Digital Transformation Projects Show Increasing Improvements
September 08, 2022
Share this

Despite the challenges of the last two years, enterprises have made significant progress with digital transformation — 79% of enterprises have made significant, transformative or even revolutionary improvements to the end user experience through digital transformation over the past year, compared to 73% in 2019 and 72% in 2020, according to Digital Transformation — Lessons Learned and Strategic Setbacks, a global survey of 650 IT leaders conducted by Couchbase.

And the outlook is optimistic — on average, enterprises plan to increase their investment in digital transformation by 46% over the next 12 months.

However, enterprises still need to be aware of digital transformation challenges — 81% of enterprises had digital transformation projects fail, suffer delays or be scaled back in the past year, at an average cost of $4.12 million.

A further 82% were prevented from pursuing digital transformation projects that they wanted to implement due to factors such as a lack of resources or funds (reported by 26%), a lack of skills to deliver the project (24%) or the complexity of implementing technologies (23%).

The consequences of these failed or missed projects can be more than wasted funds — 55% of enterprises that suffered issues with their digital transformation projects had to delay their strategic goals by three months or more, or reset them completely.

Other potential consequences of failing to keep pace identified by respondents include losing valuable staff to more innovative competitors — whether in IT (41%) or other areas of the business (40%); struggling to secure finance or undergo a successful IPO (31%); or going out of business or being absorbed by a competitor (26%).

"The progress in organizations' digital transformation ambitions over the past 12 months is clear, and there's a bright future ahead," said Ravi Mayuram, cto at Couchbase. "Ideally we'll now begin to see enterprises putting into practice projects and ideas that weren't previously considered possible. For this to become reality, organizations need to learn the lessons of the last two years and address the challenges they face, or a large proportion of that 46% increase in investment may be wasted, too. IT teams need support from across the business, together with the resources they need, and the right skills and technology to succeed. From embracing the cloud, to making the best use of data, enterprises that can make use of new technologies will be best placed to thrive."

Lessons Learned

The past two years have had a transformative impact on IT teams.

95% of respondents have implemented or investigated digital transformation opportunities that would not have been realistic at the end of 2019 — from hybrid working (nearly 47%) to moving to the cloud (46%), replacing legacy technology and processes (42%), changing the way the business operates (36%) and creating new business offerings (35%).

Other findings included:
 
■ 99% of enterprises say they learned lessons from the pandemic: including the importance of supporting remote and hybrid working (45%); the need for continuous investment and research in digital transformation technologies (41%); and how to better engage the wider business in digital transformation strategy (34%).

■ Investment priorities are shifting compared to 2019: While security is still the top priority for enterprises, and hybrid working received an understandable boost, modernizing existing technology has fallen as a priority, while adopting new technologies has grown — suggesting enterprises recognize they need completely new, modern tools in order to face the future.

■ Ways of working have changed: 88% of respondents say their digital transformation goals have fundamentally changed over the last two years; 95% have accelerated their application modernization strategies; 90% have changed the way they budget for digital transformation; and 93% say digital transformation projects over the last two years represent permanent changes to the way their business's way of operating or working.

■ End users are the focus: 88% of respondents said their digital transformation projects had been driven more by changes in user behavior than by creating new business opportunities.

Digital transformation ... needs to be the responsibility of, and driven by, the whole C-suite, rather than left solely in IT's hands

"This is an exciting time for the IT industry. We are entering a period of extreme creativity, as organizations shift from digital transformation driven by reacting to outside events, such as the pandemic or competitors' progress, to a more proactive approach driven by ideas from within the business," continued Mayuram. "For this new creativity to work, it needs to be driven from the top. Digital transformation shouldn't only be aligned to strategic goals. As a transformative business asset it needs to be the responsibility of, and driven by, the whole C-suite, rather than left solely in IT's hands. If businesses can do this and put the lessons they learned from the last two years into practice, then the future looks very bright indeed."

Share this

The Latest

October 03, 2022

IT engineers and executives are responsible for system reliability and availability. The volume of data can make it hard to be proactive and fix issues quickly. With over a decade of experience in the field, I know the importance of IT operations analytics and how it can help identify incidents and enable agile responses ...

September 30, 2022

For businesses with vast and distributed computing infrastructures, one of the main objectives of IT and network operations is to locate the cause of a service condition that is having an impact. The more human resources are put into the task of gathering, processing, and finally visual monitoring the massive volumes of event and log data that serve as the main source of symptomatic indications for emerging crises, the closer the service is to the company's source of revenue ...

September 29, 2022

Our digital economy is intolerant of downtime. But consumers haven't just come to expect always-on digital apps and services. They also expect continuous innovation, new functionality and lightening fast response times. Organizations have taken note, investing heavily in teams and tools that supposedly increase uptime and free resources for innovation. But leaders have not realized this "throw money at the problem" approach to monitoring is burning through resources without much improvement in availability outcomes ...

September 28, 2022

Although 83% of businesses are concerned about a recession in 2023, B2B tech marketers can look forward to growth — 51% of organizations plan to increase IT budgets in 2023 vs. a narrow 6% that plan to reduce their spend, according to the 2023 State of IT report from Spiceworks Ziff Davis ...

September 27, 2022

Users have high expectations around applications — quick loading times, look and feel visually advanced, with feature-rich content, video streaming, and multimedia capabilities — all of these devour network bandwidth. With millions of users accessing applications and mobile apps from multiple devices, most companies today generate seemingly unmanageable volumes of data and traffic on their networks ...

September 26, 2022

In Italy, it is customary to treat wine as part of the meal ... Too often, testing is treated with the same reverence as the post-meal task of loading the dishwasher, when it should be treated like an elegant wine pairing ...

September 23, 2022

In order to properly sort through all monitoring noise and identify true problems, their causes, and to prioritize them for response by the IT team, they have created and built a revolutionary new system using a meta-cognitive model ...

September 22, 2022

As we shift further into a digital-first world, where having a reliable online experience becomes more essential, Site Reliability Engineers remain in-demand among organizations of all sizes ... This diverse set of skills and values can be difficult to interview for. In this blog, we'll get you started with some example questions and processes to find your ideal SRE ...

September 21, 2022

US government agencies are bringing more of their employees back into the office and implementing hybrid work schedules, but federal workers are worried that their agencies' IT architectures aren't built to handle the "new normal." They fear that the reactive, manual methods used by the current systems in dealing with user, IT architecture and application problems will degrade the user experience and negatively affect productivity. In fact, according to a recent survey, many federal employees are concerned that they won't work as effectively back in the office as they did at home ...

September 20, 2022

Users today expect a seamless, uninterrupted experience when interacting with their web and mobile apps. Their expectations have continued to grow in tandem with their appetite for new features and consistent updates. Mobile apps have responded by increasing their release cadence by up to 40%, releasing a new full version of their app every 4-5 days, as determined in this year's SmartBear State of Software Quality | Application Stability Index report ...