Despite all of the money companies are spending on new technology, many struggle to gain value from it once implemented, according to research from PwC. In fact, the survey found that the vast majority of executives – around 88% – said that achieving measurable value from new technology is a challenge.
“In thinking about technology investments, some executives may lose sight of the ultimate business outcome objective and end up tempted by the latest bright, shiny objects,” PwC said.
In addition, the research found that embedding new technologies into their business models is the top strategic priority for executives over the next three to five years. To get there, 59% of respondents said they will invest in new technologies such as cloud solutions or artificial intelligence in the next 12 to 18 months. Nearly half reported a plan to invest in generative AI specifically.
The also study found that companies are more likely to invest in upskilling initiatives to train employees in new technology. Sixty-four percent of the respondents indicated plans to make such investments.
Future in Tech
Of course, any kind of transformation faces challenges. In this case, three-quarters of the executives recognized employee fears about being replaced by technology as a major challenge. Other barriers included updating operating model to support the new vision (85%), covering the cost of new technology (85%) and training the workforce on new tech (84%).
To combat such issues, PwC recommends keeping business outcomes in mind and prioritizing data, having a clear plan, and engaging and training employees when implementing technology.
“Leadership teams should be more selective, and skeptical, about major tech initiatives,” the report suggested. “Before launching a new initiative, they should have a very clear idea of how a technology will create value — for example, streamlining processes, creating efficiencies, enhancing the customer experience or boosting sales.”