Splunk Inc., the provider of a software platform for real-time operational intelligence, today announced the results of new research that shows digital transformation initiatives are more successful when they have buy-in from across the business.
Findings from a survey of 400 senior IT executives across the US, UK and Germany show that adoption of digital transformation initiatives is widespread. When asked where they are in the journey, 55% believed they are moving with the masses, while 36% felt they are ahead of the curve.
Respondents on average reported 29% of their IT budget is dedicated to digital transformation projects, but the research reveals these initiatives are more likely to succeed when funded from outside IT. The organisations that are most mature when it comes to digital-first strategies were more likely to indicate that funding comes from departments such as product development, customer service, sales and marketing.
>See also: The digital transformation of things
“Having a digital transformation strategy and executing on it no longer means you have an edge. If the majority of organisations are ‘moving with the masses’ or believe they are ‘ahead of the curve’ then no one is really standing out,” said Doug Merritt, president and CEO, Splunk.
“Organisations that rely on machine data to make better decisions gain a strategic advantage over their competitors. It is not surprising that those organisations with the most success are the ones collaborating – and funding – cross-functionally. Data is a key driver in enabling that collaboration and can help companies drive real-time business insights to move faster to differentiate, innovate, raise revenues, reduce costs and mitigate risks.”
Overall, funding for digital transformation initiatives was on the rise: 67% of respondents expect digital transformation budgets to increase, while only 8% expect a decrease. At the same time, IT funding was the only one of many sources for these initiatives, with 69% of respondents citing this as a key funding source. Outside the IT department, product development is funding initiatives for a third (34%) of respondents, followed by customer service (30%), sales (30%) and marketing (27%).
>See also: Digital transformation: an analysis of the potential and the challenges
Only 36% said security is funding digital transformation, although this is the top driver for these programs: 77% of respondents said security was a critical or very important driver, with the top three rounded out by improving customer acquisition and retention (72%) and reducing costs through automation and improved efficiency (72%).
When asked about the ability to derive real-time insights and business value from machine data to achieve their digital business goals, more than two-thirds (68%) of respondents say this is a critical or very important priority. Insight into machine data is key to success.
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