The Guide to Getting Your Tech Companies Ahead in 2022

Tech companies and market forces are progressing fast as they advance online marketplace marketing and sales techniques improved by machine learning, AI, and augmented and virtual reality apps. These rapid developments create existing and new types of General Liability Insurance exposures critical to safeguarding a company’s financial future against catastrophic losses and bankruptcy. And so, this report provides insights tech companies can use to help them prosper. 

Tech Innovation and Implementation Continues in Troubled Times

The marketplace conditions have been brutal. However, it’s too soon to shed severe concerns regarding the pandemic, global economic and political situations, and evolving public opinion. This year has turned into a scenario of accelerating invention, business practices, and strategy. Concurrently, technology continues to transform virtually all mechanical and electronic devices into smart devices. And the result is creating new markets and sales opportunities for companies that manufacture, sell, and utilize them. 

As we move to the mid-point of 2022, companies of all sizes are trending toward adopting new business models to maintain their industry relevance and competitive advantages. And to no surprise, they seek to increase their marketing by utilizing technological innovations.  

Additionally, we see simultaneous broad societal trends such as rapid population growth, demographic shifts in the global population, and evolving economic systems poised to change how vendors and consumers use technology. Finally, we see how marketing and delivering tech solutions yield change in the tech marketplace.

Marketplace Trends for Tech Companies to Note

Life and business change and evolve naturally. However, it does not go at the pace of the unexpected twists we witness in the early 2020s. We’ve identified the following noteworthy trends as potential business applications and situations affecting your business.

Workplace Woes, Advantages, and Evolution of Tech Companies

The pandemic forced most companies to adopt the Work from Home model immediately. This development altered and blurred the definition of the workplace. It produced a change as traditional offices became full-time work-from-home models creating pluses and minuses for companies to address. 

Employees are returning to post-COVID normalcy, demanding different requirements from employers. Many want to stay remote, while others prefer to operate in remote and in-person attendance. Nearly all seek more flexible arrangements to work from anywhere. It is possible due to the the advantages technology offers them. 

The rapid shift to remote work has prioritized IT departments that formerly only managed the main headquarters plus some satellite branches versus a convoluted maze of residential homes. Therefore, many firms that created stand-alone solutions to accommodate the impact have made them permanent for their employees. In addition, we covered the implications of these dynamic changes and associated risks in our Return to Work Policies Tied to Employment Practices & D&O Liability post.

Managed services providers are taking over the management of the residential nodes on networks to increase security and streamline processes. On a positive note, channel firms have found new opportunities in selling hardware and edge-based security products during the work-from-home migration. 

Regulatory Reach and Reaction

Regulation is a lengthy ongoing process without a clear end in sight. Concerns from consumers and user groups about the direction and operation of big tech companies are potentially troublesome. For example, consumer groups have an increasing appetite for tech companies to be transparent with their customers. Also, they wish to work with regulators to keep their operations in compliance and above board, and embrace customer relationships over vendor relationships.

Government rule over the technology industry continues as tech innovations transform users’ lives and businesses. These developments have caused tech firms to become unprecedented industry giants with potential PR opportunities and disasters. 

Legislation Complications for Tech Companies

No matter how new legislation intends to help, it also is complicated for several reasons:

• First, antitrust principles and general business practices differ from country to country. Technology can cross borders more efficiently than any other industry before it, highlighting vast cultural and philosophical differences. 
• Second, regulatory policies often focus on issues that may not apply to the digital economy. For instance, regulations designed to protect against price-gouging are not always applicable to free internet services. 
• Third, the ongoing debates between governments and tech firms add complexity to the process.

Tech Companies and Developments

A residual and powerful side effect of the persistent coronavirus pandemic is that consumers and clients openly question if they can trust tech giants like Facebook, Google, Amazon, Apple, Twitter, and Microsoft. These questions are valid because many believe tech companies have an unfair advantage due to their size and market dominance. Instead, it puts regulators around the globe on notice. It also additionally puts them at work to determine what role these companies played in spreading misinformation during the outbreak. As a result, these five developments continue to unfold: 

1. Regulators worldwide are investigating the spread of false information by social media platforms.
2. Governments are requesting tech companies develop programs and systems to prevent future outbreaks of misinformation.
3. Tech companies must take responsibility for the content posted on their platforms.
4. Regulators want transparency from tech companies regarding their algorithms.
5. Regulators are demanding clear guidelines for online communication.

