seeing these same trends in conversations with our clients. It’s encouraging to find that what we’re hearing is backed by actual data, and vice versa.
In order to advance, you must reinvent. And to do so, you must observe what’s going on in the market, reflect on it, and plan to move forward. As you read about the themes in our 2022 Technology Leadership Forecast, consider how you can apply them to your business, to help you strike the balance between the ever-evolving technology landscape and shifting user expectations.
5 Themes for Technology Leadership in 2022
Survey data revealed 5 themes for the next 12-36 months. Here's what IT leaders are doing to set themselves apart from those IT organizations that are lagging behind.
Role of IT: Control Shift
IT leaders are bulldozing their way to the decision-making table thanks in part to a recent worldwide shift in priorities. Spurred out of necessity, perhaps, but nearly all parties agree: IT leaders are integral to identifying new business opportunities in today’s digital-first environment. As Kevin McMahon, SPR's Executive Director of Emerging Technologies, puts it: "Every business is a software company; some businesses just don't realize it yet."
With much of today’s business driven by – or dependent on – software, C-level executives are asking questions beyond network availability and basic help-desk ticket needs. They want to know about technology strategy as it relates to business goals, finding new products and revenue streams, and supporting business partners.
In SPR’s survey of IT executives, we asked what they see as the role of their IT organization. Companies forging ahead – identified as leading IT organizations – recognize and accept this new trajectory toward strategy. They ranked “identify new business opportunities” as the #1 role of their IT organization, as opposed to lagging companies that ranked it #12. The #1 priority for lagging organizations was “technology implementation” – essential, but not always where innovation happens. This disparity shows a marked difference between organizations that are looking to the future, and those that are treading water.
Aligning to deliver better
To ensure alignment, the strategy conversation must go both ways. Both business leaders and technologists must be involved from the start to elicit productive communication. Technologists bring ideas to the table that may improve business processes; similarly, business users are involved in technology delivery from the start, so when it’s implemented, they understand what’s coming. This helps improve the adoption process.
“Communication is the biggest key to ensuring everyone is on board and aligned to the initiative,” says Mike Saccotelli, SPR Solution Delivery Director. “Show them how their lives will be better. Otherwise, they could become blockers to the progress.”
Just because different parts of the organization are doing different things, doesn’t mean everyone shouldn’t move in the same direction. Leaders must disseminate a consistent message by using champions and team leads to share information across all areas of the organization.
The Great Experience
In today's market, user and customer experience make the difference when providing a superior product or service. The more an IT organization can identify, understand, and respond to user needs, the more IT can strengthen the company at its core. IT organizations are providing systems and support necessary to their business’s functionality and revenue.
In our survey, we looked at the top tech initiatives for IT executives, and user experience and design came in third overall for leading organizations, where it didn’t make the top 5 for followers. Leading IT organizations invest in UX and incorporating user research earlier in the software development lifecycle.
In our survey of IT executives, leading organizations are much more effective (59%) at responding to customer needs in a timely manner. This is significantly higher than lagging IT organizations (37%). The customer experience, whether internal or external, drives technology. This can’t happen, though, unless there is a deep understanding of the user that stems from open communication and ongoing dialogue with users.
The Omni-View
A key component to creating an exceptional experience is to have a holistic view – a resounding theme when talking with industry experts. Regan says this omni-view allows for a better end product and user experience when 1.) Creating a solution for a customer, and 2.) Working on an internal system. This new mindset is a shift away from doing things in a siloed fashion. There's open communication, open collaboration, and, even, a shift at the leadership level as people recognize the need for a unifying vision that people can rally around.
Cross-functional representation on teams helps encourage action on user feedback and productivity. “When teams are talking every day, there is better chance their time is being spent efficiently,” says Justin Rodenbostel, Exec. Vice President of Delivery Management, SPR. “People who need help get help, and leaders are aware and can respond to any blockers.”
And, Rodenbostel adds, as users share their needs, it’s important to keep the feedback loop short, particularly as different functions come together on initiatives for the user experience. “Radiating information within and amongst teams ensures teams are working toward a similar goal – meeting the user needs.”
In The Revenue Driver’s Seat
Listening to the voice of the user helps organizations not only quickly remedy issues, but also identify new products before users ask for them. With this rise of product-centered culture and design thinking, there has been a shift away from siloed, centralized IT. “Organizations have moved IT to be more closely aligned with the business units,” says SPR’s Justin Rodenbostel.
