MuleSoft, provider of the world’s #1 integration and API platform, reported that 67% of organizations in Australia struggle to provide connected user experiences across all channels.
MuleSoft’s 2022 Connectivity Benchmark Report, released today, shows that this comes at a time when 70% of organizations’ customer interactions are now digital.
Yet, as digitalization accelerates, organizations could lose on average $6.5 million ($6,532,500) in revenue if they fail to successfully complete digital transformation initiatives.
To grow in today’s competitive environment, companies need to deliver connected digital experiences — for both customers and employees. “In this all-digital world, customers and employees expect truly connected experiences,” said Brent Hayward, CEO, MuleSoft.
“However, siloed applications and data continue to hinder customer experience and digital transformation — and it is now costing businesses millions of dollars per year.”
“Companies need to be able to easily integrate a growing number of apps and data sources to automate their business, create seamless digital experiences, and drive growth.”
Based on a survey of 100 Chief Information Officers and IT decision makers in Australia, the 2022 Connectivity Benchmark Report highlights the challenges and opportunities for firms as they look to unlock their data to create and automate seamless experiences:
Customers expect seamless user experiences
Applications lie at the center of digital transformation and efforts to enhance the user experience. On average, firms are using 974 applications (compared to 884 a year ago).
Yet only 28% of these applications are integrated on average, indicating there is still a big opportunity to improve connected user experiences. MuleSoft’s report indicates that:
- Creating connected user experiences has been difficult: More than half (55%) of firms said they find it difficult to integrate user experiences. This is up from 44% a year ago, showing there is increasing complexity for companies to meet their customers’ digital needs.
Lack of internal knowledge is a hurdle: A lack of internal knowledge (56%) was cited as the biggest challenge to integrating user experiences, ahead of outdated IT infrastructure (55%) and an inability to keep up with changing processes, tools, and systems (53%).
Integrating user experience delivers business benefits: Of the organizations that have integrated user experiences, more than half said it had enhanced visibility into operations (57%) and innovation (57%). Other benefits realized included improved ROI (54%), increased automation adoption (54%), and increased customer engagement (52%).
Integration challenges hinder digital experiences
Data silos remain a significant barrier to creating integrated user experiences, with the number of firms citing silos as a challenge (97%) and increase from a year ago (94%).
- Integration headaches: The biggest challenges to digital transformation are integrating siloed apps and data (44%) and risk management and compliance (43%). 96% of respondents said integration challenges continue to slow digital transformation initiatives.
Too much is being spent on custom integration: In their efforts to integrate apps and data from across the enterprise, firms appear to be focusing more resources in the wrong areas, such as custom integration. As a result, they continue to incur technical debt. On average, organizations spent $3.56m on custom integration labor in the last 12 months
- IT budgets are up, but so is demand: 89% of organizations said IT budgets have increased year-on-year (compared to 78% last year). At the same time, the number of projects IT is asked to deliver increased by 42% on average, a big jump from 33% a year ago.
- Despite the extra budget, IT is finding it difficult to meet the demands of the business. More than half (57%) of projects weren’t delivered on time over the past 12 months.
APIs used to drive digital transformation and revenue
Despite these integration challenges, all the organisations surveyed use APIs. By using APIs to connect data and applications, organizations can digitally transform in a more sustainable manner and accelerate business success. The MuleSoft Survey Report indicates:
A top down integration and API strategy: Most (92%) organizations now have a clear integration and API strategy. Over a third (34%) said leaders now demand that all projects abide by a company-wide API integration strategy, up from just 10% a year ago.
- Reuse is on the rise: Firms are creating and using reusable IT assets and APIs to create new experiences and accelerate projects, rather than building from scratch each time.
On average, 46% of organizations’ internal software assets and components are available for developers to reuse — which is an increase from 42% a year ago. More than half (53%) of organizations said IT is actively reusing these components.
- Empowerment of business users: Enabling non-technical users to harness low-code tools to drive automation and digital transformation can take huge pressure off IT teams.
More than half (57%) of firms have a ‘very mature’ or ‘mature’ strategy to empower these users to integrate apps and data sources powered by APIs (compared to 33% last year).
- APIs drive revenue: 46% of organizations said they have experienced revenue growth as a direct result of leveraging APIs (when compared to 25% a year ago).
“Digital agility is essential to successful transformation, allowing firms to drive innovation at scale, deliver new initiatives faster, and create the experiences that customers want,” said Kurt Anderson, managing director and API transformation leader, Deloitte Consulting LLP.
“A modern strategy that combines integration, API management, and automation is central to achieving digital agility. It enables organizations to easily connect and integrate their data, applications, and devices to create new digital capabilities and drive transformation projects.”
The 2022 Connectivity Benchmark Report is created in collaboration with Deloitte Digital, who together with MuleSoft, can help IT organizations across industries meet the continuously evolving demand to connect data and create transformation opportunities for the business.
For the seventh-annual Connectivity Benchmark Report, MuleSoft, in partnership with Vanson Bourne, surveyed 1,050 IT leaders from global enterprises. The goal was to uncover how much value businesses actually gain from digital transformation, and to understand IT leaders’ most successful strategies for achieving digital transformation goals.
The online survey was conducted between October 2021 and November 2021 across the U.S, the U.K, France, Germany, the Netherlands, Australia, Singapore, Hong Kong, and Japan.
Only suitable candidates participated in the survey and were verified by using a rigorous, multi-level screening process. All respondents work at an enterprise firm with at least 1,000 employees and hold a managerial position or above in an IT department.
Survey respondents stated on average they spent $8,933,673 on IT staff (both on employee salaries and external contractors) over the last 12 months. Cumulatively survey respondents stated on average their IT teams were spending 39.80% of their time designing, building, and testing custom integrations. 2022: $8,933,673 x 39.80% = $3,555,602
To read MuleSoft’s full 2022 Connectivity Benchmark Report, download it here.
About MuleSoft, a Salesforce company
MuleSoft, provider of the world’s #1 trusted integration and API platform, empowers any company to quickly unlock and integrate their apps and data to create seamless experiences, faster. For more information, For more information, please visit: https://www.mulesoft.