How Are High-Tech Organizations Countering Intense Competition?
How are high-tech organizations countering intense competition? What are their challenges and priorities as they shift their organizations to digital? We wanted to delve into the depths of high-tech organizations to get an update from one of the most competitive and dynamic industries. So, this summer, we partnered with Ovum to take a closer look at the strategies that high-tech organizations are pursuing to get ahead. Following is a sneak peek of what we found.
Over the last several months, Ovum has conducted more than 300 interviews with high-tech marketing leaders across the globe to discuss the driving forces behind their digital-marketing investments and strategies. The results of these interviews highlight the many nuances that distinguish the high-tech industry from other industries, including a heightened competitive intensity and unique perspectives on internal partners. This report is essential reading for high-tech digital managers and executives, and its findings will help to shape digital strategies moving forward.
Intense Competitiveness Driven by Disruptive Technologies
One of the key findings in the report offers insight into the highly competitive nature of the high-tech marketplace. When asked to rate both the current and expected levels of competition — with 10 being the highest level and 1 being the lowest — the weighted average ‘intensity’ level was 7.64, with 60 percent of the respondents scoring the competitive level between 8 and 10. To put this into context, in our recent study of the notoriously competitive Telco industry, only 43 percent of the respondents scored the competitive intensity between 8 and 10.
We also asked these digital leaders to identify the top factors contributing to this competition. High-tech marketers revealed that their biggest concerns are new products and services causing market fragmentation and the increasing number of established high-tech vendors adding disruptive technologies to their portfolios within local markets.
Additionally, this report yielded surprising insight into how high-tech companies prioritize internal partnerships. In the early years of digital marketing, marketing teams were focused on fostering close relationships with their IT departments to accomplish their digital initiatives. In recent years, high-tech companies have shifted their focuses to work with sales departments to pursue their digital priorities. When we asked them which departments they partner with to create unified approaches to digital, almost three-quarters of high-tech marketers (78 percent) revealed that they work with sales to support unified approaches to digital, while 57 percent claimed to have a high level of collaboration with their IT departments. The most important takeaway from this data is that digital transformation is truly a companywide initiative.
This is just a small taste of the findings revealed in our survey. Download the full report to learn more about how today’s high-tech organizations are countering intense competition to get ahead in the digital realm.