Almost a third of businesses lose up to $1 million a year to integration issues
A new study reveals 30 percent of businesses estimate they lose between $100,000 and $1 million per year as a result of integration-related issues such as data errors, technology impediments, or SLA violations.
The report from cloud platform Cleo shows 10 percent claim to lose $1 million or more on an annual basis from such causes. As for productivity costs, nearly half (46 percent) say it takes them a month or longer to onboard a new trading partner, causing slowdowns in their business.
In addition 47 percent of respondents say their company loses upwards of 50 orders each year specifically due to integration issues, with 17 percent losing up to 500 orders or more on an annual basis.
"Companies' patience for struggling with both the complexity and negative business impact of legacy integration solutions is wearing thin," says Tushar Patel, chief marketing officer at Cleo. "As a result, a new sense of urgency has taken hold and enterprises are making concrete plans to finally tackle their cloud integration challenges more aggressively in 2020."
In response to these trends companies are planning to change their approach. 64 percent say they will upgrade their integration solutions in the next 12 months, while 57 percent plan to migrate integration capabilities to the cloud in the next year.
Automating integration is either important or very important for 82 percent of respondents, with 60 percent identifying it as the greatest value driver for their business ecosystem. 98 percent indicated they would expect to gain value from an ecosystem integration approach.
"The survey shows that enterprises today have admittedly grown frustrated with just how complex -- and unnecessarily costly -- outdated integration technology is. Out of this frustration a groundswell of optimism is emerging that is driving demand for change in the marketplace," adds Patel. "As a result, today's enterprises are starting to put their ecosystems first and have revealed intentions to strategically increase investments in integration technology platforms that support sustainable, long-term value creation."
The full report is available on the Cleo site and there's an infographic summary of the findings below.