Major changes in the economy and in the manner that businesses operate across practically every industry are largely a result of changes in enterprise technology. The cost of implementing new features and entire businesses is significantly decreased by the move to the cloud and software-as-a-service models. Microservices and application programming interfaces (APIs) have accelerated the deployment of new technology, and artificial intelligence is now controlling a wider range of business decisions.
Large data sets can now be collected and analysed, which helps businesses gain a better knowledge of their customers and spot chances to enhance their goods and services. Technology-savvy company executives have been able to outperform their less tech-savvy colleagues in terms of shareholder returns by implementing and integrating these technologies at scale across the core of their organizations.
Due to the fact that many consumers today prefer using digital platforms over interacting with real people, customers are pushing businesses toward this technological edge. Consider the financial services industry, where companies using cutting-edge technology stacks can serve, on average, three times as many customers per employee and where digital services created on cutting-edge platforms are a major factor in determining a company’s Net Promoter ScoreSM.
Despite the evident benefits of investing in technology, boards and executive teams still struggle with selecting the best architecture to build on, the best operating model and people to hire, and the appropriate level of technology spending to lead their respective industries. Those choices are difficult due to the ongoing change in enterprise technology. Investors and the media become enthused about the next technology as soon as the previous one reaches maturity. As soon as new fads and buzzwords like web3, the metaverse, hyperautomation, and quantum computing become popular, issues start to surface.
Bain analysed more than 1,000 technology-related initiatives, including new implementations, due diligences, and investments, from client engagements with many of the largest and most dynamic enterprises in the world, to help businesses start to understand which technology trends will matter the most to the future of enterprises.
