17 Feb, 2023 / Xode Article
Gartner's Top Tech Trends for Tech Providers in 2023: A Comprehensive Overview and Analysis
Gartner has released its top 10 technology trends for Tech Providers for 2023, which reflect the dual reality of balancing short-term planning with long-term strategy to stay ahead of the immediate shocks to the economy and the underlying forces shaping their business.
The trends are grouped into three broad themes:
The trends include the expansion of digital responsibility and capability for tech beyond IT, the rise of digital marketplaces, the shift to a new paradigm of intelligent computing, and the elevated importance of environmental, social, and governance factors on corporate, business, and product-level decision making. Product leaders and executives must evaluate the impact of these trends across all dimensions of their business to determine required actions.
We explore the top 10 trends for technology providers in detail.
The order of the trends does not imply any ranking.
Tech providers need to focus on improving the sustainability of their products to enable their users to achieve sustainable business outcomes.
Sustainable business refers to the practice of operating a business in a way that minimises negative environmental and social impacts while maximising positive ones. As consumers and governments increasingly demand environmentally and socially responsible practices, it has become more important for tech providers to focus on improving the sustainability of their products.
One way that tech providers can improve the sustainability of their products is by designing them to be more energy-efficient. This can include reducing the power consumption of hardware, optimising software to use less energy, and creating more efficient data centres. Tech providers can also focus on using renewable energy sources to power their operations and data centres, which can help reduce their carbon footprint.
In addition to energy efficiency, tech providers can also focus on reducing waste and promoting circular economies. This can involve designing products with materials that are easily recyclable or reusable, as well as implementing programs to recycle or repurpose end-of-life products. By focusing on circular economies, tech providers can reduce the environmental impact of their products and minimise the use of finite resources.
To achieve sustainable business outcomes, tech providers also need to enable their users to operate their businesses in a sustainable way. This can involve providing tools and technologies that help businesses measure and reduce their environmental impact, such as carbon footprint calculators or supply chain sustainability tracking systems. Tech providers can also help businesses achieve sustainable business outcomes by promoting collaboration and sharing of best practices.
Overall, improving the sustainability of their products is an important step for tech providers to take in order to promote sustainable business practices. By doing so, they can not only reduce their own environmental impact but also help their users achieve their sustainability goals.
The increase in protectionist policies and nationalisation is affecting global technology ecosystems. Product leaders must balance meeting specific country-level localisation and product profitability.
Techno-nationalism refers to the trend of governments and countries prioritising their own national interests when it comes to technology and the digital economy. This can take the form of protectionist policies, such as tariffs and trade barriers, as well as regulations that favour domestic companies over foreign ones.
The rise of techno-nationalism can have a significant impact on global technology ecosystems, as it can create barriers to entry for companies operating outside of a specific country or region. For example, a company that wants to do business in China may be required to partner with a domestic firm and share its technology in order to operate there. Similarly, countries may require that data be stored locally, which can limit the ability of foreign companies to provide services in those regions.
Product leaders need to be aware of the localisation requirements in specific countries and regions, and ensure that their products meet those standards while remaining profitable. This can require a careful balancing act, as localisation efforts can be costly and time-consuming, and may require significant changes to the product itself.
Product leaders may also need to consider alternative strategies, such as partnerships or joint ventures with local companies, in order to gain a foothold in specific markets. They may also need to invest in research and development to create products that are better suited to the specific needs of a given country or region.
Overall, the rise of techno-nationalism is a complex and evolving issue that product leaders need to carefully consider in order to navigate the global technology landscape.
Authorised decision makers and influencers are increasingly outside IT, and tech providers must adjust to a federated buying process. The shift demands revised go-to-market models with a greater focus on value scenarios and outcomes rather than just technology.
Federated enterprise tech buying refers to the trend of decision-making and influence around technology purchases moving outside of traditional IT departments to a more dispersed group of decision makers and influencers within an organisation. This shift in buying behaviour can be attributed to a number of factors, such as the increasing importance of technology across different business functions and the rise of cloud-based services, which are often purchased by business units outside of IT.
For tech providers, this shift demands a revised go-to-market strategy that puts a greater emphasis on value scenarios and outcomes rather than just technology. This means that providers need to focus on delivering solutions that are tailored to the specific needs and goals of different business functions and stakeholders, and that clearly demonstrate the value they can deliver to the organisation as a whole.
