Priorities for Adopting an Exponential IT Mindset in the Transportation & Logistics Industry
Adopting exponential IT is critical for business growth and sustainability.
The market is evolving rapidly. Transportation and logistics companies need to know:
- Where to focus for exponential change.
- How to manage costs and evolving technology.
- How to scale up in times of rapid growth.
Our Advice
Critical Insight
- Transportation and logistics organizations are facing challenges maintaining their competitiveness due to heightened competition, the use of legacy equipment, and large amounts of technical debt.
- Enabling innovation is crucial for improving the business’ competitive positioning, and IT leaders need to be recognized as valued business partners to empower the organization to embrace exponential technologies.
Impact and Result
- Predict shifts in market priorities and technology.
- Enable technology spend proactively tied to customer satisfaction and employee wellbeing.
- Modernize through Exponential IT to combat disruption and accelerate adoption of game-changing technologies.
Priorities for Adopting an Exponential IT Mindset in the Transportation & Logistics Industry
Adopting Exponential IT is critical for business growth and sustainability.
Analyst perspective
Enable value creation through Exponential IT.
From digitizing service models to computerizing operations, information technology – including the new influx of artificial intelligence processing – has drastically changed organizations.
Opportunities are multiplying at an exponential rate, thanks to the rapid pace of technological change. To make the most of these opportunities, IT executives will need to transform into business leaders who can unlock advanced value and insights for their company while reducing exponential risk by implementing an IT transformation. But in the world of Exponential IT, where new skills and capacities are needed, innovation readiness is often still a mystery.
The transportation industry is urged to rapidly implement Exponential IT to address potential industry disruptions.
Businesses need to grasp the main priorities of Exponential IT transformation to stay competitive in today's challenging environment. Recognizing and integrating core foundational capabilities are considered crucial initial steps in starting a successful Exponential IT transformation, resulting in generating value in the industry.
Kevin Tucker
Advisory Practice Lead, Data and Architecture
Info-Tech Research Group
Executive summary
Your challengeEnabling human-machine processes and capabilities to remain competitive and relevant is increasingly difficult. IT leaders struggle to identify which skills are needed and where to get specialized knowledge to keep up with the exponential shifts taking place across their industry. Increasing customer demands and the need for greater health and safety are pushing the transportation industry to prioritize transformations to deliver frictionless services. |
Common obstaclesCustomers are demanding personalized services and transparency, which is difficult for transportation organizations due to complexity and cost constraints. Real-time data-driven capabilities are critical for dynamic adaptability during market shifts, environmental concerns, and competitive pressures. Organizations need to develop low-risk, sustainable, and environmentally friendly business processes and policies for the new world. Upskilling, reskilling, and ensuring wellbeing are essential. |
Info-Tech’s approachRecognize the urgency of adopting Exponential IT within the transportation industry to combat industry disruptions. Comprehend the four priorities of Exponential IT transformations in the transportation industry that are being adopted today to remain competitive and deliver transparency within the market. Acknowledge the foundational capabilities and maturity required to begin an effective Exponential IT transformation, resulting in exceptional customer value creation. |
Info-Tech Insight
Transportation organizations face challenges in maintaining their competitiveness due to heightened competition, customer demand for up-to-the-minute transparency, and zero-carbon regulations, which have forced the entire industry to rethink its strategy. It is a critical time for businesses to elevate their innovation and partnership game, and IT leaders need to be recognized as valued business partners using exponential technologies to enable rapid change.
Info-Tech Research Group: EXPONENTIAL IT
What is Exponential IT?
Exponential IT is a framework defined by Info-Tech Research Group.
The technology curve has recently bent exponentially.
Generative AI has been the catalyst for this sudden shift, but there are more and more new technologies emerging (e.g. quantum computing, 5G), putting significant pressure on all organizations.
Speed is now imperative. All IT leaders and organizations are at risk of falling behind if they do not adopt new technologies fast enough.
Our framework instructs all IT leaders on how to transform their organization and elevate their value-creation capabilities, to close the gap between the exponential progression of technological change and the linear progression of IT’s ability to successfully manage that change.
This research provides IT leaders with industry-specific priorities for Exponential IT and how to begin an effective Exponential IT transformation, resulting in value creation.
Your Exponential IT Journey
To keep pace with the exponential technology curve, adopt an Exponential IT mindset and practices. Assess your organization’s readiness and embark on a transformation journey. This report will provide greater insights to help you build your Exponential IT Roadmap.
