Three quarters of organisations predict that their revenue will go down if digital transformation does not happen this year.

This is according to a global survey of 800 CIOs and IT decision-makers conducted by software company MuleSoft for its 2020 Connectivity Benchmark Report.

Digital transformation refers to the use of digital technology to make changes to customer service and how the organisation operates.

Mulesoft found that 92% of organisations surveyed are currently involved in some form of digital transformation initiative, or planning to launch one next year, but 85% faced integration challenges when doing so.

The report found that although many had made efforts to digitally transform, with almost 900 different applications used by the average enterprise, only 28% of those applications are integrated, meaning many businesses are unable to offer a connected experiences for customers.

As a result, three out of four expect revenue to decline if they fail to digitally transform in the next 12 months.

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By GlobalData

Revenue concerns over digital transformation, but investment lacking

The report also highlighted a lack of investment in digital transformation. The top four IT investment priorities for 2020 are security, big data and analytics, multi-cloud strategy and AI/machine learning, but around half of respondents said their IT budgets will increase by less than 10% this year, even though project workloads will increase by 40%, 8% more than last year.

Furthermore, nearly 70% of IT’s time is spent running the business, meaning there is less time to focus on innovation and development, making it hard for digital transformation to occur.

As a result, 64% of IT decision makers find it hard to introduce new technologies because of their existing IT infrastructures.

“CIOs are uniquely positioned to lead their organization’s digital transformation. IT leaders across all industries must be focused on creating a new operating model that accelerates the speed of delivery, increases organizational agility and delivers innovation at scale,” said Simon Parmett, CEO, MuleSoft.

“With an API-led approach, CIOs can change the clock speed of their business and emerge as the steward of a composable enterprise to democratise access to existing assets and new capabilities.”

Read more: Six digital transformation tips to avoid a “digital veneer”