Alpha Software Blog

Digital Transformation is Tough, but Worth It

This review of a recent MuleSoft survey shows how challenging digital transformation can be.




How hard is it to digitally transform an enterprise? It’s challenging but worth it for the potential gains versus losses. That’s the message from a recent survey, the MuleSoft Connectivity Benchmark Report 2023”.

digital-transformationWhat is Digital Transformation?

Digital transformation means using various technologies to improve business processes and customer experience while increasing market growth. The technologies typically involved include rapid application development (RAD), Artificial Intelligence (AI), Machine Learning (ML), Cloud Computing, and Internet of Things (IoT) solutions.


What's the Cost of Failed Digital Transformation?

MuleSoft surveyed 1050 IT decision-makers worldwide. MuleSoft noted that organizations needing to complete digital transformation initiatives could lose $9.5 million, compared to 6.8 million in 2022.

With the rising costs of neglecting digital transformation, surely more organizations will be on board. IDC forecasts a $7 trillion direct investment in digital transformation, growing at an 18% CAGR from 2020 to 2023, driven by firms expanding on existing assets to become digitally scaled organizations in the future.

Increased Organizational Digital Transformation

According to MuleSoft’s report, over a third (35%) of organizations already have a transformation program, up from 34% last year. And most enterprises are making steady progress. (69%) of organizations are ahead of their projections, with only 10% behind.

Customer Service and Digital Transformationcustomer service

Customer service is a critical component of digital transformation. Many of us live in a digital age. We shop, browse, watch movies, and engage with one another on social media. Mobile devices also play a significant part in many aspects of our everyday life. It is only logical that we expect to communicate with businesses digitally.

As MuleSoft’s report states, “Customers today are loyal to brands that give them the best experience. Consumers have come to expect digital access to a company — which is why 72% of customer interactions today are digital.”

Another key statistic from the report is “Businesses are working to improve customer engagement and satisfaction. More than a third (36%) say they provide a completely connected user experience across all channels — up from 30% in 2022”.


Organizations and Increased Demand for Automationgrowing-thriving-business

More organizations are using applications than ever. One of the drivers behind this change is that more employees work at home and in the office throughout the week. The growing demand for efficiency also comes into play. “On average, organizations use 1,061 different applications, up from 976 in 2022.”

IT Team's delivery is improving despite increasing business demands. Almost half (48%) report they delivered all IT projects requested last year, compared to 44% in the previous survey. There were also fewer late projects-30% this year compared with 52% last year.

What Obstacles Remain for Digital Transformation?

Despite more firms implementing digital transformation initiatives, there are drawbacks in integrating new software with existing software. Hurdles like “integrating siloed apps and data (36%), lack of skills and experience (36%), risk and compliance(36%), hiring/retaining talent (34%), and legacy infrastructure (34%)” remain obstacles to digital transformation.

Although organizations' usage of apps is increasing, they typically only integrate 29%. If they pay attention to integration, they'll take advantage of cost savings, grow, and work more efficiently. The customer experience will also suffer.

Among the factors holding integration back may be the prohibitively prohibitive cost. The report shows organizations spent $4.7 million on custom integration labor in the past year, up from $3.6 million the previous year. This approach is unsustainable, and using reusable integrations with APIs is more economical. Integration remains a perpetual hindrance for 80% of organizations, and 90% face continual challenges due to data silos, with no change from the previous year.

Why Digital Transformation is Worth the Challenges

Digital transformation is vital for any organization that wants to thrive in the future. With more organizations hitching on the digital transformation train and more using applications, it doesn’t mean there are no barriers. Integration is an expensive but vital component. One of the core priorities to make further progress is to overcome this challenge.

Starting Your Digital Transformation Journey

AlphaSoftware2022TransYou don't need millions of dollars to start your organization's move to a digital business. For example, if you still collect data using paper and clipboards, start by switching from paper forms to digital forms. Start using visual dashboards to analyze your data. And the list goes on.

Alpha Software works with companies across many industries to help them start, continue, or finish their digital transformation initiatives.  We can do small projects, such as digitizing a paper form, or help you completely automate and digitize your business.

Book a meeting with our team. We can work within your timelines and budgets to help you start or continue your digital transformation journey.

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About Author

Amy Groden-Morrison
Amy Groden-Morrison

Amy Groden-Morrison has served more than 15 years in marketing communications leadership roles at companies such as TIBCO Software, RSA Security and Ziff-Davis. Most recently she was responsible for developing marketing programs that helped achieve 30%+ annual growth rate for analytics products at a $1Bil, NASDAQ-listed business integration Software Company. Her past accomplishments include establishing the first co-branded technology program with CNN, launching an events company on the NYSE, rebranding a NASDAQ-listed company amid a crisis, and positioning and marketing a Boston-area startup for successful acquisition. Amy currently serves as a Healthbox Accelerator Program Mentor, Marketing Committee Lead for the MIT Enterprise Forum of Cambridge Launch Smart Clinics, and on the organizing team for Boston TechJam. She holds an MBA from Northeastern University.

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