As a complement to our comprehensive Technology & Software Pulse Survey 2023, we sat down with industry expert Adrian Carr, CEO, Stibo Systems, to delve deeper into the key topics highlighted in the survey. His comments provide a first hand insight into the key aspects raised in this survey, and the sentiments and strategies shaping the industry’s future.
1. Growth Prospects for 2024
What is your assessment of the growth prospects for the remainder of 2023 and 2024?
• Survey: 63.5% of global executives are cautiously optimistic about the remainder of 2023.
• Adrian Carr: I believe growth will continue to increase as we move towards the end of 2024. Assuming no further shocks to the market, businesses are getting used to the current/continuing economic climate and need to start innovating to avoid stagnation.
2. Growth Dynamics – International vs. Domestic
Where do you see growth, especially when comparing international to domestic markets?
• Survey: A significant 80.8% are eyeing international growth.
• Adrian Carr: The UK seems to be mastering inflation faster than the Eurozone and the US is further ahead than both. This will drive interest rates lower and increase spending. The highest growth is being seen the US, then UK then Eurozone and I believe that the growth across the APAC region will continue to be slow.
3. Priority Markets and Key Drivers
Which geography is a priority market for you, and what are the key drivers in that market?
• Survey: Europe emerges as the priority market for 43% of respondents.
• Adrian Carr: Interestingly, we are personally seeing a different trend not prioritising Europe but the US is our top priority for growth and the potential that we have in this market is huge. The key drivers continue to be increased efficiency as well as M&A activity. On a micro level, companies moving to SAP4Hana is also driving substantial IT infrastructure projects. In Europe, Sustainability is becoming a driver for growth and shows exciting prospects in the future.
4. Business Focus for the Next 12 Months
Over the next 12 months, which factors will be most important for your business?
• Survey: 67.3% emphasize on profitable growth for the next 12 months.
• Adrian Carr: Profitable growth is the number one focus. Ideally, we are aiming for the rule of 40 (Growth % + EBITDA% > 40%).
5. Impact of Generative AI
To what extent will Generative AI impact your business over the next 5 years?
• Survey: Generative AI is anticipated to have a significant impact over the next five years by 56.9% of businesses.
• Adrian Carr: Like many CEOs, I have mixed feelings on this topic. The fear is that we are missing out or about to become irrelevant by a new paradigm. The excitement is about what we could deliver if we are bold enough to take a leap instead of many small steps. It is obviously going too have a huge impact and something that we all need to plan for.
Related: For a broader perspective on these topics and more, explore our Technology & Software Pulse Survey 2023.
Interviewer: Stuart Ridley
Please feel free to contact Stuart Ridley directly via email email@example.com should you have any questions or would like to discuss the above or anything else further.