Report: Orgs wasted $4.12M on failed digital transformation projects

We are excited to bring Transform 2022 back in-person July 19 and virtually July 20 – 28. Join AI and data leaders for insightful talks and exciting networking opportunities. Register today!

According to a new report by Couchbase, 88% of IT leaders said their digital transformation projects had been driven more by changes in user behavior than by creating new business opportunities. The research, done in partnership with Vanson Bourne, also found that although digital transformation projects are improving, enterprises still wasted on average $4.12 million per organization on failed, delayed or scaled-back initiatives. Moreover, 82% of enterprises were prevented from pursuing digital transformation projects in 2021, and 80% had projects fail, suffer delays or be scaled back.

While some of this was due to external factors made worse by the pandemic, many issues were caused by a reliance on legacy technology, problems accessing or managing relevant data or a lack of skills to deliver digital projects. These results indicate a clear need for change in organizations’ tech stacks, especially given that 89% reported that their organizations are at risk if they fail to modernize in the next 12 months (with consequences including losing valuable staff to more innovative competitors or simply going out of business).

Fortunately, with 99% of respondents saying they learned something from the pandemic, looking into the next year and beyond, the lessons learned from failed projects are predicted to inspire new actions. Ninety percent of enterprises have changed the way they budget for digital transformation, with investments in modernization efforts growing by 46% over the next year. Further illustrating this trend, 95% percent of respondents have implemented or identified digital transformation opportunities that would not have been realistic at the end of 2019. Of those organizations, 46% are transitioning to the cloud and 42% are replacing legacy technology and processes.

Couchbase conducted its fifth annual survey of 650 IT leaders in organizations with 1,000 or more employees across the U.S., U.K., France, Germany, Spain, Italy, Turkey and Israel.

Read the full report by Couchbase.

VentureBeat’s mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Learn more about membership.

Source: Read Full Article