Technology CEOs should consider nine disruptive forces that are impacting businesses

The accelerated pace of business disruption is being triggered by the impact of new technologies combined with the challenges and opportunities of creating a connected experience, which are bigger than ever before, according to a new PwC report, The new digital ecosystemreality: Nine trends rewriting the rules of business. The nine trends outlined in the report are too inter-related to be tackled with an independent strategy.  PwC recommends two complementary strategies, one targeting the short-term trends and the other targeting long-term challenges.

Trend number 1: Disruptive innovation

Radical shifts in technologies translate to radical shifts in business models. In order to prepare, technology CEOs should consider a variety of steps, including: developing an appropriate innovation strategy that ties in with the corporate vision and company capabilities; determining the best ways of fostering and sustaining organic innovation; identifying opportunities for growth; determining strategic investment bets and identifying appropriate partners for highly integrated digital ecosystems.

Trend number 2: Managing cost and complexity

According to PwC, in terms of IT complexity, more than half of all companies are turning to the cloud to reduce expenses. They must also adjust their operating model to increase agility through focus on innovation both in technology and processes, in order to lay the foundation for a more-efficient cost structure. Additionally, companies are using technology to get better information faster and cheaper through using social analytics within the connected experience they have with customers and creating a connected experience with suppliers and partners through digital ecosystems.

Trend number 3: Convergence

The convergence of consumer and corporate capabilities has forced most companies across industries to become technology companies. Many companies will need to increase the pace of their customer communications in order to meet these increased expectations.

Trend number 4: Consumerization of IT

Employees have become accustomed to the ease of accessing information online, whether through mobile devices, tablets or personal computers. Companies will need to develop enterprise applications that are easier to learn to improve productivity and those that are easier to use on smartphones and other mobile devices.

Trend number 5: Changing dynamics between developing and developed countries

Technology companies will likely be looking to emerging markets for new business opportunities. Therefore, technology CEOs should think about rationalizing their global operations and simplifying and standardizing business processes and products so that development can be applied across any region, and also tailored for a particular region.

Trend number 6: Social media

According to PwC surveys, 90 percent of technology companies are focusing on strengthening relationships with customers and clients by increasing engagement and 84 percent are enhancing their focus on social media in search of new customers. Companies can use social media to interact on a regular basis, to deliver information and advice, and thus potentially increase the value of the experience.

Trend number 7: Data explosion

Technology companies must be able to accommodate input from social media with input from sales results in order to harness the broad flow of information. This requires developing a variety of systems, for example: data warehouses, analytic tools, storage systems, and business intelligence.

Trend number 8: IP and data protection

Being able to compete in the global world of technology requires maintaining a balance for technology companies. Companies need to ensure that their systems are accessible to their friends (i.e. employees and business partners) and unavailable to their competitors.

Trend number 9: Changing political and regulatory landscape

Technology CEOs have already been subjected to extensive regulatory conditions, therefore they must be prepared to track manufacturing and product information, and to be audited on a regular basis.

To address these nine trends, PwC recommends that technology companies focus on extending their own digital transformation across their business units, including manufacturing, supply chain and finance.  Digitization supports automation, which decreases response time and increases the accessibility of information which in turn enables companies to be more agile and able to respond to change faster.

More information on managing customer relationships can be found at www.CRMindustry.com