Perspectives
Intro: Growth in an uncertain time
An unsettled global outlook will see many business leaders start the new year with a sense of caution and a focus on cost control. But at the same time, growth remains an imperative, and businesses increasingly understand that investing in technology to support that goal is no longer optional.
In this issue of Perspectives, Thoughtworks experts break down the elements of a technology strategy that ensures spending on new infrastructure and innovations deliver on the business’s growth priorities, with maximum efficiency and minimal disruption.
Top threats to growth, as seen by CEOs: 2015-2024
i. Level-setting: Integrating business and tech strategy
The rise of generative AI (GenAI) has created significant potential to boost output and even creativity by augmenting human roles – but is also inflating both budgets and expectations as boards and teams misjudge their readiness and the optimal use cases.
Ensuring new technologies are adopted and successfully support growth requires a careful alignment of technology and business strategy, where investment is directly connected to the organization’s priorities.
ii. Cultivating data as an asset, and modernizing legacy infrastructure
As more business leaders look to leverage data for growth and competitive advantage, weaknesses in the governance and technology that surround data will become increasingly apparent. Unlocking the full value of data requires a deeper understanding of its origins and integrity, and the role it can play as a product available for the entire organization to harness as a growth driver.
Moving incrementally towards a decentralized approach to data and infrastructure supports this mindset shift, and can accelerate both development and innovation.
iii: Growth pains: The talent hurdle
The breakneck pace of technology development has added to the sense that a shortage of applicable skills is one of the main barriers to organizations achieving their growth objectives.
However in reality many of the newest technology tools are effectively lowering the barrier to entry in areas like AI, and most companies are better off hiring people with curiosity and a thirst to learn than an army of tech specialists. An open culture and providing opportunities to get hands-on with technology are the other keys to cultivating organizational capacity.
“You really need to be building your technology organization so it’s filled with people who are curious and have a growth mindset, to be able to adapt and respond as the landscape changes.”
Chris Murphy
Chief Client and Revenue Officer, Thoughtworks
iv. Controlling costs and tech debt
Many organizations' mixed financial results from shifting to cloud infrastructure highlight the importance of carefully planning and executing technology investments. But insufficient investment can pose even greater risks, by driving up the organization's technology debt to the point where it can no longer produce the innovations needed to build momentum, and customer relationships hang in the balance.
Tech debt can be avoided by concentrating technology initiatives and investment on specific functions that cut across the business, addressing legacy constraints while improving capabilities for the future.
Iterative value
Source: Henrik Kniberg at Crisp
vi. Partnerships and creating virtuous change cycles
Regardless of the capabilities an organization manages to develop, they’re unlikely to cover all the corners of a technology landscape that only continues to expand. By forging the right partnerships, organizations can address gaps in their knowledge of the tech ecosystem, benefit from an informed outside perspective, and even potentially realize new revenue opportunities.
At the same time, with business and tech strategy now inextricably linked, leaders should cultivate a robust internal technology practice that keeps an ear to the ground, and helps develop organizational capacity to change.
“If you get an insight into where things are going, you’ll have less and less time to capitalize on it. You need strategy, technology and organizational structure lined up so when that insight comes, you’re ready to maneuver.”
Mike Mason
Chief AI Officer, Thoughtworks
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