To leave behind the perception that IT organizations are cost centers, it’s important to manage the IT costs associated with “doing business as usual.” Successful teams start by reducing the cost of IT, discovering how their work can be seen as a value-add, then exploring innovation with a cross functional team of IT and the business that will lead to revenue generation.
In our survey of IT executives, leading IT organizations agree that their IT organization is integral to developing new product and streams of revenue. This revenue generation is the result of cross-functional representation among team members and shared accountability. By applying this model, teams establish a shared definition of success.
Reduce IT Costs
While there are seemingly countless budget-slashing ideas, here are two ways SPR experts say to reduce IT spend.
- Use the cloud the right way. The once popular lift and shift – where a large application is moved to the cloud still in that monolithic state – does not achieve all the value the cloud has to offer. Rather, IT organizations will have a business differentiator and see greater value when they take advantage of cloud native capabilities appropriately. From a cost reduction and value extraction perspective, think of lift and shift as a slight evolution, whereas building cloud-native solutions that use the benefits exclusive to the cloud, are revolutionary.
- Use your data. In our survey, IT executives overwhelmingly selected data analytics and business intelligence as the number one area for a technology organization to allocate resources. This is continuing a trend we’ve seen in the industry over the last decade or so, with a high level of focus on building data warehousing and data store technology.
Security as a Top Priority
Security is a top priority for IT leaders going into the next 12 months.Where once it was solely addressed by IT teams, our survey shows it’s now being talked about throughout the business. To reiterate from Theme 1, every company is a software company, even if they don’t realize it yet. When companies shift to understand that their core assets are the data and information flow from their software, it also means they need to protect those assets.
“The power has shifted back to IT, as customers of SaaS companies demand more than simply having a platform that works. They now want platforms that are secure – that don’t leak their data to the entire internet.”
David Kinney Client Solution Principal, SPR
In our survey, 58% of respondents rated cybersecurity a top skill required to execute the technology strategy for IT organizations. However, resource allocation for cybersecurity came in fourth behind data, cloud, and digital workplace technologies. This shows a possible discrepancy between what IT leaders say is a top priority, and where companies are putting time and dollars.
Level of maturity
While IT organizations may have the most knowledge and power within the business when it comes to security, many over-estimate their security maturity, according to Matt Konda, CEO, Jemurai, a security consulting company.
“Sometimes the more mature a company thinks it is, the less mature it really is,” says Konda. “A challenge with security is there are so many different areas and issues. You could be really good in one area and not even aware of another.”
The reality is, even when all the proper security tools are in place, companies are routinely hacked, says Konda. Even an investment in many such tools will not guarantee a high level of security maturity. Start by including security in your planning early on and implement security strategically. While security costs may seem steep, the cost of a breach—in both dollars and customer confidence in your company—can be far greater.
Competing for IT Talent
In July 2021, 4 million Americans quit their jobs, and resignations have remained abnormally high for the past several months. Who is resigning?
- Employees between 30 and 45 years old
- Employees in the tech industry – 72% of tech workers say they will quit in the next 12 months
In 2020, organizations furloughed or laid off employees in record numbers; now these companies are in position to re-hire again. Couple that with remote-first workforces and a high demand for IT talent, it is widely acknowledged: talent is at an advantage. Talha Basit, Chief Technology Officer at Deep6 AI, says big companies will pay upwards of a half million dollars for top talent and, most likely, your IT organization can’t afford that. If you can’t compete on salary, focus on what your company does best – perhaps providing interesting projects, work autonomy, or career growth.
“Transparency and sunlight are what engineers are looking for. If they aren’t getting insight into what you’re looking for, they’ll leave.”
Talha Basit Chief Technology Officer, Deep 6 AI
While the competition is fierce, IT leaders are optimistic about their ability to recruit the best technologists. In our survey, IT leaders overwhelming outranked followers, 68% to 50%, in their effectiveness attracting top-tier talent. IT organizations beware, though, says Basit. This confidence could mean there’s a disconnect between what leaders think and what employees think when it comes to attracting and retaining talent.
“After salary requirements, candidates want to know what they will be doing,” says Stephanie Lyons, Recruiting Manager, SPR. This is where great companies can thrive in the competition for great talent, by showcasing the type of work environment that sets them apart. “People want to build, develop, solve cool problems, attain achievable goals, and advance their careers,” says SPR’s Justin Rodenbostel. “Companies need to attract the best employees by putting people in a position to be reasonably challenged, but in a way that they are supported.”
As shown in this report, leading IT organizations have discovered distinct ways of operating that set them apart from IT organizations that are lagging behind. These leaders innovate for the future, are effective at achieving goals, adapt well to change, and consider themselves partners to the business.