Report: Organizations wasted $4.12 million on failed digital transformation projects
VB Staff
2 min read
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According to a new report from Couchbase, 88% of IT leaders said their digital transformation projects were fueled by changes in user behavior rather than the creation of new business opportunities. The study, conducted in collaboration with Vanson Bourne, also found that while digital transformation projects are improving, organizations still waste an average of $4.12 million per organization on failed, delayed, or scaled-back initiatives. Additionally, in 2021, 82% of companies were prevented from undertaking digital transformation projects, and 80% had projects fail, suffered delays, or were scaled back.
Some of this was due to external factors made worse by the pandemic, but many problems were caused by reliance on outdated technology, problems accessing or managing relevant data, or a lack of skills to execute digital projects. These results point to a clear need for change in organizations’ tech stacks, especially given that 89% said their organizations are at risk if they don’t modernize in the next 12 months (with consequences including losing valuable employees to more innovative competitors or simply leaving). closed).
Fortunately, with 99% of respondents saying they have learned something from the pandemic and looking to the next year and beyond, lessons learned from failed projects are predicted to inspire new action. Ninety percent of organizations have changed their digital transformation budgeting, with investment in modernization efforts set to increase by 46% over the next year. This trend is further illustrated by the fact that 95% of respondents have implemented or identified digital transformation opportunities that would not have been realistic at the end of 2019. Of these companies, 46% are moving to the cloud and 42% are replacing legacy technology and processes.
Couchbase conducted its fifth annual survey of 650 IT executives at companies with 1,000 or more employees in the US, UK, France, Germany, Spain, Italy, Turkey and Israel.
Read Couchbase’s full report.
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