Digital 'fixation' causing firms to throw good money at bad projects
Organizations risk wasting millions of dollars in the next 12 months, as they rush into flawed digital projects.
That is the finding of a new report from data platform provider Couchbase. The company commissioned research firm Vanson Bourne to survey 450 technology executives from the U.S., U.K., France, and Germany online in June and July 2018.
More than half (52 percent) of organizations surveyed said a fixation on digital transformation had raised the risk of rushing into ill-thought-out projects, meaning much of their average planned spending of $28 million in the next 12 months could be wasted.
The risk of rushing in is being driven by rising pressure to transform, with 85 percent of respondents saying disruption in their industry has accelerated over the past 12 months. A majority (86 percent) also said businesses will have to adapt to providing digital services in the next 12 months, or accept that they will become less relevant.
Other findings include: 95 percent of respondents think digital transformation can seem an insurmountable task, meaning projects are more likely to be unsuccessful; organizations spent an average of $24 million on digital transformation projects in the last 12 months; 35 percent said the primary driver for digital transformation is advances made by competitors, 23 percent changes in regulation, and 19 percent pressure from customers.