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article imagePoor IT integration costs each company half a million per year

By Tim Sandle     Jan 22, 2019 in Business
Analysts Cleo have released survey results from 100 IT decision makers, which found that B2B, application and cloud integration challenges amount to a $500,000 loss to enterprises each year.
Another important finding from the report is that poor integrations and lack of resources contribute to hundreds of lost orders each year, leading to annual revenue losses in the range of $250,000-500,000 for 57 percent of those firms surveyed. The report from Cleo is headed "2019 State of Ecosystem and Application Integration Report."
As well as spelling out the cost implications, the survey also aimed to identify core business problems behind integration challenges. Among the technological challenges is the issue of experience. The survey found that while 95 percent of the surveyed companies strive to enable their business ecosystems, 38 percent reportedly lacked confidence in their capacity to scale to support the integration initiatives foundational to doing so.
A secondary factor was with complexity. In relation to this, 63 percent of Information Technology decision-makers stated that new business onboarding is too complex and takes too long. A third factor was connected to resources. With this, 29 percent of companies reported they lacked the skilled resources to build and manage integrations between systems, applications and partner ecosystems.
A fourth factor was connected to older systems, as 22 percent of respondents indicated that legacy technologies cause significant delays in generating new revenue. Following this, 81 percent of companies in this position said they believe replacing legacy systems will support emerging business initiatives.
These factors led Cleo CMO Tushar Patel to say: "The overwhelming consensus from these IT decision-makers is that new business demands – many of them brought by forces outside the company – are putting additional pressure on organizations and technologies to deliver better ecosystem integration solutions."
He adds: "And when they can’t, it’s costing the business money. But for many of these organizations, it’s not an immediately solvable problem because they don’t have the strategy, the tools, the budget, or the resources to execute on these revenue-impacted initiatives."
In terms of remediation activities to address these obstacles, the vast majority of respondents stated that modernization is key to consolidating disparate technologies, automating data transaction processes and gaining visibility into their critical data flows. These reasons account for why over half of the enterprises indicated they plan to modernize their integration and IT infrastructure in 2019.
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