To access all Exponential IT research, visit the Exponential IT Research Center
Go to this link
Adopt an Exponential IT Mindset
The focus of this report
Info-Tech resources:
Exponential IT Research Center
, Research Center
Overview
, and
Keynote
Explore the Art of the Possible
Info-Tech resources:
Exponential IT
research blueprints
for nine IT domains
Gauge Your Organizational Readiness
Repeat Annually
Info-Tech resource:
Exponential IT Readiness Diagnostic
Build an Exponential IT Roadmap
Repeat Annually
Info-Tech resource:
Develop an Exponential IT Roadmap
blueprint
Embark on Your Exponential IT Journey
Info-Tech resources:
Ongoing and tactical domain-level research and insights
The pace of technological change will continue to increase exponentially in transportation
IT must solve the problem of rapidly and exponentially increasing expectations.
Organizations are adopting exponential technologies at an accelerated rate due to the rapidly changing landscape. Traditional linear IT is no longer viable to sustain IT’s place as the leading technology provider for their organization.
Failure to launch will leave you far behind. The chasm between the organization’s desire to harness technology and IT’s ability to deliver it will continue to widen.
The challenges with traditional linear IT:
- Slow to adapt to more modern service delivery models
- Processes and decision-making that can’t accelerate to meet demand
- Transactional arms-length relationships with organization units and vendors
- Insufficient funding and focus on technology innovation
- Locked into a siloed and hierarchical operating model
The Case for Exponential IT
IT needs to fundamentally transform the way it is operating in the following ways:
- Build an Adaptive Delivery Model: Enable flexible and efficient delivery of products and services.
- Optimize & Autonomize Operations: Maximize efficiency while mitigating risks through intelligent automation and data-driven decision-making.
- Broker Strategic Relationships: Strengthen and build both external and internal relationships to better align IT capabilities to organizational goals.
- Embrace Digital Innovation: Evaluate and adopt solutions that drive consumer value, enterprise growth, and innovation.
- Cultivate Workforce Flexibility: Dismantle traditional jobs and hierarchies, normalize new collaborative ways of working, and adopt a federated and hybrid IT operating model.
The transportation industry has significant challenges in adopting Exponential IT
Integrated, Frictionless Transportation
- Evolving and enabling autonomous processes and capabilities to remain competitive and relevant is increasingly difficult.
- Adapting quickly within this ever-changing market is becoming more essential to business success.
- Organizations risk failing to remain competitive and succeed within the industry if organizational business processes do not adapt to market needs.
Technology-Driven Sustainability
- IT and business leaders struggle to have highly specialized knowledge of emerging technologies and trends to drive this rapid shift. Deep understanding of Exponential IT is required to enable innovation and maintain competitiveness.
- Traditional products and services are changing to remain competitive. The industry delivers value through traditional means of transportation services with a human-centric operating model and strategy, and change management is complicated.
Global Labor Shortages
- Increasing competition from more attractive industries is pushing the transportation industry to provide better offerings and opportunities to progress into better roles.
- Continuous innovation is needed as customers and employees seek targeted content and media that make their journeys more interesting, informed, and reliable.
- As the economy changes, customer, partner, and employee perception of the value of transportation services has declined, causing attracting and retaining employees to become more challenging, especially with older companies using outdated technologies.
48%
of UK traders would trade more if the process was simplified.
Source: Port of Antwerp Bruges
41%
of public transportation leaders say improving customer experience is a top strategic goal.
Source: KPMG, 2022
58%
of companies are investing in environmental, sustainability, and governance (ESG) initiatives, and 33% are investing in emerging technologies.
Source: KPMG, 2022
96%
of public transit agencies had labor shortages and 34% of transportation companies turned away business because of shortages.
Source: APTA, 2023 & CFIB, 2023
Navigate industry disruptions by adopting Exponential IT in the transportation industry
Market Disruptions and Obstacles
-
Increased automation and partnerships to fill labor gaps
- The transportation market struggles to find and keep employees as other industries become more attractive and retirements rise.
- Changes to traditional models are required to leverage technology to hire and engage with employees. Also, use partnerships to fill unique roles.
-
Mobility as a service (MaaS)
- Customers and employees demand instant information, and MaaS can provide that instant information and hyperpersonalized services.
- MaaS also offers the ability to provide services and experiences across a myriad of device types.
-
Seamless and frictionless services and experiences
- The IT department is not typically viewed as a business partner, but IT must build out seamless and frictionless capabilities across the ecosystem.
