At the very least, executives must understand the digital technology they need to run their companies.  If they fail, they will waste money, undermine their competitive positioning and ultimately – in the age of total digital – threaten their company’s very existence. So what should they know?

The call here is not for executives to drop everything and enrol in masters programs in computer science or information technology.  Executives should understand the basic topics and technologies that can help them save money and make money.

Topics

Executives should understand that there’s technology that keeps the trains running on time (like ERP and CRM systems) within their companies and the technology that powers the products and services they sell in the marketplace.  This the difference between operational and strategic technology.

Executives must understand the role that data plays in their tactical and strategic operations.  They need to understand where data comes from, how it’s organized and “cleaned” and how it’s analysed to generate descriptions, explanations, predictions and prescriptions.  They should understand the need to invest in the collection and analysis of large and small data sets, as well as the role that real-time analytics plays in their operational and strategic effectiveness.

Executives should appreciate the competition for technology talent.  They should understand how competitive – and expensive – talent acquisition is today and is likely to remain for the foreseeable future.  The skills and competencies of employees are changing, and executives should accept that many of their “legacy” employees may not have what it takes to accomplish the company’s mission today or especially tomorrow.  Executives should develop dashboards that describe technology investments by current and emerging competitors.

Executives must understand the full range of technology sourcing options at their disposal.  The trade-offs among in-sourcing, co-sourcing and outsourcing must be debated and discussed among executives, managers and vendors.  When organized effectively, sourcing is a competitive advantage; when poorly managed, it can undermine the delivery of even superior products and services.

All executives must invest in innovative models, processes and technologies.  Innovation itself must become a priority through the best practices that work best for their industry and companies.

Technologies

Executives do not need to understand the inner workings of specific technologies – unless, of course, technology inner workings is their business.  The challenge for executives is to understand the most impactful technologies today as well as the technologies likely to be the most impactful in the immediate future.  The definition of “immediate” is key since no one can predict the technology winners and losers in 2030.  Three-to-five years out is just fine.

Here’s a selective – and by no means complete – list of the technologies every C-Suiter should understand

Artificial intelligence (AI), machine learning (ML)  and generative AI (GAI) are easily the most important technologies executives should understand.  They must understand how AI/ML/GAI will impact their products and services as well as how their competitors are leveraging AI/ML/GAI for competitive advantage.  The Internet-of-Things (IOT)/Internet-of-Everything (IOE) is a basket of sensor, data and analytics technology that will integrate people, processes and devices across all vertical industries.  Executives should discuss how IOT/IOE will impact their companies.

Development technologies are also changing quickly.  Ten years ago application development was far more difficult than it is today.  Low-code and no-code platforms, as well as open-source programming repositories like GitHub, have changed development forever.  Executives should understand the opportunities these development platforms and technologies present their companies at a high enough level of understanding so they can appreciate what it takes to design, develop and deploy applications that run and grow their business.  They must also understand the role that GAI will have on development and how low-code, GitHub and GAI will together “replace” programming.

Cloud computing is a technology basket that executives should understand, especially the skyrocketing adoption of all things remote.  Software-as-a-service will be the primary delivery mechanism for internal and external computing and communications technology.  Executives need to understand the trajectory here as well as the opportunities (and risks) cloud computing presents their companies.

Emerging technologies include a variety of digital tools and techniques that may – or may not – disrupt business models and processes.  Tracking the “celebrity” technologies – like AI/ML/GAI, IOT, advanced analytics, 5G/6G, blockchain, cybersecurity, robotics, and augmented and virtual reality – is necessary:  executives should understand the broad applicability of emerging technologies and how they might impact their companies.

Executives must understand technology’s ubiquity.  Every company relies upon internal and external technology to save money and make money.  Executives – the entire C-Suite – must embrace the technology that enables their missions.  The need for technology awareness has never been greater, which is why the need for executive education has never been more timely.

Conclusion

Executives trying to optimize their technology investments must understand the basics. Some knowledge of the prevailing technology trends is necessary. Some knowledge of how these trends translate to specific lists of “hot” technologies is also necessary.  Executives also need some context, some awareness of the implications of widespread technology deployment which enables optimization, or at least the possibility of optimization. Said a little differently, the more knowledge executives have about technology, the less money they will waste.

Stephen J Andriole is Professor of Business Technology & Author of The Digital Playbook:  How to Win the Strategic technology Game