Fifty-three percent of organizations report their board of directors are among the main decision makers for emerging technology (ET) investments, just behind chief information officers (CIOs) and chief technology officers (CTOs), according to a recent Gartner, Inc. survey.
Gartner surveyed 500 global respondents from midsize and larger organizations in September and October 2021 to understand buying behavior when investing in emerging technologies.
“ET purchase decisions are no longer under the sole purview of IT,” said Danielle Casey, senior principal research analyst at Gartner. “The business has more confidence in these technologies as they move past hype and toward tangible ROI, resulting in growing investments and scaling out projects.”
5G drew the highest average investment in 2021, with survey respondents reporting an average of $465,000 invested in the technology. This was followed by IoT at $417,000 and edge technologies (i.e., edge AI and edge computing) at $262,000. Edge technologies are projected to experience the highest investment increase in 2022, growing 76% to $462,000.
“Organizations are using 5G and edge technologies to improve employee productivity, augment existing products and services by making them more connected and intelligent, and automate business processes,” said Casey.
Ninety percent of survey respondents reported ET investments are either meeting or exceeding user expectations. In the few instances when ET did not meet expectations, it was not always due to the technology itself: 20% of respondents whose expectations were not being met reported staff related issues, such as the lack of skills or adoption by staff, as a main inhibitor to ET adoption. Twelve percent were due to unexpected costs.
“The survey showed that the most important consideration when selecting one vendor’s ET over the other is their ability to provide demonstrable use cases and a track record of success,” said Casey. “Product managers should emphasize business value and communicate success stories when promoting ET to keep this momentum of adoption and investment going.”
Gartner clients can read more in “Infographic: Decision-Making Factors for Emerging Technologies Investments – Adopter Survey Findings” and upcoming webinar Introducing the Emerging Technology Benchmark for High Tech Leaders.
Learn about the top priorities for technology product managers in the complimentary ebook 2022 Leadership Vision for Technology Product Managers.
Gartner Tech Growth & Innovation Conference
Gartner analysts will provide additional analysis on how technology service providers can accelerate growth, drive product innovation and leverage emerging technologies at the Gartner Tech Growth & Innovation Conference 2022, taking place virtually July 12-13 in the Americas. Follow news and updates from the conference on Twitter using #GartnerTGI.
About Gartner for High Tech Leaders
Gartner for High Tech Leaders provides actionable, objective insight to tech leaders and their teams with role-based best practices, industry insights and strategic views into emerging trends and market changes to achieve their mission-critical priorities and build the successful organizations of tomorrow. Additional information is available at www.gartner.com/en/industries/high-tech.