A recent KPMG Global Tech Report 2024 showed a majority of respondents admitting that their senior leaders slowed down their progress to adopt new tech. Yet, despite this cautious approach, many businesses are still finding ways to innovate and stay ahead of the competition.
While being careful with tech investments can protect financial stability, it also creates challenges when trying to keep up with the ever-evolving market. However, companies that adopt a balanced strategy, making smaller steps in innovation in or in less risky areas, are proving that progress is still possible.
Companies Showed Signs of FOMO
We typically hear the term “FOMO” (fear of missing out) being tossed around in conversations about younger people and social media, but this mindset can affect businesses too. In fact, 78% of companies report that they are struggling to keep up with the pace of change of today’s tech landscape.
They start to feel that same fear when they see competitors embracing new technologies and gaining an edge. It is because they don’t want to be left behind. They also want to adopt the latest AI tools, shift to digital platforms, or upgrade outdated systems.
This fear of missing out is pushing even the most hesitant businesses to step out of their comfort zone and explore new tech trends—just to stay in the game.
How They Overcome the Risk-Averse Challenge
What keeps these companies’ progress steady is their determination not to let challenges hold them back. Even though their leadership may often be risk-averse, they still have a clear understanding of their goals and the steps needed to achieve them.
So, how do they do it? They:
Rely on what the customers are saying about them
According to the recent findings, high performers in digital transformation are 22% more likely to depend on customer feedback compared to other organizations. When they rely on customer insights, it helps them tailor their tech investments to meet real needs and expectations rather than simply following trends.
Let FOMO influence their investment decisions, but not too much
While the fear of missing out still plays a significant role in shaping tech choices, 82% of companies are choosing investments in emerging technologies like virtual and augmented reality (VR and AR) to stay competitive.
However, the decision-making landscape has evolved. Unlike last year, companies are now seeking third-party guidance, which has become the leading driver of tech choices at 89%, followed by in-house trials and proof of concept (PoC) at 83%.
This indicates that they are now less likely to invest in technology simply because their competitors have adopted it; instead, they prioritize gathering guidance and conducting PoCs before making any commitments.
Know to fix existing tech before implementing new ones
While there is a strong push towards adopting new technologies, organizations recognize the importance of addressing existing technical debt. Recognizing them early helps these companies prevent escalating costs and more complex issues in the upcoming time.
Not only that, it helps new technologies be more integrated, adopted, and utilized effectively.
Conclusions
The KPMG Global Tech Report 2024 shows that companies are trying to balance being careful with new technology and the need to innovate. Many businesses are hesitant, but the fear of falling behind pushes them to explore new options. By listening to customers, getting advice from experts, and fixing old tech issues, they can still make progress. This smart approach helps them stay financially stable while also preparing for future challenges.
