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How Well are Wovenware’s 2023 Technology Predictions Stacking Up?

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Summary: This article revisits Wovenware’s predictions for a year focused on pragmatic technologies that can prove their worth during a challenging economy and assesses how relevant this focus remains mid-way through 2023

Back in January, the start of a shiny new year felt like a fresh, clean slate ripe with new opportunities and possibilities, despite an uncertain economic future and questions about how businesses could operate in a post-pandemic, and war-torn world. At that time, Wovenware declared that pragmatism would be the common theme of the new year.  

We declared that investment in technology as a core business driver would not dry up, but it would be looked at under a different lens. It would need to prove its ability to enable a fast return on investment (ROI), productivity and cost reduction. 

According to Gartner, the global IT market is projected to reach $4.6 trillion this year, up from $4.4 trillion in 2022, despite continued economic turbulence and high inflation rates. “Macroeconomic headwinds are not slowing digital transformation,” said John-David Lovelock, distinguished vice president analyst at Gartner. The top five spending areas in 2023 are communications services, software, devices, data center systems and IT services.

Half-way through the year, we’re seeing that pragmatism has indeed become the watch-word. Yet what exactly did we mean by “pragmatic technologies? According to the Cambridge Dictionary, pragmatic means “solving problems in a sensible way that suits the conditions that really exist now.” A pragmatic approach to technology doesn’t have to be the antithesis to idealistic, it just has to be practical enough to meet the real needs of today. As Rick Villars of IDC said, “technology and IT is not about where we cut – technology is where we invest to help the rest of the business navigate the recession.”

Against a theme of pragmatism, below are five key trends we predicted that appear to be on track for coming true throughout the remainder of the year.

A Prolonged Tech Talent Shortagee

A labor and tech talent shortage remains high this year, despite continued lay-offs at major tech firms. The reason is that companies understand that they must invest in talent and innovation in order to strongly  emerge from the economic downturn – and digital transformation holds the key to their ability to thrive. 

Pragmatic Tech Spend 

Back in January we estimated that many types of digital transformation may be put on hold as companies hunker down and focus on only what is absolutely needed. We’re now finding that many companies are now viewing digital transformation as a necessity —  as long as it has proven ROI – able to reduce costs or headcount, improve efficiency and boost productivity. As generative AI, such as ChatGPT, comes on to the scene in a big way in just the past few months, the value of digital transformation through AI is being seen as a major business driver.

Data Privacy Regulations

We said in January that the need for greater privacy of personal information would increase, as the federal government more closely scrutinized big players, such as Facebook, Twitter and . Yet, no real headway was made in terms of setting data privacy standards.

As generative AI continues to dominate the tech industry news, we can expect to see data privacy regulation go into overdrive over the remainder of 2023 and beyond. As part of these regulations, companies leveraging AI as a business driver will need to make their solutions more transparent in terms of how they make certain decisions and for this reason, in 2023 all AI will need to be explainable AI.

Rise of UX 

With more discerning and scrutinized tech budgets, organizations embarking on digital transformation projects will more closely rely on user experience (UX) and service design as a first step. Many firms know too well the experience of spending lots of money and resources on projects that somehow miss the mark and fail to meet user expectations. 

In 2023, we’ve seen this play out even among our own clients. There has been greater emphasis and investments in human-centric design thinking, journey mapping, storytelling, prototyping and other design activities that remove some of the risk in software and AI development and help them grow their customer base by more accurately meeting their needs.

3D Intelligence 

A shift from 2D to 3D geospatial data intelligence is growing across markets as varied as aerospace & defense, consumer apps and healthcare, providing greater use of simulation in industries that have not yet taken advantage of it. 3D geospatial intelligence is providing these industries with deeper clarity and insights. And, new markets, such as Insurance and investment banking, are relying on computer vision solutions trained on 3D images to help assess flood regions after a storm, or help governments with more accurate urban planning. 

As we turn the corner in the second half of 2023, we’re seeing that pragmatic technology remains a common theme, yet against a backdrop of new developments in the world and the industry. As we’re seeing, pragmatic doesn’t mean an end to innovation via digital transformation – on the contrary – it provides the realistic lens that enables it to become  reality. 

Predictions in Technology for 2023 by the Experts | Wovenware

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