Technological Priorities For Digital Business and Efficiency

As it cannot be otherwise, the relevance of technology in organizations continues to increase. In fact, at Penteo, we have identified that companies whose CEO has a digital vision and places the digital strategy and culture at the center of the organization successfully advance in digital transformation. 

As the primary trend for 2022, the focus on digital business stands out.

38 % of companies say they will attract new business thanks to technology. This implies that those technologies around the customer experience will continue to gain prominence.

Outlook 2022 For Digital Business

The budget perspectives are very favorable for 2022. The forecast is for an increase of 7.4% in the 2021 budget. 

This increase occurs both in CAPEX and OPEX, although slightly less in operating expenses. They are still positive data in both cases.

However, the projects present in company budgets do not stand out for encompassing ambitious business transformation changes but instead have an evident focus on the efficiency of digital business.

CAPEX for ERP and Data, and OPEX Grows in Security and SaaS

About CAPEX, the item that capitalizes the most investment is the ERP dedicated to production and logistics processes, representing an average of 13% of the total cake. 

Advanced Analytics stands out with 10% of the investor pie. As for OPEX, the year-on-year growth expense (2022 vs. 2021) is led by Security, SW Licensing (the result of investments in SaaS solutions from previous years), and Cloud infrastructure (also the result of investments in migrating Datacenters to the cloud).

The Investment Pursues Efficiency and Data Quality

The acquisition is expected to provide, on the one hand, efficiency and cost reduction and, on the other, an improvement in the quality of data to make strategic decisions and anticipate customer needs. This focus on data quality contrasts with the subordinate role of the data management strategy as a business priority.

There is a particular risk of starting the house from the roof since we see that the budget allocation is very focused on the technological platform dedicated to data analytics. Still, it may be left without the unwavering support from the Management.

The Team Grows, Although Talent is Scarce

As for the team will be a year of hiring; most companies will increase IT staff, by an average of 12%. It is mainly committed to internal talent to develop the planned projects successfully. However, we observe a growing difficulty in attracting and retaining talent since specific profiles are scarce in the market.

In conclusion, 2022 will be exciting in terms of the availability of resources and ambition to execute technological projects. But it will be necessary to focus on culture and digital business and avoid working in silos to complete all the projects. 

In any case, the technology sector will be significantly favored by this expected dynamism.