Even among enterprises that have a digital transformation strategy in place, the actual execution of that plan may be stalling out. A recent survey released by Appian and conducted by DevOps.com highlights the various reasons that digital transformation isn’t being prioritized in some organizations.
The survey, which included 463 leaders in business and IT, demonstrates that, in many enterprises, the challenges of technical debt and the push for new applications are drowning out enthusiasm for digital transformation. While organizations have their sights on innovation that includes launching Internet of Things initiatives, artificial intelligence, and machine learning, the reality is that development often gets crowded out by daily tasks. Here are some of the most pressing factors that are slowing a migration to the cloud:
Technical debt: Enterprises often have debt related to technology, but in some cases, this debt is in equipment or licensing that is in a complicated tangle with other technology, masking whether the return on investment is even calculable. For some organizations, the cost of terminating a service contract or other costs may prevent them from innovating their infrastructure or applications.
Talent shortage: The survey indicated that 82 percent of respondents reported difficulty with retaining or attracting software engineers capable of executing the specific plans of their digital transformation. CIOs also need more talent to simply handle the everyday backlog of IT. One in five respondents reported at least 50 major application requests that were waiting to be fulfilled by their teams. Sixty-one percent said that they had at least ten applications waiting for implementation.
Complexity of the task: Digital transformation isn’t a task that can simply be handed off to the new software engineer, nor can these steps be implemented without heavy investment. Yet 52 percent of respondents say they don’t expect more than a 10 percent increase in their budgets in the next year.
Meanwhile, enterprises recognize the driver of digital transformation: the customer experience. With marketers promising a personalized experience and customers wanting seamless experiences that load quickly and offer excellent performance, the competition to offer these benefits is important. Digital transformation has disruptive potential, and can determine which companies thrive and which fade.
For now, it seems that most enterprises feel they are keeping up with customer demand, with 71 percent of respondents saying their current technology adequately meets customer expectations. At the same time, 72 percent say the same technology won’t support necessary growth.
If the above findings sound like the situation at your company, TeleConsult Solutions is here to help. We provide technology solutions, but also work to partner with you through your digital transformation, offering guidance and matching you with the right providers. Contact us for more information.