Digital Transformation Investment Set to Increase by 46% Over the Next 12 Months, Couchbase Research Finds
Digital transformation projects show increasing improvements, but enterprises still wasted on average
However, enterprises still need to be aware of digital transformation challenges. Eighty-one percent of enterprises had digital transformation projects fail, suffer delays or be scaled back in the past year, at an average cost of
The consequences of these failed or missed projects can be more than wasted funds. Fifty-five percent 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
The past two years have had a transformative impact on IT teams. Ninety-five percent 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.
"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
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1 Methodology: An online survey was conducted in February -
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Media Contact: James Kim, Couchbase Communications, couchbasePR@couchbase.com, (650) 417-7500