In 2024 we saw a significant uptick in clients recognising the need to take a longer-term, more holistic view for their business – recognising that their desired commercial outcomes and investments in data and technology are interdependent.
That was when “survive to 2025” was a mantra in many quarters, and a tricky economy meant many organisations were forced to start thinking differently about the commercial models they’ve relied on for decades. Unsurprisingly, technology plays a big part in that thinking, but we know from experience that sport and technology are not always happy bedfellows.
A new year always brings optimism and change and so in that spirit, we’ve compiled a 10-point guide for decision-makers in the sports and entertainment industries considering their approach to technology in the next 12 months.
- Expertise: We wouldn’t expect back-office execs to become experts in technology any more than we’d expect them to ask us to coach their first teams. Not being afraid to ask for help with regards to technology strategy and application and remembering there is no such thing as a stupid question should be at the forefront of this process.
- Conflicts: It sounds obvious, but so many agencies continue to recommend their own or their partners’ tech stacks when they may not be the best fit. If you don’t have internal expertise, you need genuinely vendor agnostic and commercially-unconflicted
- Why: Invest more time in the “why?” and consideration for the long-term at the start of any major project. Too many hit a ceiling in Y2/3 and cannot thereafter scale, forcing organisations to start all over again, costing money they don’t have.
- Metrics: In line with the above we believe that Total Cost of Ownership should become a key business metric in 2025. With budgets being tight, the need to “do it once and do it well” has become ever more important. Papering over the cracks is a false economy.
- Savings: In 2025, we anticipate – much like 2024 – revenue generation for many will be difficult. Organisations should therefore consider how they might be able to create cost savings and ongoing operational efficiencies through a more strategic approach to technology design and procurement.
- …Smart Investment: And by ringfencing money from any savings made through operational efficiencies, budgeting for investment in technology could be easier than it has been in the past.
- The Six Ps: An investment in technology won’t, on its own, be a panacea. So in addition to technology Platforms, organisations need to ensure they’re also considering Planning, People, Processes, Policy and Practices.
- Supplier Sponsors: It is always tempting to opt for a partner who is also offering sponsorship money. Invariably that comes with compromise as that sponsorship money needs to be recouped elsewhere in the process. We are seeing more sports organisations recognising this but it’s still a big challenge as this approach doesn’t tend to solve the long term challenges the organisation initially set out to resolve.
- Size: Avoid being burdened by expensive long-term commitments to over-engineered technology solutions when cheaper, more suitable platforms are available by being clear on your needs and procuring accordingly. Biggest is not necessarily best.
- Competition: Don’t assume others, including direct competitors, are doing data, digital and commercial well. We see a lot of smaller organisations outperforming bigger/wealthier ones because of the smartness of their approach. Avoid copycatting by being clear on your own objectives, needs and approaches.
