MuleSoft's 2022 Connectivity Benchmark Report found that 70% of organizations struggle to provide completely connected user experiences across all channels. At the same time, the report noted that almost three-quarters (72%) of organizations' customer interactions are now digital.
Digitalization is accelerating, and organizations could lose on average nearly $7 million in revenue if they fail to complete digital transformation initiatives successfully. MuleSoft's 2022 Connectivity Benchmark Report, in partnership with Vanson Bourne and Deloitte Digital, was produced from interviews with 1,050 IT leaders across the globe.
Here's an executive summary of the report:
Here are 13 powerful takeaways from the 2022 Connectivity Benchmark Report:
2. The financial cost of slow digital transformation is significant: It's calculated that they could lose on average nearly $7 million ($6,846,979) if they fail to successfully complete digital transformation initiatives.
3. Adoption of apps is accelerating, but integration is falling behind: The average number an organization had this year was 976, a large increase from the figure a year ago (843). This could be an indication of growing shadow IT deployments in organizations during the pandemic. But more importantly, only 28% of these apps on average are integrated, down slightly from 29% in the 2021 report. The average lifetime for a typical application has also grown slightly to 4.1 years.
4. Firms are spending too much on custom integration: On average, companies spent $3.65 million in custom integration labor in 2021 versus $3.5 million in the previous 12 months.
5. Data silos are persistent: Some 90% of respondents cite silos as a challenge, the same number as in the 2021 report, showing that little progress has been made in this crucial area.
6. Integration demands grow across the enterprise: Data scientists are most likely to have requirements for unlocking and integrating data (49%), followed by business analysts (44%), then customer support (42%).
The most pronounced integration challenges were:
Also: Global research: 3 out of 4 professionals do not feel ready to work in a digital-first world
7. IT budgets continue to rise: 85% of responding organizations said this was true versus 77% in the 2021 report and 75% in the 2020 report. The number of projects IT is asked to deliver has increased by 40% in 2022, a jump from 30% in 2021. Over half (52%) of projects weren't delivered on time last year.
8. IT is struggling to deliver on time: On average, 52% of projects weren't delivered on time over the past 12 months. However, the good news is that IT is more likely to be completing all the projects asked of them than in the period covered by the 2021 report: 44% versus 37%.
9. Organizations find it harder to integrate user experiences: Over half (55%) of organizations are finding it difficult to integrate user experiences. Nearly a third (30%) of organizations are able to provide completely connected user experiences across all channels.
10. Security and governance top integration challenges: Over half (55%) of organizations say it's difficult to integrate user experiences, up from 48% a year ago. The biggest challenges are:
11. Leadership now mandates a company-wide API strategy: The vast majority (98%) of organizations now use APIs. The number who mandate a company-wide API integration strategy has surged to 26% from 15% just a year ago. Nearly half (46%) of internal software assets are available for reuse, and 55% of organizations have a mature or very mature strategy for non-technical users.
12. APIs are helping organizations drive more value and revenue: APIs can unlock major revenue growth opportunities. Over a third (35%) of organizations' revenue is now being generated by APIs and related implementations. Organizations are recognizing that the combination of API-led connectivity and automation can deliver better employee and customer experiences. A third (31%) of organizations plan to invest in robotic process automation (RPA), more than double the figure of a year ago.
Organizations said API-led connectivity has enabled them to:
Also: Employee satisfaction increases as a result of automation in the workplace
13. Automation emerges as a key ingredient: Nearly a third (31%) of organizations plan to invest in robotic process automation (RPA), versus 13% a year ago. Most are currently managing this (67%) and tracking it (58%) centrally via IT. It is IT developers (72%) and IT operations (66%) who are most involved in automating business processes and tasks.
The report concludes that digital transformation has become a critical driver of customer engagement and employee productivity.
Here are the four recommendations for business leaders, according to the research findings:
To learn more about MuleSoft's 2022 Connectivity Benchmark Report, you can visit here.