Short-term Technology Focus Jeopardizes High Growth Expectations of Global Companies in the AI ​​age - Latest Global News

Short-term Technology Focus Jeopardizes High Growth Expectations of Global Companies in the AI ​​age

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According to a survey of technology leaders commissioned by Expereo

LONDON — Expereo, the world’s leading intelligent internet company connecting people, places and things everywhere, today announces the publication of an Expereo-commissioned IDC InfoBrief: Enterprise Horizons 2024: Priorities of technology leaders on their digital business journey1which details the findings from a survey of over 650 leading technology companies worldwide, highlighting attitudes towards growth and investment and the key barriers to achieving these goals.

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The survey results published in the IDC InfoBrief show that global companies are optimistic about their business prospects for the next 12 months. 81% of technology leaders2 expect moderate to high growth over this period. The role of technology in achieving this growth has taken on new importance due to the rapid adoption of AI. However, the survey shows that major obstacles must be overcome for technology to fully meet growth priorities, particularly the emergence of a short-term, opportunistic attitude to technology planning.

The role of technology in business growth strategies

When asked about their business outlook for the next 12 months, 52% of global companies expect moderate growth and another 29% expect high growth. The ability of technology to support this growth has never been higher on the agenda. Almost a third of technology leaders (29%) said that growth (increasing revenue and/or expanding into new markets, segments and/or regions) is among their top three priorities driving technology investments in their company. In addition, technology leaders’ top priority is now to contribute to business growth/increasing revenue.

Short-term thinking endangers the growth ambitions of many

However, only 22% of global organizations have achieved full digital maturity – a scenario where a long-term digital business strategy is in place and there is an orchestrated enterprise-wide digital alignment. The reality is that most global organizations are still working on opportunistic and short-term digital plans, with siloed and isolated digital excellence in IT and business units.

In fact, a third (33%) of global companies admit to having a short-term focus, meaning digital strategies and initiatives are business-focused but typically have a short lifespan. Interestingly, more than a quarter of global respondents say that while the CEO supports digital initiatives, they do not work closely enough with technology leaders, putting digital transformation initiatives at risk.

Digital maturity is crucial to meet future challenges

The range of challenges identified in the survey reflects the mix of technical, economic and cultural factors facing technology and business leaders today.

When asked what the biggest risks or constraints to their growth ambitions over the next 12 months were, 38% of global respondents cited geopolitical issues as having a potential impact on their business or technology providers, followed by inflation (34%), economic uncertainty (32%), uncontrolled spending in business units (31%) and performance of networks/connectivity worldwide (30%).

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When asked about the most serious challenges in implementing digital growth initiatives, the complexity of IT integration (41%), partner skills (40%) and a lack of regional expertise (35%) were cited.

Increased automation, cost savings and efficiency improvements as well as more innovation are considered key factors for growth

When asked how their organizations plan to achieve global growth over the next 12 months, nearly half (49%) of respondents cite increased automation as the most important driver, with a further 60% agreeing that automating business operations and processes is now considered important or extremely important. Other growth initiatives include a greater focus on cost reduction and efficiency (44%) and increased innovation (39%).

AI is the world’s number one technology investment priority

42% of respondents cited AI as their top technology investment priority, just ahead of security (37%) and cloud or multicloud networking/connectivity (35%). 31% of respondents globally believe AI/ML will be critical to meeting business ambitions, with a further 60% saying it will be important.

Ben Elms, Chief Executive Officer at Expereo, commented: “This year’s Enterprise Horizons report brings encouraging news: there is growing optimism about global growth and the critical role of technology in driving this progress is widely recognised. Many organisations want to accelerate their path to the future through digital transformation, but the journey there is not yet well underway for many. It is imperative to close the gap between the one in five global organisations that are fully digitally mature and the rest.

To move quickly into the future with digital transformation, companies need a comprehensive, long-term 360-degree digital strategy. This strategy must encompass every aspect of the technology stack – from AI/ML, automation and analytics to cloud performance, security, network visibility and connectivity. Such a strategic approach is essential to ensure the performance, agility and scalability required to sustain high growth.”

The full IDC InfoBrief can be found at: https://www.expereo.com/whitepapers/enterprise-horizons-2024

About Expereo

Expereo is the world’s leading intelligent Internet company, connecting people, places and things everywhere. Solutions include Global Internet, SD-WAN/SASE and Enhanced Internet. With its extensive global reach, Expereo is the trusted partner of 60% of the Fortune 500. The company operates corporate and government sites in more than 190 countries and can connect to any location worldwide. The company works with over 2,300 partners to help customers improve productivity and equip their networks and cloud services with the agility, flexibility and value of the Internet with optimal network performance.

Expereo was acquired in February 2021 by Vitruvian Partners, which acquired a majority stake from Seven2.

1 Document No EUR252162924, May 2024

2 Document No. EUR252049924, April 2024

View original version on businesswire.com: https://www.businesswire.com/news/home/20240611110682/en/

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