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Research Report

The State of the Technology Industry 2025

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January 21, 2025

Overview

Challenges
The emergence of AI capabilities presents both an opportunity and a challenge, urging companies to adapt to maintain competitiveness. This report highlights and discusses the critical organizational capabilities that companies can adopt to keep their competitive edge.
Summary
The report discusses pivotal trends affecting the technology industry as it heads into 2025, highlighting the urgent need for companies to leverage AI capabilities and rethink traditional organizational structures. Amidst decreasing SG&A spending ratios and mounting financial pressures, firms must innovate their engagement approaches to enhance customer value and operational efficiency.

Included in the full report

Financial Performance Pressure:

Technology companies are under increasing pressure to enhance revenue profitability, evidenced by decreasing SG&A spending percentages.

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AI Deployment Challenges:

Many legacy tech firms face obstacles like data quality issues and immature AI roadmaps, limiting their ability to utilize AI effectively for ROI.

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Reengineering Organizational Models:

Companies are reevaluating traditional departmental structures, merging functions like customer success and support to improve efficiency and response to client needs.

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Adapting Pricing Strategies:

Firms are exploring new pricing models that align closely with customer outcomes, reflecting the necessity to maintain margins in a changing employment landscape.

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Critical Capabilities for Competitiveness:

Building a unified customer engagement model and empowering AI-native account executives will be essential for thriving in a data-driven market.

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