To successfully navigate the federated buying process, tech providers must also identify and engage with the key decision makers and influencers within each business unit, and work to understand their specific pain points and objectives. This may involve developing relationships with stakeholders outside of traditional IT roles, such as marketing or finance, and tailoring messaging and marketing materials to address their specific needs and priorities.
In addition to these changes in marketing and sales approaches, tech providers may also need to adapt their product offerings and delivery models to better align with the federated buying process. This may include providing more flexible and modular solutions that can be easily customised and integrated with other technologies, as well as offering more support and guidance around implementation and adoption.
Overall, the shift towards federated enterprise tech buying represents a significant change for tech providers, requiring them to rethink their go-to-market strategies and product offerings in order to better serve the needs of a more diverse and dispersed group of decision makers and influencers.
Tech providers need to take a strategic high-priority approach to co-innovation to deliver customer value, balance investment, and control and speed of innovation.
Co-innovation ecosystems refer to the networks of partnerships and collaborations between tech providers, customers, and other stakeholders that are focused on creating new solutions and driving innovation. In a co-innovation ecosystem, different partners contribute their unique strengths, capabilities, and resources to create innovative products and services that deliver value to customers.
To successfully participate in co-innovation ecosystems, tech providers need to take a strategic approach that balances investment, control, and speed of innovation. This means that they must carefully select partners that can help them achieve their innovation goals, while also ensuring that they have appropriate levels of control and protection over their intellectual property.
In addition to selecting the right partners, tech providers need to also ensure that they are focusing on delivering customer value through co-innovation. This means understanding customer needs and pain points, and working collaboratively with partners to create solutions that address these needs in a meaningful way.
To enable effective co-innovation, tech providers may also need to invest in the right tools and processes, such as open innovation platforms or agile development methodologies, that can help facilitate collaboration and accelerate the innovation process. This may involve implementing new ways of working, such as co-creation workshops, design sprints, and hackathons, that bring together stakeholders from different backgrounds and disciplines to generate new ideas and solutions.
Ultimately, co-innovation ecosystems offer a powerful way for tech providers to drive innovation and create new value for customers. However, to be successful in these ecosystems, tech providers need to take a strategic approach that balances investment, control, and speed of innovation, and that focuses on delivering customer value through collaborative partnerships and co-creation.
Non-IT workers are empowered to seek, select, implement and custom-fit their own technology. Tech providers must embrace the new opportunities and meet the needs of citizen developers and business technologists.
The democratisation of technology refers to the trend of non-IT workers, such as citizen developers and business technologists, becoming empowered to seek out, select, implement, and customise their own technology solutions, often without the assistance or involvement of traditional IT departments.
This trend has been driven in part by the increasing availability and accessibility of cloud-based software and tools, which have made it easier for business users to find and adopt the technology solutions they need to be more productive and effective in their roles.
For tech providers, the democratisation of technology presents both new opportunities and challenges. On the one hand, it opens up new markets and customer segments, as more and more non-IT workers seek out technology solutions to help them do their jobs better. On the other hand, it requires tech providers to adapt their product offerings and go-to-market strategies to better serve the needs and preferences of citizen developers and business technologists.
To succeed in this new environment, tech providers must embrace the opportunities presented by the democratisation of technology and develop products and services that are accessible, easy to use, and customisable by non-IT users. This may involve adopting new development methodologies, such as low-code or no-code platforms, that allow non-IT users to build and customise their own software solutions.
In addition, tech providers must also work to understand the needs and preferences of citizen developers and business technologists, and develop targeted marketing and sales strategies to reach and engage these customers effectively. This may involve leveraging new channels and platforms, such as social media and online marketplaces, to connect with non-IT users and promote their products and services.
Overall, the democratisation of technology represents a significant shift in the technology landscape, requiring tech providers to adapt their strategies and offerings to better serve the needs and preferences of non-IT users. By embracing this trend and developing products and services that are accessible, customisable, and easy to use, tech providers can unlock new markets and opportunities for growth in the years ahead.
B2B product leaders must address user versus buyer influence and dynamics, as well as how to manage, prioritise, and/or interweave product-led growth and sales-led growth motions for go-to-market success.
Product-led growth is a go-to-market strategy that places the product itself at the centre of the customer acquisition and retention process. Rather than relying on traditional sales and marketing tactics, product-led growth focuses on creating a product that is easy to use, delivers value quickly, and encourages users to share and promote it with others.
For B2B product leaders, product-led growth represents a significant shift in the way they think about customer acquisition and retention. Instead of focusing solely on the needs and preferences of the buyer, they must also consider the needs and preferences of the user, who may be the one actually using and benefiting from the product on a daily basis.
