Organisations today understand the importance of technology, but many are still unsure of how to seize the potential of digital transformation. Companies worry it can have a negative impact on their revenue.
According to the 2020 Connectivity benchmark report by MuleSoft on the state of IT and digital transformation, 85% of organisations struggle with integration challenges and are stalled in their digital transformation.
The more than 800 CIOs and IT decision-makers (ITDMs) in organisations with at least 1,000 employees surveyed clearly identified integration as the number one reason why new initiatives fail. This causes more than half of organisations to continue to provide disconnected customer experiences across channels.
Fewer resources for transformation
According to the report, organisations have not been able to follow the speed of innovation. Sixty-four per cent of ITDMs state it is very difficult to introduce new technologies due to the available IT infrastructures of their organisations.
ITDMs are clearly concerned with the negative impact of slowing down digital transformation, but they struggle to make it a priority.
Half of respondents stated their IT budgets will increase by less than 10% this year, even though their project workloads are expected to skyrocket by 40% (up from 32% last year).
This lack of concern with digital transformation will most likely result in a decline in revenue unless the situation changes in the next year, according to respondents. Still, there is hope.
Reassessing investment priorities
Digital transformation has been firmly established as a strategic imperative for businesses. Almost all respondents – 92% – are currently involved in initiatives or planning to do so in the next year.
The top IT investment priorities for 2020 are security (53%), Big Data and Analytics (48%), multi-cloud strategy (41%), and AI/Machine Learning (41%).
However, all of these require a deep integration with existing systems. This means that organisations should start prioritising integration in digital transformation within their strategic plans and budgets.
Read the full report here.