Consumers tend to hold high-tech companies to a higher standard of customer experience than other brands. After all, high tech implies innovation.
But the pressure doesn’t stop there: Competition is intense—at an all-time high and growing—plus consumers are quick to substitute one product or service for another if it’s easier to use.
Long story short, challenges abound, according to new research by Ovum, which took a close look at the digital strategies expected to define the future of the high-tech industry. The study, commissioned by Adobe (CMO.com’s parent company), found that almost 24% of high-tech businesses admit they are struggling to keep pace with ever-changing customer expectations.
This struggle will only grow, the report found, as the high-tech sector continues to invest in digital. Almost 25% of companies said they expect to deliver 61% to 80% of their products and services via digital in 2018, while 27% of businesses are contemplating delivering SaaS-based subscription services.
In terms of digital maturity, the consumer electronics subsector of high tech is the most advanced, followed closely by the software industry, according to the report. But, overall, the high-tech industry is, ironically, struggling with digital transformation. The majority of respondents cited budget as their biggest hurdle, saying they don’t receive enough funds to support the levels of innovation required.
Beyond budgetary constraints, 52% of high-tech businesses said their digital transformation is inhibited by potential security risks.
“Companies are right to be cautious about the impact on their business of a breach, but this should not lead to inaction,” the report warned. “Rather, customer protection should be firmly rooted at the core of the digital strategy, and marketers need to work closely with the offices of the CIO and CISO within their organizations to ensure marketing and security strategies are aligned and understood.”