Technology Trends and Convergence
In its latest study "New Technology—The Future Will Be Even Faster", management and technology consultancy BearingPoint analyzes the emerging trends, technological innovations, and strategic priorities that are currently having a major impact on the B2B software market. Based on the experience of more than 100 international software experts and extensive data analysis, the study provides a holistic view of the industry landscape. "Our study highlights the key trends that are currently influencing the B2B software market and also looks at the strategic responses required to generate opportunities for one's own company from these trends," said Marcel Tietjen, Partner at BearingPoint and author of the study. "Technology convergence and AI are dominating the innovation landscape, and companies need to approach these changes with agility and foresight to be successful in the future."
Generative AI and convergence
The breakthrough of generative AI with the introduction of ChatGPT in the fall of 2022 marks a significant milestone for digital transformation. Almost all of the companies and organizations surveyed by Lünendonk are dealing with this technology. Generative AI is highly relevant for 42 percent of participating companies, while 58 percent are skeptical about the technology. 13 percent do not yet allow the use of generative AI at all—mainly due to concerns about data security and the quality of the results generated, or due to unresolved liability issues. With regard to the EU AI Act, 31 percent of the companies surveyed are currently putting their generative AI activities on hold because they want to wait for the EU AI Act to be fleshed out.
These are the initial findings of the new Lünendonk Study 2024, "Generative AI—From Innovation to Market Maturity". The study was conducted in technical cooperation with GFT, KPS, Protiviti, Randstad Digital, Reply, and Senacor. For BearingPoint, technological convergence is a top priority: 95 percent of software managers surveyed recognize its potential. This trend, which describes the merging of previously unrelated technologies or even their standardization to create new applications, is accelerating technological progress and creating new business opportunities.
Artificial intelligence follows closely behind, with 89 percent of BearingPoint respondents seeing it as a significant business opportunity. AI technologies enable computers to mimic human thinking and learning, which is essential for advanced data analysis, automation, and improved customer experiences. Advances in computing and communications infrastructure, including optical computing, nanocomputing, and DNA data storage, are making systems more robust, miniaturized, and energy efficient. These innovations are key enablers for new applications. "The results of our study highlight the unprecedented pace of change in the B2B software market," said Marcel Tietjen. "Our findings underscore the importance of strategic agility and the need for companies to adapt to new technological developments as quickly as possible if they want to remain competitive."
In addition, 67 percent of Lünendonk's respondents expect significant automation potential and 66 percent expect cost savings through the use of generative AI. Every second company sees an advantage in the documentation of knowledge—among other things, to counteract demographic change and the resulting loss of knowledge. The topic of generative AI is highly relevant for most of the participants in the study. However, most of the companies surveyed are still in the early stages of using generative AI—only three percent of the companies surveyed have fully integrated generative AI solutions into their production operations, while one third are still in the testing phase.
However, the use of new technologies also brings new risks, according to the Lünendonk survey. For example, the emergence of so-called shadow AI is a cause for concern: one third of the companies surveyed allow all employees unrestricted access to Gen-AI tools, which can lead to security problems and data breaches. In another 32 percent of companies, employees have limited access. Only 35 percent of companies limit access to selected areas and functions.
Infrastructure and deep tech
The study shows that software vendors are generally positive about the business prospects associated with these trends. Over the next three years in particular, the market and technology trends outlined above will drive significant business opportunities. The market outlook varies by product segment, with infrastructure and deep-tech software vendors expressing the most positive business expectations. While the opportunities are increasing, the perceived risks are low. These are primarily related to the challenges of implementing the necessary changes. Companies must adapt their business models and operational processes to respond to new market trends. Success depends on having the right resources and the ability to adapt to stay ahead of the competition. Horizontal and hybrid vendors see the greatest opportunities for growth outside their current target markets. By developing new segments, software companies can expand their customer base.
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