Tech leaders fear competitive displacement if innovation lags

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A report by Kong details areas of concern for IT decision makers as well as some potential solutions to innovation-related issues.

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Tech industry decision makers fear their companies will be pushed into the background if they don’t stay on the cutting edge of technology, a new study has found. A survey of 500 people as part of Kong API and Microservices Connectivity Report 2022 found that 75% of technology leaders fear competitive displacement if they fail to keep pace with digital innovation. The number is a 13% increase over the previous year, signaling increased pressure to always be on the cutting edge of cutting-edge technology.

“Kong’s latest API and Microservices Connectivity Report provides critical insights into the state of business innovation and technology adoption as we enter this new post-pandemic era,” said Marco Palladino, Chief Technology Officer and Co-Founder of Kong Inc. “We are in a unique business climate today where nearly every minute of our customers’ lives is digitally connected, and they expect nothing less than seamless connections and the best possible digital experiences. Companies must make customer experience a priority in 2022, starting with investing in the right technology stack and empowering their developer teams to build the apps of the future.

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Ripple effects in case of lack of innovation

Even though many organizations are making digital transformation a priority in the wake of the COVID-19 pandemic, many fear that if innovation lags behind, the setback, combined with a lack of talent, could deal a serious blow to their business. Of those surveyed, 34% said that an insufficient number of employees with the required skills is a major concern and can stifle modernization within a company.

Going even further, it is estimated that many tech decision makers believe that if this creativity continues to falter, it could mean the end of the business. Forty percent of IT leaders surveyed said they believed that if innovation lagged, they would go out of business or be taken over by a competing company in three years. If extended to a six-year period, 81% said they believed buy-or-die would happen if the company fell behind on progress, and 98% said it would happen if it did. they continued for a decade. These numbers indicate that many C-level positions are concerned about the progress their companies are making relative to their competitors in the same markets.

Ways to prevent the stagnation of new ideas

Kong, as part of the report, offered different ways to keep innovation within companies, namely:

  • Appropriate IT budgets and funding
  • Modern application programming interfaces (APIs) and software
  • Leading Digital Experiences

The most important way for businesses to ensure they stay at the forefront of innovation is to invest in skilled workers and make digital tools accessible to the workforce. Of those surveyed, 79% said they expect their organizations to increase IT and development budgets by up to 25% in the coming year. Fifteen percent said they expect their IT and development budgets to also halve in 2022. By allocating more resources and skilled workers to these areas, it will allow companies to consistently push in favor of digital modernization and not letting these organizations fall behind their competitors.

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Using the latest APIs and software was also cited as a way to prioritize digital experiences, thanks to a reliable, secure and scalable technology stack. Nearly 90% of respondents said they believe microservices-based applications are the future and the ability to support distributed applications is critical to success. These microservices enable fast, frequent, and reliable delivery of large and complex applications. Using APIs for these microservices is also mentioned as a way for businesses to stay ahead of the competition, allowing businesses to run microservices at scale.

Innovating at a rapid pace is another way for organizations to stay competitive in their respective fields, but must be balanced against potential gaps in security, performance, and reliability. Technology leaders surveyed identified application security, improved performance, easy adoption of new technologies and improved developer efficiency as top priorities when building cutting-edge digital experiences . Finding the right balance between technological innovation, while ensuring the safety and efficiency of the workforce must be a key area for companies looking to stay at the forefront of their respective fields and avoid taking late.

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