How Smart Companies Turn Economic Challenges into Opportunities to Get Ahead

Requirements & Requirements Management

How Smart Companies Turn Economic Challenges into Opportunities to Get Ahead

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How Smart Companies Turn Economic Challenges into Opportunities to Get Ahead

How Smart Companies Turn Economic Challenges into Opportunities to Get Ahead

In the past, when economic uncertainty hits, most companies instinctively tighten their belts and cut spending to prepare for the worst. But what if this conventional wisdom is wrong? What if the smartest move during tough times is actually to invest more aggressively in technology and innovation? Let’s dig into the data and lessons we can learn.

Recent research from Accenture shows overwhelmingly that companies that scaled (and some even doubling down on) their technology investments during the COVID-19 pandemic didn’t just survive…they thrived, growing revenue 5X faster than their peers and competitors. And while the pandemic created a unique dynamic of economic, political, and social challenges, there are lessons here that can be learned during any economic uncertainty, including the headwinds we’re seeing right now.

It’s no secret that the pandemic wasn’t just a health crisis; it was a massive stress test for business resilience. However, companies that emerged stronger shared a lot of common characteristics, including investing heavily in cloud infrastructure, artificial intelligence (AI), and digital transformation while their competitors were thinking more shortsightedly by cutting costs.

In fact, these “LEADER” companies didn’t just weather the storm…they used it as a launching pad for unprecedented growth.

The “Leaders,” “Leapfroggers,” and the “Laggards”

Accenture’s comprehensive study included 4,300 companies across 25 countries and showed three distinct categories of technology adopters during the pandemic.

Leaders represent the top 10% of companies that had already established strong technology foundations before COVID-19. These organizations stepped up their adoption of cloud computing, AI, and IoT technologies when the crisis hit. Their strategic advantage? They were already positioned to scale quickly when opportunity knocked.

Leapfroggers make up 18% of the sample and represent perhaps the most interesting group. These companies accelerated what would typically be multi-year digital transformations into mere months. They moved aggressively (and strategically) from being technology followers to leaders, demonstrating that timing and execution matter more than just being first.

The “Laggards” are the bottom 25% of companies that only recently began investing in new technologies. The decision to invest was made primarily just to maintain basic operations during the pandemic. This “reactive” approach to technology adoption left Laggards struggling to keep pace with market changes. Many still feeling that impact now.

What we’re seeing is that the financial results speak volumes. The Leaders are now growing revenue 5X faster than Laggards — a huge increase from the 2x growth differential that existed pre-pandemic. The widening of this gap demonstrates that technology investments are creating compound advantages over (a short period of) time.

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Strategic Technology Investments That Drove Growth

It’s also clear that the companies that succeeded during COVID-19 didn’t just increase their technology spending randomly; they made strategic investments and changes in specific areas that delivered immediate and long-term value.

Cloud Infrastructure

Cloud adoption emerged as the foundation for pandemic-era success. And for Jama Software customers, this should come as no surprise.

Among Leapfroggers, 80% had adopted some form of cloud technology by 2017, but this figure jumped to 98% by 2020. More importantly, 72% of Leaders accelerated their cloud security investments, while 68% increased their hybrid cloud spending.

This cloud-first approach provides the flexibility and scalability needed to support remote work, handle fluctuating demand, and rapidly deploy new capabilities – all of which was key to success during the pandemic, and now. Companies with robust cloud infrastructure could pivot quickly as market conditions change.

Artificial Intelligence and Machine Learning (ML)

The study showed that 59% of Leaders accelerated their AI and ML investments during the pandemic. These technologies allowed companies to analyze rapidly changing market conditions, optimize supply chains, and personalize customer experiences at scale. All factors that made the difference between success and failure during the pandemic.

AI-powered analytics helped companies identify new opportunities in real-time, while machine learning algorithms optimized everything from inventory management to customer service. Organizations who invest in these capabilities are able to make data-driven decisions faster than their competitors.

IoT and Process Automation

The research showed that 70% of Leaders increased their Internet of Things (IoT) investments, while 60% accelerated (or invested in) robotic process automation (RPA) adoption. The outcome was that these technologies eliminated manual processes, reduced errors, and freed up human resources for higher-value activities.