To be successful with product-led growth, B2B product leaders must address the user versus buyer influence and dynamics, and determine how to manage, prioritise, and/or interweave product-led growth and sales-led growth motions for go-to-market success. This requires them to develop a deep understanding of their target users, their needs and pain points, and how their product can deliver value to them in a way that encourages them to share and promote it with others.
In addition, B2B product leaders must also work closely with their sales and marketing teams to ensure that their product-led growth strategy is aligned with their overall go-to-market approach. This may involve finding ways to interweave product-led growth and sales-led growth motions, so that they work in tandem to drive customer acquisition and retention.
Overall, product-led growth represents a powerful way for B2B product leaders to create products that deliver real value to users, and that can drive sustained growth and success for their businesses. By understanding the dynamics of user versus buyer influence, and working to integrate product-led growth and sales-led growth motions in their go-to-market approach, B2B product leaders can unlock new opportunities for growth and success in the years ahead.
Tech buyers are embracing digital marketplaces to find, procure, implement, and integrate technology solutions. Tech providers must capitalise on this trend to connect and find new buyers through digital marketplaces and shorten the buying cycle.
The rise of digital marketplaces refers to the growing trend of tech buyers using online platforms to find, procure, implement, and integrate technology solutions. These marketplaces offer a more efficient and streamlined way for buyers to discover and compare different products and services, and can help to accelerate the buying cycle and reduce the costs associated with traditional procurement methods.
For tech providers, the rise of digital marketplaces represents both a challenge and an opportunity. On the one hand, it can be more difficult to stand out in a crowded marketplace and connect with potential buyers, as competition is often fierce and there are many other providers vying for attention. On the other hand, digital marketplaces offer a powerful way to reach new buyers and grow market share, by providing a more direct and efficient way to connect with potential customers.
To capitalise on this trend, tech providers must develop a deep understanding of the digital marketplace landscape and the needs and preferences of their target buyers. This may involve partnering with established marketplaces to gain visibility and exposure, or building their own marketplaces to provide a more tailored and differentiated experience.
In addition, tech providers must also work to streamline their procurement and implementation processes, to better meet the needs and expectations of buyers who are looking for a fast and seamless experience. This may involve developing tools and resources to help buyers assess and compare different products and services, or providing guidance and support to help them integrate new solutions into their existing systems and workflows.
Overall, the rise of digital marketplaces represents a significant shift in the way tech buyers discover, evaluate, and purchase technology solutions. By capitalising on this trend and developing strategies to connect with buyers through digital marketplaces, tech providers can unlock new opportunities for growth and success in the years ahead.
Intelligent applications will create value and disrupt markets by learning, adapting, and generating new ideas and outcomes. Product leaders must focus on implementing intelligent capabilities to compete against the coming wave of emerging offerings.
Intelligent applications are a type of software application that leverage technologies such as artificial intelligence (AI), machine learning, natural language processing (NLP), and other forms of advanced analytics to learn, adapt, and generate new ideas and outcomes. These applications are capable of processing vast amounts of data in real time, identifying patterns and insights, and making autonomous decisions based on that data.
For product leaders, the rise of intelligent applications represents both a challenge and an opportunity. On the one hand, intelligent applications have the potential to disrupt markets and create new value streams, by providing more personalised and contextualised experiences for customers. On the other hand, product leaders must be able to implement intelligent capabilities into their products to stay competitive in the face of emerging offerings.
To be successful with intelligent applications, product leaders must focus on understanding the specific needs and preferences of their target customers, and identifying the types of data and insights that can help to drive better outcomes for those customers. This may involve building new machine learning models or integrating existing ones, developing NLP capabilities to better understand customer feedback and sentiment, or leveraging other forms of advanced analytics to gain a deeper understanding of customer behaviour and preferences.
In addition, product leaders must also focus on creating a culture of experimentation and continuous improvement, to ensure that their intelligent applications are always learning, adapting, and generating new ideas and outcomes. This may involve developing new processes and workflows to enable faster experimentation and iteration, or creating new feedback loops to help identify areas for improvement and innovation.
Overall, the rise of intelligent applications represents a significant shift in the way that products are designed, developed, and deployed. By focusing on implementing intelligent capabilities and creating a culture of experimentation and continuous improvement, product leaders can unlock new opportunities for growth and success in the years ahead.
Metaverse technologies are gaining traction in marketing for creating unique experiences, impactful interactions, and novel engagement. Product leaders must seize the opportunities to create unique experiences and elevate their marketing and CX initiatives.
