LONDON, Nov. 23, 2022 /PRNewswire/ — As the world moves into a potential economic downturn, technology leaders must help their organisations adapt through emerging technologies while building a protective layer against the risks posed. To prepare leaders for what’s to come in 2023, global IT research and advisory firm Info-Tech Research Group has released its annual technology report. The firm’s 2023 Tech Trends report reveals seven data-driven trends and findings based on insights from hundreds of global IT professionals, analysts, and industry experts.
‘In an uncertain and changing economic climate, today’s CIOs need to focus on the ‘crocs closest to the canoe,” says Ian Tyler-Clarke, Executive Councilor, UK. ‘Pulling down the financial shutters is the wrong approach. CIOs must consider investments in the right IT projects to help maintain position against the competition and protect the IT department.’
The report’s survey received 813 responses from industry professionals, with over 90% of respondents working in IT departments. The underlying metrics for the 2023 report are diverse, with insights from 16 countries and regions, including Great Britain, Germany, Netherlands, Canada, and the US, as well as 15 industries including government, financial services, professional services, manufacturing, education, healthcare, telecom, and retail.
‘Last year’s report focused on the capabilities organisations would need to compete in a digital economy,’ says Brian Jackson, Research Director and one of the principal research leads for the 2023 Tech Trends report. ‘For this year, the 2023 Tech Trends report considers how technology leaders can explore new technologies while protecting the organisation from the risks posed. Our research insights expand on the previous year’s trends, focusing on how IT can enhance existing capabilities and create new ones while simultaneously considering the volatility of a world dealing with several major crises.’
The survey findings, coupled with exclusive analyst research and expert perspectives, are representative of the wider market and will help to shape CIOs’ digital strategic projects for 2023.
‘Looking at the trends identified this year, I believe some are more important to the UK region than others,’ adds Tyler-Clarke. ‘Although the metaverse is still an emerging technology, data and AI are intrinsically linked and essential to understanding your business better and making smarter decisions. However, in the changing economic climate, CIOs must prioritise resources and investments in critical areas. Recession-proofing should be the first focus, as cutting back on inefficient spending while driving emerging technologies will help keep you ahead of the pack. At the same time, maintaining a keen eye on security is imperative, and the drive to Zero-Trust security should be high on that priority list.’
Info-Tech Research Group’s 2023 Tech Trends Report (CNW Group/Info-Tech Research Group)
2023 Tech Trends
The following seven tech trends and findings have been identified by the firm for the coming year:
1. The Metaverse – Marketing pitches and media headlines have left IT leaders wondering if they should be running a proof of concept on VR collaboration in 2023, or perhaps staking a claim to virtual real estate. Info-Tech views the metaverse as a convergence of mixed reality, artificial intelligence, immersive digital space, and real-time communications that stack together to create metaverse experiences.
The metaverse as a solution to hybrid work is still a far-off concept for most firms, with 63% of organisations having no plans to collaborate in virtual reality, such as using headsets that block out the real world. Only one-quarter of firms are conducting a proof of concept or planning to do so. Slightly more than one in ten say they are either scaling up or already seeing widespread organisational adoption.
2. Generative AI – Generative AI is a type of semi-supervised machine learning that uses neural networks to create new content or interpret complex signal information. By being trained with a large amount of content, models can be made to generate new works similar to what people would create.
According to Info-Tech’s survey and research, AI will receive the most net-new investment by organisations by the end of 2023, with 35% of organisations indicating they have already invested in it and 44% planning to invest next year. With a 9% change between committed and planned investment, AI leads all technologies, followed by data lake at 5% and data mesh at 5%.
3. Industry-Led Data Models – The promises of big data have been a significant focus for the entire 21st century, giving rise to an industry of data collection and analytics services. After AI, the two technologies gaining the most momentum in new investment this year are data lake (or lakehouse) and data fabric or mesh, with both seeing a 5% increase in the number of organisations planning to invest in 2023. These platforms facilitate better access to enterprise data and enable real-time reporting.
According to the survey, most organisations will look to develop their own data analysis, with 41% building their own data analysis with in-house staff and another 28% both building and buying tools to support analysis. Although organisations want to put their own industry expertise to work in designing analytics, building the tools themselves will likely lead to a missed opportunity to gain the best-in-class approaches honed by technology vendors. IT leaders should keep this in mind when considering where to spend resources in 2023.
4. Sustained Digital Processes – Organisations are still investing in digitalising tasks and processes. They have also learned that digital transformation doesn’t have a definite final state but is instead an evolutionary process without an end.
Based on survey data, more companies may now be through the initial rush of digitalisation and into the next phase of sustaining their efforts. For example, last year more organisations (eight in ten) indicated they had digitalised over 20% of their processes. In this year’s survey the number is down, with seven in ten respondents saying they digitalised between 0% and 20% of their processes in the past year.
Sustaining momentum will require effort, as well as new tools and ways of working.
5. ESG Analytics and Reporting – It is expected that in 2023, public companies will be required to report on their carbon emissions by financial regulators in places like the UK, EU, US, and Canada. However, many organisations are still behind on this issue even though various regulators around the world are either implementing those reporting requirements or moving closer to doing so.
Less than one-quarter of IT professionals say their organisation can accurately report on the impact of its ESG initiatives, and 43% say their reporting on impacts is inaccurate. Reporting accuracy was even worse for reporting on carbon footprint, with 46% saying their organisation could not accurately report its carbon footprint. IT leaders will need to improve on this front to be compliant.
6. Zero-Trust Security – Zero trust means full access at the bare minimum. This approach is especially important as we come off a series of software supply chain attacks over the past couple of years.
Slightly more than half of the respondents said it is likely or very likely that a cybersecurity incident will disrupt their business in 2023. Disruption from new government-enacted security regulations was the next most common concern, with 40% saying it is likely or very likely to disrupt business.
As attacks increase in frequency and impact, organisations are turning to the concept of a zero-trust network to defend against threat vectors.
7. Recession Preparation – In addition to the new technologies that could yield innovation and all the subsequent risks that IT must work to mitigate, a financial risk to the IT budget looms for 2023. This risk reduces the degree to which IT can pursue growth opportunities and offer protection from regulatory burdens and bad actors.
Despite the negative signals, most IT professionals expect their budgets will increase in 2023. Fifty-five per cent of respondents anticipate a bigger budget next year; 28% expect an increase between 6% and 15%, and another 8% expect an increase between 16% and 30%. Interestingly, IT professionals in the US are more optimistic than their international counterparts, as 70% expect a budget increase in 2023 compared to 55% for the global average.
The 2023 Tech Trends report also includes insights in the form of case studies from technology experts at organisations such as Cisco, Walmart Canada, Glitch Goods, the Children’s Specialized Hospital, Albemarle Corp, and Edgeless Systems.
With offices in the UK, Australia, Canada, and the United States, this report will inform the firm’s next major global release, the upcoming CIO Priorities 2023 report. This resource, set to be published in early 2023, will take a deeper dive into the recommended capabilities that will help organisations respond to each emerging trend.
Download and read the full 2023 Tech Trends report for more insights for the year ahead.
About Info-Tech Research Group
Info-Tech Research Group is one of the world’s leading information technology research and advisory firms, proudly serving over 30,000 IT professionals. The company produces unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. For 25 years, Info-Tech has partnered closely with IT teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organisations.
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SOURCE Info-Tech Research Group