which emerging technologies are enterprise companies getting serious about in 2020?

New companies must focus on future possibilities. They develop strategic plans, create products, and consistently enhance them with a view toward the coming year—or even further into the future.

Larger organizations, frequently the intended clients of startups, operate with a much shorter-term perspective. They acquire technologies that address current challenges, rather than potential issues that may arise later. Essentially, they prioritize practical solutions now, while many tech entrepreneurs are focused on innovations for tomorrow.

This disparity can result in significant wasted effort for startups aiming to sell to large enterprises, creating a frustrating sales cycle. Startups may discuss technological advancements and evolving customer needs that executives within the larger company—even those with roles in “innovation,” “IT,” or “emerging technology”—do not yet perceive as critical priorities or cannot effectively advocate for internally.

How can startups circumvent this unproductive situation? Recent research conducted by my firm, Innovation Leader, in partnership with KPMG LLP, offers a helpful strategy.

Instead of directly inquiring about the technologies large companies were investigating, we categorized them based on their level of commitment. (Our survey included 211 participants, with 62% from North America and 59% representing companies with annual revenues exceeding $1 billion.) We asked respondents to evaluate a list of 16 technologies, ranging from advanced analytics to quantum computing, and assign each to one of four categories. The survey was completed in the latter part of the third quarter of 2020.

The first group consisted of companies “not exploring or investing”—essentially, those with no current interest. Quantum computing topped this list.

The second category, representing a lower level of commitment, was “learning and exploring.” At this point, a startup’s role is to inform potential corporate clients about an emerging technology, though securing a firm commitment to purchase remains distant. Building relationships at this stage can be beneficial, but sales teams should not anticipate immediate revenue.

The following five technologies were most frequently placed into the “learning and exploring” category, listed in order:

1. Blockchain.
2. Augmented reality/mixed reality.
3. Virtual reality.
4. AI/machine learning.
5. Wearable devices.

Technologies in the third group, “investing or piloting,” potentially represent the most favorable opportunity for startups. At this stage, the corporate client has identified an internal problem or application where the technology could be valuable. They may have allocated initial funding and established internal departments or external test sites for pilot programs. They are often evaluating solutions from established technology providers like Microsoft, Oracle, and Cisco—and may find those options inadequate.

Our survey respondents ranked the technologies in the “investing or piloting” category as follows:

1. Advanced analytics.
2. AI/machine learning.
3. Collaboration tools and software.
4. Cloud infrastructure and services.
5. Internet of things/new sensors.

By the time a technology reaches the fourth category, “in-market or accelerating investment,” it may be challenging for a startup to gain traction. There is a clear understanding of the technology’s use cases and problems it solves, and return-on-investment metrics have been defined. However, providers have likely already been selected based on successful pilots, and displacing an existing vendor can be difficult. While possible, it requires significant effort.

The survey respondents categorized the following technologies as “in-market or accelerating investment,” in this order:

1. Collaboration tools and software.
2. Cloud infrastructure and services.
3. Emerging mobile technologies and apps.
4. Advanced analytics.
5. Internet of things/new sensors.

The presence of technologies on multiple lists indicates that some companies are still piloting certain technologies, while others have already deployed them. Furthermore, different industries may be at varying stages of adoption. For instance, healthcare respondents were more likely to place emerging mobile technologies in the fourth category, while financial services respondents prioritized collaboration tools. In the consumer products sector, robots and collaboration tools were equally ranked as the leading technologies in the final stage of investment.

Startups can learn from this data: When engaging with potential customers, it’s wise to ask questions that reveal their position within these four stages. If they use terms like “researching” and mention attending numerous webcasts or virtual conferences on a topic, they are likely still in the “learning and exploring” phase. When they begin discussing “evaluating vendors,” “developing a business case,” and “securing internal buy-in,” they may be entering the optimal third stage. And once you see a press release, coverage in TechCrunch, or the technology in practical use, it has likely reached the final stage.

However, even within the same industry, large, established companies differ in their readiness to invest in new technologies. Investigating their current stage will save startups time and frustration—and increase their chances of evolving into large, established companies themselves.