Technology Budget Creep Growth

As technology becomes more strategic and less tactical, its budget grows outside the IT department domain. And so, IT departments are helping businesses to get the best use of tech instead of simply providing it. This scenario is particularly true in cases where new technologies are included and integral to more significant initiatives. However, more businesses outsources aspects of their technology operations because of complexity and need for specialization.

Questions for Management When Reviewing Tech Expenditures:

• What do you want to achieve?
• What type of technologies are most appropriate for the purpose? 
• Is the cost of the new tech budget, including its trailing expense in training, personnel, and maintenance, affordable and worth the investment?

Lacking Cybersecurity Dev in Channel Firms

It is surprising and disappointing that channel firms lag in providing cybersecurity strategies and specialization. Cybersecurity is becoming a strategic business for channel firms that embrace it because, currently, most do not offer specialized cybersecurity services. 

This situation is unfortunate because now is the time that channel firms should double down on cybersecurity. Missing this step is more than a lost opportunity; it creates potential significant problems on multiple levels, including sales, public relations, marketing, brand reputation, legal errors, and omission liabilities. Nevertheless, recent studies found that most channel firms only offer basic anti-virus and firewall protection without other more sophisticated tools and services.  

The Movement Toward Proactive Cybersecurity

At the C-level, the group mentality is that cybersecurity is fluid as the focus evolves from operating static perimeter security to an active defense model. Therefore, it is incumbent on companies to invest in technology, personnel, and processes to thwart cyberattacks before they occur. They must rapidly respond when they happen.

Execs must be aware that threats from within the company are genuine and as dangerous as external cyberattacks. As a result, C-level execs, managers, and cybersecurity professionals must work in tandem to protect the company from threats no matter their origin.

Protecting the Tech Component Supply Chain

A hard lesson for tech firms is that customers’ perceptions of the company’s supply chain are their reality. To clients, a company is only as good as its supply chain. And their trust is broken when options for shipping dates are nonexistent or beyond reasonable waiting times.

Consumer sentiment is the most crucial reason companies should hold stock of critical components. Lengthy wait times during COVID or other reasons should cause companies to plan for unexpected shortages. Doing this helps deter supply chain backlog problems. Clients put “deliver on time” trust in the seller. These are solid points for continuing with the globalized economy model.

Companies that don’t carry current inventory are at increased risk of losing market share. Additionally, they risk losing customer goodwill because they can’t deliver on promises and general consumer expectations.

There is still time to add local warehouses and factories. These developments are a competitive advantage against companies without them, and they also improve how they compete against those who already offer them. 

A significant result of the chip shortage fiasco is that it questions the just-in-time machining model. As a result, many tech companies now reconsider the value of stockpiling inventory, parts, and components nearby without waiting for clients to order them.

Growing Trend Toward Consulting

Companies are using online marketplaces to source technology that has the effect of excluding channel companies and thus sends them looking for new business opportunities. Accordingly, many are now moving to offer their expertise to assist customers in reviewing and purchasing technology. And the outcome is that business consultants can make a massive impact on the success of tech firms seeking their recommendations.

Technology consultants advise and influence clients’ purchasing decisions. They help steer customers into making the most appropriate technology choices to operate their businesses by breaking down what features to use. Then, they demonstrate how to integrate new tech into their existing infrastructure and how to secure the data that flows through the system. Technology consultants can become even more important when they help customers avoid buying the wrong solution. The trend toward channel companies offering their advice as paid consultants is an expected growth mode for the coming decade. They will continue to respond and adapt to evolving customer needs by providing solutions their clients can use and rely on to operate more efficiently. 

Protect Your Assets

As the growing tech landscape evolves to stay relevant to marketplace needs and demands, the necessity and importance of General Liability Insurance protection are imperative. The Dickstein Associates Agency is ready to deploy its expertise to help protect your business against potential liability exposures and ruinous financial losses. In addition, our team will address your unique risk exposures and recommend a comprehensive insurance protection program from a top-rated carrier at competitive prices.

About Dickstein Associates Agency

Dickstein Associates Agency has distinguished itself as a leading provider of personal and business insurance in the tri-state area since 1965. We pride ourselves on being advocates for our clients and providing them with quality and affordable coverages. As Trusted Choice™ independent insurance agency, we partner with various national and regional carriers, allowing for flexible coverage for each client’s unique circumstances. For more information on how you can leverage all your insurance to work best for you, and how we can secure the best insurance in the marketplace suited to your specific needs and business objectives, contact us today at (800) 862-6662 or www.dicksteininsurance.com.