- Exponential IT initiatives require alignment with the business strategy so that IT can have a collaborative foundation for developing business services.
-
Decarbonization and the sustainable digital footprint
- Taking an environment-first approach is becoming more common as new processes and technologies are becoming more readily available.
- Showcasing the environmental and financial value, such as ROI, can be challenging due to the high number of emerging/immature technology
Info-Tech Insight
As transportation preferences evolve, market expectations also undergo shifts, which is not just a challenge but a call to strategic adoption. Meeting those expectations requires a set of foundational capabilities to properly execute initiatives and drive IT to become a strategic enabler.
Business opportunities are developed from industry disruptions
Challenges
Evolutionary Resilience
Technological Prowess
Zero Carbon Footprint
Market Expectations and Obstacles
- Increased automation and partnerships to fill labor gaps
- Mobility as a service
- Seamless and frictionless services and experiences
- Decarbonization and the sustainable digital footprint
Business Opportunities
Higher Skills & Lower Costs
Transportation struggles with talent as other industries become more attractive. Leverage technology and partnerships to hire talent.
Access Any Time & Any Place
Meet increased demand for instant information and hyperpersonalized services. Provide services and experiences across a myriad of device types.
Human-Machine & Self-Autonomization
Overcome fear-based resistance to automation. Human-machine collaboration is a game changer.
Zero-Carbon & Zero-Waste Processes
Leverage elevated solutions for regulatory compliance. Be attentive to the environment to eclipse the minimum requirements.
If IT leaders cannot lead this upcoming transformation, then the organization will move forward without them
Only 2% of CXOs report that their IT department can transform the organization. Most IT departments (77%) still struggle to adequately support the organization.
33% of CXOs believe that their IT department must reach the highest level of Info-Tech’s IT maturity ladder to best serve the organization in the future. 42% of CIOs agree.
Info-Tech CXO-CIO diagnostic benchmark data, 2023, n=229 CXOs
Source: Info-Tech CXO-CIO diagnostic benchmark data, 2023, n=229
Info-Tech Insight
As organizations strive to succeed in the next phase of technology-driven transformation, CIOs have an opportunity to demonstrate their organizational leadership. To do so, they will have to start delivering organizational capabilities instead of services while owning organizational targets.
Determine IT’s innovation maturity to assess Exponential IT readiness
Complete the CIO Business Vision Diagnostic to understand business needs and satisfaction with IT.
IT must score above 70 to be properly supported by the business and prepared for an Exponential IT shift.
Evaluate IT’s capability effectiveness and importance in executing Exponential IT
Complete the Management & Governance Diagnostic to assess core IT processes for improvement.
To properly execute Exponential IT, the organization must understand IT’s strengths and weaknesses for effectively managing and improving the department for innovation.
Collect the data the organization needs to start the process improvement journey and enable Exponential IT. The organization will get a customized report highlighting its most pressing IT process needs based on the following color coding.
Any processes that require improvement or evaluation should be prioritized for advancement before starting the Exponential IT journey. These core processes are required to effectively execute standard IT processes before innovating to Exponential IT processes.
Leverage Info-Tech’s Exponential IT Diagnostic to gauge readiness
Complete the Exponential IT Diagnostic to determine organizational and IT readiness for exponential technologies.
Info-Tech’s Exponential IT Readiness Diagnostic is designed to assess the readiness of your organization to embrace and extract value from exponential technologies. It measures executive stakeholder perceptions of organizational readiness for transformation and IT leader perceptions of IT readiness for transformation.
This readiness assessment is a crucial initial step in the Exponential IT journey to help you understand the needs, opportunities, and priorities of stakeholders across the organization.
Organizational readiness
Organizational readiness refers to perceived readiness to adopt exponential technologies and willingness to change into a more adaptable, forward-looking organization.
Without strong organizational readiness for transformation, IT will need to take extra steps to drive technology adoption, break down silos, and gain support for its own transformation efforts.
IT readiness
IT readiness includes current maturity across all IT domains, willingness and support for transformation, and foundational elements required for Exponential IT.
Without a high IT readiness for Exponential IT, the transformation roadmap may need to include additional foundational change efforts in its first year.
Key Exponential IT roadmap concepts
About Info-Tech
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Unlock Sample ResearchContributors
- Anu Ganesh, Deputy Chief, Strategy and Enterprise Architecture, Metropolitan Transportation Authority
- Bob Verret, CIO, Dupre Logistics