The companies who invested in process improvement saw incredible outcomes. IoT sensors provided real-time visibility into operations, enabling predictive maintenance and optimized resource allocation. RPA handled routine tasks, allowing employees to focus on strategic initiatives and customer relationships. The investments paid dividends.

Investments in Collaboration

While collaboration may feel like a “soft skill” investment, it can make a huge difference to your bottom line.

70% of leading companies looked to aggressively increase funding for training to build an agile and collaborative organization. By prioritizing employee development and leveraging digital collaboration tools, these organizations foster better communication, faster decision-making, and more cohesive teamwork.

Examples of these investments included virtual platforms, real-time communication technologies, and programs that encouraged cross-functional alignment. The result? Improved project execution, enhanced innovation, and stronger connections across distributed teams, driving both operational efficiency and global scalability.

Three Strategic Imperatives for Digital Transformation

The research shows that the most successful companies during the pandemic followed three key strategic imperatives. These are the lessons that can guide any organization through economic uncertainty. Let’s call these the 3 Rs.

(R) Replatform to the Cloud

Leaders moved beyond basic cloud adoption to build what Accenture calls “Systems Strength.” This means reducing redundant technologies (maybe this can be our 4th R), eliminating disconnected data silos, and gaining the computing power and flexibility that cloud platforms provide.

But cloud replatforming isn’t just about moving existing systems to the cloud — it’s about rethinking (or reimagining) how technology supports business objectives.

Companies that approach cloud migration strategically can easily scale resources up or down based on demand, experiment with new capabilities quickly, and integrate disparate systems more effectively.

(R) Reframe with Innovation-First Strategy

Successful companies shifted from viewing technology as a cost center to treating it as a growth engine. 67% of Leapfroggers sought to aggressively increase revenue from non-core business lines, using technology to explore new markets and business models.

This innovation-first mindset encourages experimentation and rapid iteration – and it clearly pays off. Companies that embrace this approach can test new products, services, and market strategies without massive upfront investments.

(R) Reach Across All Business Functions

Technology investments delivered the greatest returns when they extended across entire organizations rather than being confined to IT departments. 65% of Leaders prioritized employee happiness through digital-based flexible work arrangements, compared to just 43% of Laggards.

This holistic approach to technology adoption creates seamless interactions between humans and machines, improved collaboration across departments, and built organizational capabilities that support long-term growth. There’s that “soft skill” investment again, paying off handsomely.

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Prioritizing Employee Experience and Collaboration

If you’re reading this, we don’t have to tell you that the pandemic fundamentally changed how people work, and successful companies recognized that technology investments must support human needs as well as business objectives. We’re all living proof of that.

Digital-First Work Arrangements

Companies that thrived during COVID-19 didn’t just enable remote work; they reimagined work itself, perhaps for the first time in decades. They invested in collaboration platforms, digital communication tools, and virtual meeting technologies that made distributed teams as effective as co-located ones. While some company leaders feared working from home might decrease productivity, those who embraced the new way of working saw that employees actually adapted quickly and efficiently to the change. Many employees found that without office distractions, they were actually MORE productive and efficient.

And so the data shows that these investments in employee experience paid dividends in terms of productivity, retention, and recruitment. Companies with superior digital work environments began to attract top talent regardless of geographic location.

Human-Machine Collaboration

66% of Leaders focused on creating seamless interactions between humans and machines (the theme of the decade, maybe?). This approach recognized that technology should augment human capabilities rather than replace them. This is a practice we stand behind as an organization, always including “human in the loop” in our AI process workflows.

Successful companies designed workflows that leveraged both human creativity and machine efficiency. The successful balance was AI handling data processing and pattern recognition, while humans focused on strategy, relationship building, and creative problem-solving.

Agile and Collaborative Structures

70% of Leaders invested aggressively in training to build agile and collaborative organization structures. An investment that these companies recognized required corresponding changes in how teams work together.

Agile methodologies enabled rapid response to changing market conditions, while collaborative tools broke down silos between departments.

The outcome is that companies that have mastered both technology and organizational agility adapt quickly to new challenges and opportunities.

Quantifiable Benefits and ROI of Technology Investment

The financial returns from strategic technology investments during the pandemic were substantial and measurable.

