The last two years have seen a significant shift in market dynamics, business models, operations, and trade practices, shifts that are likely to accelerate as we enter the next economic chapter, a chapter fuelled by technology efficacy.
The pace of change has challenged leaders to focus their efforts on understanding their business like never before, and while data and business insights are key, leaders are moving to a value-based approach to lead investment in their organisation.
Technology, while accepted as a critical organisational resource is still for many leaders an obscured or detached business function that exists for many businesses as a cost centre. The connection to investment and value generating outcomes of technology have continued to be disconnected from delivering a qualified return on investment.
Why is this the case?
A recent HBR survey among business leaders highlighted this very issue, and demonstrated that investment into technology, requires understanding, transparency, and connection to driving business value. For many organisations, while the broad understanding of technologies role within their business is anecdotally understood, a clear connection between technology and business enablement needs to be established.
Confidence, the business confidence to invest into any area of an organisation needs to be supported by evidence, a connection to value generation, and technology has lagged amongst business functions to create the visibility of value and form a clear part of the strategic agenda.
Amongst the recent data published, its evident that while 92% of leaders value technology, their confidence at just 62% in the effectiveness of their investments in technology, and the link of those technology investments have on creating value and directly influencing profitability and customer success.
A shift in approach is needed, the strategic assembly of technology as an enabler needs to be developed within an organisation to create investment confidence, and directly a budget for technology needs to be established, and not a “technology spend”
With continuous improvement a fundamental new normal following the pandemic, technology investment needs to be considered, strategically deployed, continuously evolving, and linked to a technology strategy that supports business growth.
Aligning technology to organisational growth and business enablement has become a fundamental business priority for many organisations, though the critical shift in thinking around technology needs to move from cost, to investment, from expense to budget, supported by a strong understanding on the link to value generation.
The 2022 priority is clear, bring technology into the light, develop, and bridge the gap of understanding, hold technology to account, and leverage it for success by targeting value-based outcomes that enable the business to grow through those investments.