Technology continues to advance rapidly, not just incremental progress but dramatic changes in the discipline itself. Only with time can business leaders know for certain which emerging technologies will have staying power and which will fall short of the initial hype. Being an ardent believer in the game-changing potential of technology is not enough. Organizations face sizable adoption hurdles, severe skill shortages, and pervasive security concerns while attempting to position their enterprises to innovate, differentiate and better understand and serve customers.
Due to our broad client and industry base, Liberty Advisor Group has a unique view of how and where companies deploy their information assets to achieve their business objectives. Coming into 2023, we are seeing real differentiating capabilities go mainstream with our clients and their industries.
2023 Tech Trends #1: New and Renewed Focus on Becoming Cloud Digital
Cloud computing has long ceased to be a passing trend. Cloud platforms and services are now the norm. That said, the magnitude and speed of the shift to cloud delivery models have been staggering. Over the past few years, businesses have pushed toward the cloud, and that trend will only continue in the coming years. According to a Fortinet study, about 39% of respondents already run at least 50% of their workload on the cloud. In the upcoming 12 to 18 months, another 58% of respondents stated they planned to run that much workload in the cloud. Organizations’ shift drives this growth to digital business models and the need to speed up innovation.
With the current economic uncertainty, leading companies focus on extracting the maximum business value and benefits associated with cloud providers: reduction in manual processes, reduction in production errors, reduction in extraneous costs, etc. Additionally, we see organizations using cloud solutions to ensure a more sustainable society by partnering with providers that have Environmental, Social, and Governance (ESG) programs in place. As reported by MDPI, a research group, moving to Infrastructure-as-a-Service (IaaS) platforms can reduce carbon emissions by up to 84% and energy consumption by up to 65%. Notably, cloud providers have largely addressed previous reservations stemming from switching costs and migrations efforts by offering tooling and solutions to ease the burden of migration.
2023 Tech Trends #2: Capitalizing on Digital Gains: Data, AI/ML, and the Emergence of Digital Twins
Businesses are expected to produce twice as much data within the next five years, and that data is no longer just from corporate applications. The continued explosion of data is now being driven from the field by sensors, mobile devices, social media, etc. This data is essential for understanding behavior, but it’s also crucial for making more intelligent business decisions. Innovative companies that treat data as an asset and have a research and development vision are capitalizing on data to unlock insights, drive processes, make better decisions, improve efficiencies, respond faster and uncover opportunities.
The commoditization of these technologies is the tailwind helping drive mainstream awareness of artificial intelligence, machine learning, and advanced data analytics. What this means for business leaders is that organizations will no longer have to hire a data scientist, integrate, and index data, write AI algorithms, train AI models, and analyze results for bit fit. AI is being built into mainstream software, providing tools to drive processes and unlock previously hidden insights. In late 2022, AWS, Amazon.com’s cloud business, announced vertical value-added ML/AI applications for supply chain management with many other core functions on a near-term roadmap.
Advanced analytics don’t work in silos; you must break them down. There are two major headwinds for companies to this trend: they don’t treat their data as an asset, and most of their IT spend (>85%) is on maintenance (“RUN”) instead of building new capabilities (“BUILD”).
Leaders understand the need for experts in math and statistics that underpin AI/ML models, but they also recognize the need to blend these skills with business knowledge. Ask yourself, “Do I trust the data in my systems or the values in my reports?” before attempting to operationalize your data assets with advanced tooling any further.
2023 Tech Trends #3: Shifting Assumptions will drive Different Security Models
Organizations are struggling to protect what is arguably their most important asset: information. This is where the value is, and that’s where the danger lies. With new types of technology come new types of security concerns. Threat vectors will have weaknesses that people will try to exploit. Organizations are trying to stay ahead of the curve by anticipating these new concerns and putting measures in place to protect their enterprise.
Security is a major adoption barrier and requires focus beyond IT. Previously securing the perimeter of an organization was enough. Today with the shifting workforce driven by the pandemic, security needs to be where the workers are working. The network no longer has a defined edge, it’s amorous, and everyone is essentially working from “Airport WIFI.” Innovative companies are starting to deploy security at the application and endpoint levels, and zero-trust models are being adopted to protect the enterprise.
We also see more investments by providers to help protect organizations through AI/ML-enabled tools like endpoint protection and security data lakes. Leaders treat security as a business imperative year in and year out, investing in security technology and developing cybersecurity skills throughout the organization to protect information assets.
Positioning for Competitive Advantage
Leaders recognize the magnitude of technological change impacting their organizations. Liberty Advisor Group has a team that wants to put your ambition and our experience to work for tangible results. If you want to be at the forefront of these trends, We have developed real-world solutions that impact your business while laying the foundation for the future. Contact us to learn how we can help your business thrive in 2023 and beyond.