Balancing Emerging Tech Investments with Day-to-Day Operations

Emerging technologies are reshaping industries at an unprecedented pace, presenting both opportunities and significant challenges for businesses. Leaders across industries grapple with a fundamental tension: how to balance strategic investments in innovation while maintaining efficient day-to-day operations. At PwC’s Emerging Tech Exchange, I had the privilege of moderating a discussion on this very topic. The session focused on three core areas:  

1) Aligning long-term tech investments with immediate operational priorities 

2) Measuring ROI in an era of AI-driven transformation 

3) Managing cultural and structural resistance to change. 

Strategic Alignment and Investment Prioritization 

A major theme that surfaced in our discussion was the challenge of making sure that innovation efforts align with an organization’s overarching business goals. The balancing act involves maintaining existing systems and processes while simultaneously allocating resources for future growth. One of the key strategies discussed was the concept of investment capacity frameworks, such as the 70-20-10 model: 

• 70% of investment is dedicated to maintaining and optimizing existing operations. 

• 20% focuses on advancing new capabilities. 

• 10% is reserved for exploratory, high-risk emerging technologies. 

This model allows companies to sustain core operations while still driving innovation. Another takeaway was the importance of dedicated innovation funds that enable businesses to develop future capabilities without disrupting immediate priorities. The discussion also touched on the significance of decentralized decision-making, allowing business units to experiment while aligning with enterprise-wide strategies. 

Measuring ROI in Emerging Tech Investments 

Quantifying the return on investment (ROI) of technology initiatives—particularly in areas like AI—remains a key challenge. Traditional financial metrics often fail to capture the full value of emerging technologies, making it necessary to adopt a more nuanced approach. 

Several KPIs were identified as effective for measuring success, including: 

• Efficiency Gains – Reductions in processing times, such as a decrease in call center resolution time or automation-driven labor cost savings. 

• Customer Experience Improvements – Measured through Net Promoter Scores (NPS), voice-of-customer metrics, and satisfaction surveys. 

• Financial Impact – Metrics like operating cash flow improvement, inventory turnover, and return on capital were highlighted as essential indicators of value. 

• IT Efficiency Ratio – Defined as IT spend divided by total company spend, this metric provides insight into how technology investments drive business value over time. 

Navigating Resistance and Enabling Cultural Change 

Technology investments are not just about infrastructure—they are also about people. Organizational resistance to change remains one of the biggest barriers to successful technology adoption. Key insights from our discussion included: 

• Empathy-Driven Leadership: Leaders must recognize and address employees’ concerns about technological disruption, particularly in the age of AI. Many employees fear that automation and AI-driven efficiencies could threaten job security. A proactive communication strategy that focuses on augmentation rather than replacement can help alleviate these concerns. 

• Empowering Business Units: Rather than dictating innovation from the top, organizations should create mechanisms that allow business units to drive their own transformation initiatives. 

• Incentivizing the Right Behaviors: Aligning incentives with strategic priorities helps teams focus on the highest-value opportunities. For example, shifting cloud cost accountability directly to development teams can encourage cost-conscious decision-making. 

• Redefining Governance for Speed and Agility: Organizations need to rethink traditional governance models to enable faster innovation cycles while still managing risk effectively. The challenge is balancing regulatory compliance and security requirements with the need to experiment and iterate rapidly. 

Looking Ahead: Key Considerations for Leaders 

As we look to the future, several takeaways stand out for technology leaders: 

• Adopt a Learning Mindset: Staying ahead in emerging technology requires continuous learning and adaptability. Leaders should actively engage with new tech developments and explore their practical applications within their industries. 
• Foster a Culture of Experimentation: Encouraging rapid experimentation—within guardrails—can help organizations identify the most impactful innovations while managing risk. 
• Align Technology with Business Outcomes: Shifting the conversation from IT cost control to value creation helps position technology investments as strategic enablers rather than operational expenses. 
• Balance Innovation with Execution: While the excitement of emerging tech can be compelling, organizations must remain disciplined in execution to make sure investments translate into measurable business value. 

As technology continues to evolve quickly, businesses that successfully balance innovation with operational excellence will be best positioned for long-term success. While challenges remain, thoughtful investment strategies, clear ROI measurement frameworks, and strong leadership can help organizations navigate this complex landscape.