Metaverse technologies are virtual worlds or environments that allow users to engage with digital content in a highly immersive and interactive way. These technologies are gaining traction in marketing and customer experience (CX) initiatives, as they provide a unique and impactful way to create engaging experiences for customers and drive brand awareness and loyalty.
Product leaders can leverage metaverse technologies to create immersive and interactive experiences that are customised to the needs and preferences of their target audience. For example, they can create virtual storefronts or showrooms that allow customers to explore and interact with products in a highly engaging way. This can provide a more personalised and memorable experience for customers, which can help to drive higher levels of engagement and conversion.
In addition, product leaders can use metaverse technologies to create unique and impactful experiences for customer support and CX initiatives. For example, they can create virtual support centres or customer service portals that allow customers to interact with support agents in a highly immersive and interactive way. This can provide a more personalised and efficient support experience for customers, which can help to drive higher levels of customer satisfaction and loyalty.
To be successful with metaverse technologies, product leaders must focus on understanding the needs and preferences of their target audience, and identifying the types of experiences and interactions that will resonate with them. They must also be able to leverage advanced technologies such as virtual reality (VR) and augmented reality (AR) to create compelling and engaging experiences that are customised to the needs and preferences of their customers.
Overall, the rise of metaverse technologies represents a significant opportunity for product leaders to elevate their marketing and CX initiatives, and create unique and impactful experiences for their customers. By focusing on leveraging these technologies to create personalised and immersive experiences, product leaders can unlock new opportunities for growth and success in the years ahead.
Digital twinning is the virtual representation of physical objects or systems, and product leaders must leverage it to drive value in their offerings and to develop new business models.
Digital twinning is the process of creating a digital replica of a physical object or system. This virtual representation can include detailed information about the physical attributes, behaviour, and performance of the object or system, and can be used to simulate and analyse its behaviour in various scenarios.
Product leaders can leverage digital twinning to drive value in their offerings and develop new business models in a variety of industries, including manufacturing, healthcare, and transportation. For example, in manufacturing, digital twinning can be used to simulate and optimise production processes, reduce downtime, and improve quality. In healthcare, digital twinning can be used to simulate and personalise treatments for patients, improving outcomes and reducing costs. In transportation, digital twinning can be used to simulate and optimise traffic flows, reduce congestion, and improve safety.
Product leaders must invest in the technology and infrastructure necessary to support digital twinning, including data analytics, simulation tools, and high-performance computing. They must also work closely with customers and partners to identify and address specific pain points and opportunities where digital twinning can add value.
In addition, product leaders must develop new business models that leverage digital twinning to create new revenue streams and value propositions. For example, they can offer digital twin-as-a-service solutions that enable customers to simulate and analyse their physical assets in real-time, improving operational efficiency and reducing costs. They can also leverage digital twinning to create new data-driven products and services that generate insights and value for customers.
Overall, digital twinning represents a significant opportunity for product leaders to drive value in their offerings and develop new business models. By investing in the necessary technology and infrastructure, and working closely with customers and partners to identify specific pain points and opportunities, product leaders can unlock new opportunities for growth and success in the years ahead.
The emergence of co-innovation ecosystems and the democratisation of tech, in particular, suggest that collaboration and the expansion of digital capabilities beyond IT will be crucial for success. In addition, the continued emphasis on product-led growth and the rise of digital marketplaces highlight the importance of customer-centric approaches and new sales models.
Meanwhile, the increased use of intelligent applications and metaverse technologies for marketing and CX indicates that businesses will need to stay on top of the latest technological developments to remain competitive.
To sum it all up, the top technology trends for 2023 identified by Gartner reflect the changing landscape of the industry and the impact of macro forces on both the economy and society. Product leaders and executives must balance short-term planning with long-term strategy to stay ahead of the immediate shocks to the economy and the underlying forces shaping their business.
The identified trends provide opportunities for businesses to increase their reliance on technology, create new value through collaboration, and leverage emerging technologies for marketing and customer experience. In addition, product leaders must consider the impact of external forces, such as sustainability and techno-nationalism, on their products, ecosystems, and business models. By evaluating the impact of these trends across all dimensions of their business, product leaders can determine the required actions and craft effective strategies to stay ahead in the rapidly evolving tech industry.
Tags: Gartner, Top Trends for 2023, Product Leaders, Digital Transformation, Digital Marketplaces, Product-Led Growth, Co-Innovation of Ecosystems, Intelligent Applications