A new report into organisational digital transformation journeys says that huge numbers of firms are struggling to create connected user experiences across channels, owing to a number of tech pitfalls that are hindering the process.
The report, put together by integration and API platform, MuleSoft, comes at a time when almost three quarters of businesses’ customer interactions are digital. But organisations stand to lose an average of $7 million in revenue should digital transformation initiatives remain incomplete.
Data silos have been identified as one of the chief integration challenges hindering digital ventures, with almost all (90%) of entities polled citing this as a headache. Risk management and compliance were also considered problematic.
Furthermore, in attempts to integrate apps and data from across the enterprise, organisations appear to be focusing more resources in the wrong areas, such as custom integration. As a result, technical debt is on the up – on average, global organisations spent $3.65 million on custom integration labour over the last 12 months, a 4% increase from last year’s figure of $3.5 million.
Brent Hayward, CEO, MuleSoft, said:
“In this all-digital world, customers and employees expect truly connected experiences.
“However, siloed applications and data continue to hinder customer experience and digital transformation — and it is now costing businesses millions of dollars per year. Companies need to be able to easily integrate a growing number of apps and data sources to automate their business, create seamless digital experiences, and drive growth,” Hayward added.
The vast majority (90%) of organisations are turning to application programming interfaces (APIs) to help drive this transformation efficiently, sustainably, and in ways that minimise risk.
Most companies reviewed in the report said they have a clear integration and API stratedy, with over a quarter stating that leaders now want all projects to align with company-wide API integration strategy – that’s up from just 15% a year ago.
Kurt Anderson, managing director and API transformation leader, Deloitte Consulting LLP, said:
“Digital agility is essential to successful transformation, allowing organisations to drive innovation at scale, deliver new initiatives faster, and create the experiences that customers want.
“A modern strategy that combines integration, API management, and automation is central to achieving digital agility. It enables organizations to easily connect and integrate their data, applications, and devices to create new digital capabilities and drive transformation projects,” Anderson added.