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With inflation rising and fears of an economic slowdown, technology leaders need to anticipate that they will face increased scrutiny of IT spending and a greater drive to deliver on the company’s value. Unlike the pandemic response, which required major investments in the expertise that underpins new trends in technology, digital experiences and work from anywhere, responding to the current economic headwinds will require optimization and streamlining while maintaining resilient and modern environments, all without compromising the company’s future-proof technology approach.
To help expertise structure leaders assess their overall spend and drive the best corporate value, Forrester has developed a new document, Planning 2023: Expertise Architecture & Delivery, offering tips on where to increase and defend investment and where to reduce investment — and where some experiments may work well in 2023.
increase Or shield: charge Portfolio optimization and explanation Investments
With increased financial pressures, charge optimization and portfolio rationalization need to come to the forefront of technology leaders’ priorities to increase or protect investments. This includes applications such as cloud cost optimization, integrated utility building frameworks, core business functions that protect assets and people, resilient operational infrastructure, disbursed records platforms, intelligent document extraction, and vertically aligned IoT and multi-use cases. We advocate that technology leaders drive or protect investments in:
- tools and technologies that optimize cloud pricing
- Holistic and integrated application launch systems
- Primary business purposes and lines that provide protection to commercial properties and U.S.
- Operational and resilient infrastructure
- Globally distributed information platforms featuring multimodal structure
- intelligent document extraction that serves vital business processes
- Vertically aligned area and use cases of IoT and smart buildings for any workplace
reduce or avoid: obsolete or harmful investments
In a difficult financial environment, definitive applications become obsolete or detrimental financing. For chief technology architects and technology leaders across infrastructure and operations, construction, business applications, and records, this includes virtual desktop environments, individual DevOps startup tools, large and growing resource roles in core business technologies, declining operational applications, monolithic element information options, process discovery tools, and personal 5G networks. In particular, we recommend that technology leaders reduce or halt investments in:
- Old-fashioned virtual desktop environments
- individual DevOps applied sciences that require manual integration
- broad purposes of emerging capabilities in core business know-how
- Operational applied sciences in decline
- Monolithic, centralized, and element logging options
- discovery equipment in ways that require huge amounts of components to run
- emerging more indoor 5G networks
Major Emerging Applied Sciences Price Experimentation
If the economic outlook worsens, technology leaders will be tempted to respond to calls for price cuts or restrictions by reducing investment in growing technology. Some warnings and reductions in investment are crucial, but a complete withdrawal would be a mistake, because it is these investments and experiments that often sustain the company, create innovations that are challenging to replicate, and outperform competitors with sustained aggressive differentiation. While there is a steady stream of emerging technologies to consider, Forrester sees promising growth and cost in these areas. In the next fiscal budget cycle, technology leaders should continue to rely on assessing these technologies (and allocating price ranges to fund proof-of-concepts) to assess organizational fit:
- Cloud-native computing that enables agility at scale
- cutting-edge intelligence that brings analytics to the consumer without delay
- TuringBots that write code on their own
For more details on what you should invest in, divest from, or continue experimenting with, read Forrester's planning guides here.
This post was written by Vice President, Chief Research Officer Chris Gardner and originally appeared here.