Revenue Growth Acceleration

Like we said above, Leaders achieved 5x faster revenue growth than Laggards, showing a significant acceleration from the 2x advantage that existed before the pandemic. This widening gap clearly shows that technology investments create compound advantages over time.

Leapfroggers achieved 4x faster revenue growth than Laggards, proving that aggressive technology adoption can quickly close competitive gaps. These companies demonstrated that multi-year digital transformations can actually be done in months, achieving rapid ROI on their technology investments.

Operational Efficiency Gains

Companies that invested in automation and AI reported significant efficiency improvements. Process automation reduced manual effort by up to 50%, while AI-powered analytics accelerated decision-making and improved accuracy.

Cloud infrastructure investments provided both cost savings and operational flexibility. Companies could scale resources based on demand, reducing waste ($$$) while ensuring adequate capacity for growth.

Market Expansion Opportunities

Technology investments enabled companies to enter new markets and serve new customer segments. Digital platforms reduced barriers to entry, while data analytics provided insights into customer needs and preferences.

67% of Leapfroggers actively sought to increase revenue from non-core business lines, using technology to explore new opportunities. This diversification strategy was able to reduce dependence on traditional revenue sources and create multiple paths to growth.

Practical Lessons for Companies Facing Economic Downturns

The success stories from the pandemic provide a roadmap for any organization facing economic uncertainty.

Invest Aggressively in Core Technologies

Economic downturns create opportunities to gain competitive advantages while competitors are cutting costs. Companies should prioritize investments in cloud infrastructure, AI, and automation technologies that deliver both immediate efficiency gains and long-term strategic value.

Focus on technologies that eliminate manual processes, improve decision-making, and enable rapid response to market changes. These investments provide measurable ROI while building capabilities for future growth.

Compress Digital Transformation Timelines

Economic pressure creates urgency that can actually accelerate digital transformation. Companies should use downturns as opportunities to make bold changes that might be difficult during normal times.

Leapfroggers compressed multi-year transformations into months by focusing on high-impact initiatives and accepting some risk. This aggressive approach enabled them to emerge from the crisis stronger than before.

Focus on Employee Experience and Collaboration

Technology investments must support human needs as well as business objectives. Companies that prioritize employee experience through digital tools and flexible work arrangements will attract and retain top talent.

Invest in collaboration platforms, communication tools, and training programs that enable effective remote and hybrid work. These investments pay dividends in productivity, retention, and recruitment.

Embrace an Innovation-First Mindset

View technology investments as growth engines rather than cost centers. Look for opportunities to enter new markets, serve new customer segments, and create new revenue streams through digital capabilities.

Encourage experimentation and rapid iteration. Economic downturns provide cover for bold moves that might seem risky during normal times.

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Building Resilience Through Strategic Technology Adoption

The pandemic taught us that economic disruptions are inevitable, but they don’t have to be devastating. Companies that invest strategically in technology during downturns can emerge stronger and more competitive.

The key is to view economic uncertainty not as a threat to be weathered, but as an opportunity to build advantages that competitors can’t easily replicate. Technology investments made during difficult times often deliver the highest returns because they’re made with focus and urgency.

Organizations considering technology investments during economic downturns should remember that the gap between leaders and laggards continues to widen. The companies that act decisively now will be positioned to capture disproportionate growth when conditions improve.

For teams managing complex development processes, ensuring regulatory compliance, and coordinating global collaboration, the lessons from pandemic-era success stories are particularly relevant. Strategic technology investments can streamline operations, reduce manual effort, and create scalable systems that support both current needs and future growth.

Explore Jama Connect Today

Ready to transform your organization’s approach to requirements management and compliance? Jama Connect has helped hundreds of the world’s leading companies scale and thrive during uncertainty. Discover how our platform can help you reduce documentation time, ensure regulatory compliance, and build the collaborative workflows that drive sustainable growth — even in challenging economic conditions.

Disclaimer: This blog post was written with the assistance of AI, particularly the portions summarizing Accenture Research. This blog post was edited and reviewed for accuracy by Kenzie Jonsson, Mario Maldari, and Decoteau Wilkerson.

Mario Maldari
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