Australian businesses could potentially lose an average of A$6.5 million if they fail to follow through on digital transformation initiatives.
In a new report from MuleSoft, the software maker said 70% of a given organization’s customer interactions are now digital.
In contrast, 67% of Australian businesses struggle to deliver fully connected user experiences across all channels, creating immense pressure to stay afloat.
The 2022 Connectivity Benchmark Report combines insights from 100 CIOs and IT decision makers across Australia, as well as surveys of CIOs from the US, UK, France, Germany, Netherlands, Bas, Singapore, Hong Kong and Japan.
The report is designed to draw attention to the obstacles and opportunities for businesses as they navigate the looming digital future of adapt or die.
According to the report, more than a third of Australian business leaders are now calling for an enterprise-wide API strategy to unlock data and enable connected experiences.
MuleSoft CEO Brent Hayward says delivering connected digital experiences to customers and staff is a growth expectation and requirement in today’s competitive landscape.
Hayward adds that siled applications and data are holding back customer experience and digital transformation, driving down millions in annual revenue for businesses.
“Companies need to be able to easily integrate a growing number of applications and data sources to automate their business, create seamless digital experiences and drive growth,” says Hayward.
The report notes that apps are the most integral component of digital transformation and improved user experience.
Last year, companies used 884 individual applications; this year, the figure is 974.
However, the report indicates a significant opportunity to improve the experiences of connected users, as, on average, only 28% of the applications used are integrated.
Some of the key findings of the 2022 Connectivity Benchmark Report are:
- Growing Difficulty Creating Connected User Experiences: 44% of companies said they struggled to integrate user experiences in the latest report. This number has increased to 55% this year, demonstrating the complexity of the task for many organizations. Additionally, 96% of respondents say integration challenges slow down digital transformation initiatives the most.
- Lack of internal knowledge: 56% of CIOs surveyed cite lack of internal knowledge as the most difficult element to incorporate into user experiences. In comparison, 55% say the infrastructure is outdated and 53% say the inability to keep up with ever-changing processes, tools and systems is the most difficult.
- Positive business benefits come from integrated user experiences: Of those that offer integrated user experiences, 57% of companies say it has improved visibility into operations and innovation. Additionally, 54% report better ROI and increased adoption of automation, and 52% say they have seen growth in customer engagement.
- Digital experiences and initiatives are being held back by integration issues: 97% of organizations cite data silos as a major barrier to creating integrated user experiences, a 3% increase since the last report.
- Integrating siled apps and data is also tricky, with 44% saying it’s the biggest challenge. Risk management and compliance follow at 43%.
- Custom integration creates more financial worries than it solves: By attempting to integrate applications and data, many organizations focus their resources in the wrong areas. Bespoke onboarding labor is proving particularly expensive, with companies spending A$3.56 on it over the past 12 months.
- Rising demand has driven up costs: 89% of companies say IT budgets have increased year over year, up from 78% the year before. However, the amount of work expected from IT also increased, from 33% to 42%. But in most cases, 57% of projects weren’t delivered on time in the last year due to IT struggling to keep up with demand, even with an increasing budget.
However, all companies surveyed use application programming interfaces (APIs) despite integration challenges.
As a result, the report concludes that 92% of companies have a simple integration and API strategy.
Additionally, 34% say business leaders expect all projects to be compliant with enterprise-wide API integration strategies, a 10% increase from last year. ‘last year.
52% of companies say IT also actively uses reusable IT assets and APIs for more efficient workflows, with 46% of software assets and internal components available for developers to reuse, up 4 % since last report.
As part of their digital journey progress, companies are also helping non-technical employees use low-code tools to manage their own automation and digital transformation projects, bringing much-needed relief to IT teams.
This resulted in 57% of companies (compared to 33% last year) having a very mature or mature strategy for instilling confidence in these employees in integrating API-powered applications and data sources.
Additionally, 25% of companies said the growing integration of APIs into their workflow drove revenue growth last year, a figure that rose to 46% in the latest report.
“Digital agility is essential to successful transformation, enabling organizations to drive innovation at scale, deliver new initiatives faster, and create the experiences customers want,” said Kurt Anderson, CEO of Deloitte. and responsible for API transformation.
Anderson adds that the combination of integration, API management, and automation represents the most up-to-date strategy and is key to moving businesses digitally.
“It enables organizations to easily connect and integrate their data, applications and devices to create new digital capabilities and drive transformation projects,” says Anderson.