Exceeding Digital Expectations


It is no surprise the high tech industry is a leader when it comes to vision-driven digital transformation. However, our data highlights stark vulnerabilities in the majority of high tech companies who fall outside the vision-driven quadrant.

There is little room for error during the digitalization process, and this is especially true for players in high tech. For companies that execute their digital transformation sub-optimally, they risk falling behind the pack or even dissolution. High tech CEOs must be quick to engage, developing and applying a digital transformation plan to remain relevant and competitive.

>Digital Transformation in a Highly Competitive Market

Top Concerns for CEOs in the High Tech Industry


The high tech industry is an exceptionally competitive environment, and this presents a range of concerns for CEOs. Here are the top seven concerns that will need to be addressed by high tech CEOs in the digital era.

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Improving the Customer Experience

Customer-centricity is a pillar of the high tech industry. For players who fail to center their operations around the customer experience (CX), they risk falling behind intense external competition. Likewise, high tech companies who prioritize the customer experience (CX) are set to reap immense rewards.

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Dynamic Product Environment

Non-linear progress around technologies and software is constantly “rocking the boat” in terms of product- service portfolios. A breakthrough from a few months ago can be quickly forgotten as product-service development lifecycles are so short in this industry. High Tech industry players must invest heavily in research and development to innovate in parallel with leaders in the space.

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Short Product Lifecycles

The reality of short product lifecycles means significant investments in research and development can go to waste, especially when other companies can execute a faster go-to-market, and with equivalent or better products. Copycat product-service development is commonplace among disruptors, meaning “new” innovations do not remain new for long. This presents a dilemma around research and development priorities, as well as securing a return on investment in the long term.

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Migrating Legacy Systems

The cloud and digital transformation have resulted in the decay of long-standing business models. Powerful computing hardware is more accessible than ever, and this enables digital disruptors to start quickly with minimal upfront costs. For incumbents, migrating their legacy systems can be a mammoth task that reduces business agility in the face of intense competition from agile startups.

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Cybersecurity Threats

Cybersecurity has never been more important for businesses and their customers. A brand’s image and reputation can be shattered by a single cyber-attack, mandating strict and comprehensive security monitoring frameworks. High Tech digital disruptors benefit from native security controls in the cloud, whereas incumbents who use on-premises data centers must build ample defenses using their talent and expertise. This presents two dilemmas: retaining on-premises infrastructure while upholding security, or “jumping ship” to the cloud to benefit from native security features.

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Talent Acquisition

There is a massive skills shortage in the high tech industry, and this prevents companies from finding and leveraging the necessary expertise. Furthermore, head-hunting strategies from high tech giants enable talent acquisition through incentivized contracts. This combination of 1) a shortage of talent and 2) buying out talent with financial capital makes it difficult for most high tech companies to build a forward-thinking workforce.

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Disruptors

Incumbents are no longer innovating internally. Instead, new disruptors deliver products and services to the market, before being consolidated into larger firms. This is creating a paradigm where companies can buy innovation rather than undergoing the traditional product or service development cycle, centralizing the market around a small number of large players.

The High Tech Industry is Full of Born-Digital Disruptors


The high tech industry is synonymous with being born-digital. Incumbents must keep pace with newcomers who have no legacy systems or processes to anchor their success—or else risk falling behind. The ecosystem of venture capital (VC) and private equity investment results in a constant influx of new digital disruptors who deliver new and innovative products or services. This creates a Darwinian environment of adapt or die, forcing continuous research, development, and reinvention of product-service portfolios.

Overall, the high tech industry is a hotbed for innovation and digital transformation success in the digital era. All industry players should maintain a high awareness and sensitivity to changing industry norms, while pushing to integrate new technology-driven business models and processes into their operations.


The Most Successful Digital Transformations Are Powered by Analytics Capabilities


Our benchmarking services are powered by over 1.5 million data points in addition to our primary research and data collection capabilities. With access to leaders across more than 40,000 companies in various size segments, industries, and geographic locations, we can quickly gather additional data to address how your business is performing against the competition.

A graph showing which industries are investing the most in digitalization.

Source: Trasers


Data analyzed in this report comes from 4,000+ responses. For the high tech industry, data from 348 companies have been used.


Our high tech industry experts can offer insights into the following sectors: 

  • Hardware and Equipment Manufacturers 

  • Software and Service Providers

  • Semiconductor and Equipment Manufacturers

  • E-Solutions Providers

  • And More

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Disruptive Technologies in the High Tech Industry


The high tech industry delivers a vast number of disruptive technologies that fundamentally alter the technical capabilities of businesses and consumers. This includes sectors like robotics, drone technology, augmented or virtual reality (AR or VR), sensor technology, artificial intelligence (AI) and machine learning (ML).

As a result, high tech companies are under intense scrutiny over the inevitable and incoming “technological singularity.” Technological growth could become uncontrollable and irreversible as AI or ML technologies mature, transforming the socioeconomic landscape — a real concern for world governments and regulators.


Only 7% of Companies Are Delivering on Their Transformational Initiatives


Our research has shown that 30% of companies will fail to survive this decade due to an inability to evolve digitally. To address this negative trend, we have developed the Digital Enterprise Evolution Model™ (DEEM).

Digital Enterprise Evolution Model™

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DEEM allows our clients to recognize digital evolution patterns, implement benchmarking and prioritization strategies, and initiate application management protocols to satisfy stakeholder and market requirements.


High Tech Enterprises Outside the Vision-Driven Quadrant Are at Risk


Many high tech companies are outside of the vision-driven quadrant when it comes to digital transformation. These companies are at considerable risk. Additionally, many high tech companies have recognized the urgency and begun their digital transformations; however, sub-optimal execution is undermining their efforts.

A large number of high tech companies are planning significant cloud investment across all business modalities. The focus is on advanced analytics and process digitalization, along with robotic process automation (RPA). There is still room for improvement in the digitalization approach, however, with an end-to-end digitalization roadmap being essential to maximize success in the long-term.


Human Capital Management (HCM) among High Tech Companies


The high tech industry is among the best when it comes to human capital management (HCM). Many companies are set to invest record amounts when digitally transforming their human capital processes and systems. This is largely driven by skills shortages and an overall lack of talent in the industry. Currently, advanced analytics and AI automation outpace all other functions in terms of investment. These are essential tools in finding and retaining the right human capital.

The focus must be on vision-driven digitalization of human capital management systems and processes, as there are clear vulnerabilities among high tech companies who fall outside the vision-driven quadrant. CEOs will realize immense benefits by benchmarking their high tech HCM operations: such as with the Trianz Digital Enterprise Evolution Model (DEEM™) — enabling better talent acquisition, upskilling, and employee retention.

Experience the Trianz Difference

Trianz enables digital transformations through effective strategies and excellence in execution. Collaborating with business and technology leaders, we help formulate and execute operational strategies to achieve intended business outcomes by bringing the best of consulting, technology experiences and execution models.

Powered by knowledge, research, and perspectives, we enable clients to transform their business ecosystems and achieve superior performance by leveraging infrastructure, cloud, analytics, digital and security paradigms. Reach out to get in touch or learn more.

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State of Digital Transformation
Worldwide 2020 Report

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