Business planning meeting in London. Image (C) Tim Sandle
Three years on from the pandemic, which forced many firms to ‘digitise or die’, today the traditional non-tech enterprises have generally embraced the technology mindset. This is to the extent that, within the UK, 50 percent are considering themselves ‘tech companies’ – even if they do not have any ‘tech products’ available. Here such firms are adopting more ‘tech-like’ strategies, roles and tools to drive innovation and growth.
New research from Pendo shows evidence that the UK’s traditional enterprises are thinking and acting more like technology companies – from finance to farming, manufacturing, advertising and others.
By the mindset focus this is not only evident in the strategic trajectory but also as the first step of widespread cultural change. The appropriate culture is seen as just as important for digital transformation as the application of technology.
The study, which surveyed more than 500 R&D leaders and senior leadership at large companies (those with over 500 employees outside of the IT, software and hardware industries) highlights increased investment in AI, new hires, tools and attitudes to product more commonly associated with tech startups helping to complement the shift in business strategy and tactics.
One of the changes is apparent in the need for product management and growth roles, which 51 percent of respondents say are key hires to achieve their business goals. Another trend is with software; notably, where product analytics tools are ranking highest among product teams in non-technology companies in terms of return on investment analyses.
In relation to growth in this area, product management teams have grown in headcount by about 9 percent since 2021 within traditional enterprises and are projected to continue growing at the same rate despite the downturn.
For the majority of these companies (59 percent), the new hires have come primarily from technology companies. This includes hiring data analytics roles. Where the need cannot be adequately filled there also appears to be a business appetite for upskilling and training initiatives.
With the future skills base, 51 percent of top enterprise leaders see AI skills as important skills to realising business goals.
The survey finds that 75 percent of firms that have adopted these technologies have seen a positive impact, with 4 in 5 stating an improved ability to make informed decisions and 78 percent finding that product data and analytics are increasing efficiency when building digital products.
Product-led growth is increasingly reliant on digital technologies for the development and many of the outputs are themselves in the form of digital products.
