Manufacturers and distributors increasingly have evidence that technology can create business value. According to Grassi’s 2026 Manufacturing & Distribution Technology Pulse Survey Report, 71% of respondents report measurable or significant business value from their technology investments. Only 4% identify unclear ROI as their biggest barrier to getting more value from technology.
The challenge is no longer making the case for technology investments, but rather turning them into consistent results. The primary barriers are practical ones: legacy systems, limited resources, employee adoption and technology investments that are not sufficiently connected to operational goals.
Legacy Systems and Data Can Complicate Modernization
New technology rarely operates independently of the systems and data supporting the business. As such, an organization’s existing technology environment is a key factor in how quickly new capabilities can produce results.
Legacy systems are among the most frequently cited barriers in the report, identified by 20% of respondents as the single biggest obstacle to getting more value from technology investments. Data presents another challenge, as only 23% of respondents report fully integrated enterprise data with real-time visibility.
A new platform may address an immediate business need, but its effectiveness depends on how well it connects with existing systems, information and processes.
Before committing more resources, organizations should identify technology and data dependencies that could constrain the investment. This can help leadership determine whether the organization has the foundation required to support the intended use.
Resource Constraints Make Prioritization Essential
Technology initiatives compete for capital, personnel and management attention. Budget and resource constraints were identified by 20% of respondents as their largest barrier to realizing more value from technology, tying legacy systems as the most cited barrier.
When resources are limited, organizations need clear priorities to distinguish between initiatives that are potentially useful and those that warrant immediate investment. Leadership teams should assess which investments address the most important business needs and which have the organizational support necessary to move forward.
This also means being realistic about capacity. An initiative may make strategic sense but still compete with other investments for internal talent, funding or leadership attention. Sequencing those initiatives deliberately can help the organization focus resources where they are most relevant to current priorities.
Technology Initiatives Should Start with Outcomes
Technology selection can easily become the starting point of a modernization discussion. A stronger approach is to begin with the outcome the business needs to achieve.
The report reinforces the importance of connecting technology investments with broader business and operational goals. This changes the questions leadership teams should ask.
Instead of beginning with “What technology should we implement?” they should first consider what needs to improve operationally. Is the goal greater visibility into the business? A more effective workflow? Once the desired outcome is clear, leaders can evaluate technology according to its role in supporting that objective.
However, technology alone does not resolve every operational issue. Processes, responsibilities and workflows may also need to change. Starting with the operational goal creates a clearer basis for determining what technology should do and what changes the organization must make around it.
Workforce Adoption Is Part of the Equation
Employee adoption plays an important role in how technology becomes part of day-to-day operations.
Among respondents, 59% report improvements in collaboration, flexibility and employee experience, while 55% report improved employee productivity. At the same time, 24% say technology has created change resistance or adoption barriers.
For leadership teams, workforce readiness should be a consideration from the beginning of an initiative rather than an issue reserved for implementation.
Organizations should anticipate how a new capability will affect responsibilities and workflows, who will use it and what employees need to incorporate it effectively into their work. Clear ownership, communication and training can support that transition.
Success Should Be Measured by Business Results
Technology investments should be evaluated against two questions:
- “Was the technology put in place?”
- “Did it produce the results the organization expected?”
The distinction matters because completing an implementation does not necessarily mean the investment achieved its objective.
Success measures should connect directly to the reason an initiative was undertaken. A business investing to improve access to information, for example, should evaluate whether that access actually improved. An initiative intended to support workforce productivity should be assessed against the relevant productivity objectives.
Execution Is the Next Priority
Manufacturers and distributors have already advanced considerably in their technology journeys. 43% of respondents are actively scaling technology across functions and business units, while another 40% are modernizing existing systems and investing in new capabilities. However, only 7% report having technology embedded enterprise-wide as a strategic advantage.
The report suggests that for many manufacturers and distributors, the question is no longer whether technology can create value, but how effectively the organization can capture it. For leadership teams, this shifts the technology conversation from investment to execution: choosing priorities deliberately, removing operational barriers and making new capabilities part of how the business works.
Contact a Grassi advisor to discuss how your organization can get more value from its technology investments.
