Poor integration costs businesses $500,000 a year
Businesses across all industries face B2B, application, and cloud integration challenges that jeopardize revenue opportunities and threaten growth, and more than half of organizations report that those challenges take a $500,000 toll on the business every year.
A study by cloud integration specialist Cleo reveals that of IT decision makers surveyed, 57 percent say 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 to $500,000.
"The fact that the majority of businesses face revenue losses of at least $250,000 each year is a startling statistic, and it’s a major pain point for the IT decision-makers polled," Cleo CMO Tushar Patel says. "The good news is that most IT teams believe they can positively influence company value if they can find better ways to support end-to-end transactions with their ecosystem, which is precisely what Cleo’s ecosystem integration platform promises to help them do."
There is good news in that most respondents understand the problem. 95 percent of surveyed companies say they strive to enable their business ecosystems, but 38 percent lack confidence in their capacity to scale to support the integration initiatives needed to do so.
63 percent of IT decision-makers surveyed say new business onboarding is too complex and takes too long. 29 percent report lacking the skilled resources to build and manage integrations between systems, applications, and partner ecosystems. Also 22 percent say legacy technologies cause significant delays in generating new revenue, and 81 percent believe replacing legacy systems will support emerging business initiatives.
More than half plan to modernize their integration and IT infrastructure in 2019, so clearly this is seen as key to consolidating technologies.
"It's often easier for companies to rely on homegrown or outdated B2B systems and inward-focused legacy solutions to drive their businesses, but it's ill-advised to push off IT modernization for too long, especially as the app explosion continues to permeate the enterprise," Patel adds. "We've seen tremendous success for companies supporting these emerging requirements with a single ecosystem integration platform as the nexus of their application, cloud, and trading partner interactions."
The full report is available from the Cleo website.