The Context of Technology Application in Enterprises After the 3-5 Year Implementation Period

In today’s era of technological development, technology transformation is increasingly emphasized and is a crucial factor in creating competitive advantages for businesses. Technology support not only enhances operational efficiency but also opens up many new opportunities. However, the process of deploying and applying modern information technology platforms is not always smooth. After a period of about 3-5 years of implementation, many businesses have begun to recognize significant challenges they must face in their migration journey.

Data Overload and Uncontrolled Dispersion

With the rapid development of information technology platforms, the amount of data generated and stored globally is skyrocketing. According to a research report from IBM, up to 90% of the world’s total data volume has been created just within the last two years. This figure not only reflects the rapid pace of data growth but also highlights the dispersion of data across various platforms and systems. This fragmentation not only increases the volume of data but also complicates management and synchronization, thereby increasing the costs of storage and processing. Particularly, this significantly impedes the effective application of modern technology, leading to a substantial waste of resources and capacity.

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Data overload and uncontrolled dispersion (Source:

A statistic from Forrester Research indicates that organizations typically spend up to 70% of their time on the preparation and processing of external data. This issue not only negatively affects business efficiency but also creates risks related to data security and privacy. This underscores the importance of investing in advanced data management solutions, helping businesses not only optimize their technology use but also protect this valuable resource.

Lack of Flexibility & Adaptability To Market Fluctuations

In the context of modern business, where the market changes rapidly and customers increasingly have more options, the ability of a business to adapt to these changes is key to survival and growth. This applies not only to products and services but also to the technology platforms businesses use to manage operations and interact with customers. Rigid, inflexible technology solutions not only slow down the digital transformation process but can also lead to obsolescence, causing businesses to miss out on competitive opportunities in the market.

Particularly in the Banking, Insurance, and Financial Services (BFSI) sector, which constantly experiences fluctuations, the demand for flexibility in technology solutions is becoming increasingly urgent. Companies in this sector are facing a range of complex and diverse goals including improving customer experience, enhancing employee experience, optimizing profits, and undergoing digital transformations to achieve excellent operations.

A study by McKinsey shows that about 70% of digital transformation initiatives fail due to a lack of adaptation to the changing needs of the market and customers. This highlights the importance of selecting technology solutions with high adaptability. Businesses wanting to succeed in digital transformation need the ability to quickly identify emerging trends and rapidly implement technology solutions that can adapt to those changes. For example, cloud technology, artificial intelligence (AI), and machine learning (ML) are tools that provide the necessary flexibility and scalability, allowing businesses not only to quickly respond to market demands but also to anticipate and adapt to future trends. Therefore, investing in technology is not just about choosing the right tools but also about creating a strategy capable of adapting and evolving flexibly to face the challenges and opportunities in the changing business environment.

Budget Constraints On Technology Initiatives 

In the context of the global economy increasingly shifting towards digitalization, businesses are facing significant investment costs to upgrade technology infrastructure, expand systems, and maintain existing systems. According to a report from Gartner, global information technology spending this year is expected to reach $5.06 trillion, an increase of 8% compared to 2023. At the same time, businesses must also cope with the rapid development of technology, forcing them to continuously update and replace outdated systems to maintain their competitive edge. A survey by Firstpost indicates that businesses expect to spend up to 25% of their IT budget on technology innovation and updates, which not only represents a substantial investment but also a major financial management challenge.

Digitization: Budget Constraints for Fundamental Change - Itoolsethub
Budget constraints on technology initiatives (Source:

The significant challenge here is how to determine the ROI (Return on Investment) for these investments. The issue lies not just in spending but also in how to measure the effectiveness of that investment. As the costs of upgrading infrastructure, expanding systems, and maintenance continue to rise, measuring the actual effectiveness of these investments becomes extremely difficult. This makes preserving the budget for subsequent technology initiatives more complicated and risky due to difficulties in clearly determining ROI. Without a clear picture of the benefits, senior managers and stakeholders often hesitate in approving budgets for new projects. This leads to a negative cycle where a lack of initial investment can hinder the development and application of new technologies, simultaneously obstructing the improvement of overall operational efficiency.

Wrap up

In the increasingly challenging and competitive modern business landscape, the search and implementation of new technology solutions are not only necessary but also urgent for businesses wanting to maintain sustainable growth. Advanced technologies provide opportunities to optimize operational processes, reduce costs and associated risks, thereby enhancing competitive capabilities in a diverse and volatile environment.

Businesses need to conduct thorough analysis and evaluate new technologies based on important criteria such as functionality, integration capability with existing systems, security level, and scalability. The selection and deployment of technology solutions must be based on current needs and long-term vision, ensuring that the chosen technology can adapt to future changes. A smart investment strategy will maximize efficiency, improve customer satisfaction, and strengthen sustainable competitive advantages for the business.


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