IT Ecosystem Trust Paves the Way for GenAI-enabled Growth in 2024

2024 Predictions is a series of special reports examining market trends and business changes TBR’s analysts expect in the coming year. In the digital transformation edition, our team looks at expectations for GenAI’s impact, the rise of superpowers and the three things enabling new market growth.

Top 3 Predictions for Digital Transformation in 2024

1. GenAI hype meets reality
2. Ecosystems fuel disruption and lead to the rise of the superpowers
3. Cyber, data and regulations — the three-legged stool enabling new digital transfomration growth

 

Challenges and Opportunities in the Era of GenAI and Enterprise Digital Transformation

While cloud remains the backbone of buyers’ digital transformation (DT) programs, generative AI (GenAI) has thrown vendors and their technology partners into a frenzy, especially as enterprise buyers have started paying closer attention to their IT spend in response to macroeconomic headwinds.
 
This new dynamic creates a plethora of challenges and opportunities for technology and services vendors that guide and manage enterprise DT programs. From vendor consolidation to technology stack simplification, buyers continue to look for ways to optimize their digital assets, making it hard for vendors to introduce new technology without the appropriate use cases. Delivering value in a challenging market requires vendors to act more as strategic partners and collaborate rather than simply transact with enterprises.
 
GenAI is here to stay. There are certainly more unknowns than knowns today, despite everyone across the ecosystem convincing others they have found the silver bullet that will enable the creation of the next-gen enterprise business model. As with most new technologies, establishing the right frameworks as well as commercial and pricing models is a necessary first step before adoption can scale. Developing and deploying pricing mechanisms that incorporate pro bono and/or risk-sharing services and using templated offerings to standardize delivery can help vendors maintain their incumbent positions, especially as GenAI will level the skills playing field.
 

 
Expectations around differentiation are also changing, increasing the need for vendors to add specialization and often spurring them to expand their partner ecosystem. The advent of a new technology stack (e.g., next-gen GPU-run data centers that enable GenAI to reveal its full potential) will compel vendors to re-evaluate and expand their relationships with chip manufacturers — something many software and services vendors have not done for a while.
 
Additionally, the implications for cyber, data, regulations, ethics, and model governance will continue to dominate headlines and vendor-buyer conversations. And while vendors are in the business of making money, we believe the winning formula is to strike the right balance between constantly selling and consistently developing relationships with buyers and partners.
 
To read the entire 2024 Digital Transformation Predictions special report, request your free copy today!