While organisations spend vast sums of money on keeping up with the fast moving rate of digital innovation, the pursuit of these advances may spell doom for many, especially those using legacy technology.
On average an organisation will spend $5.7 million every year is the constant race to be up to date, but in spite of this, 90% of digital projects have been found to end in failure.
These figures come from a report released by Couchbase, a private software company that has recognised that legacy technology is weighing businesses down.
The report reveals that 84% of the organisations that have experienced failure on projects targeting digital innovation have suffered the fate due to databases that are not up to the task of supporting the new technology.
An area in which outdated databases weaken organisations is the fact that 28 hours on average is required for data to be utilised, completely ruling out the opportunity to benefit from real-time accessibility.
Matt Cain, CEO of Couchbase said, “Our study puts a spotlight on the harsh reality that despite allocating millions of dollars towards digital transformation projects, most companies are only seeing marginal returns and realizing this trajectory won’t enable them to compete effectively in the future… With 87 percent of IT leaders concerned that their revenue will drop if they don’t significantly improve their customers’ experiences, it’s critical that they focus on projects designed to increase customer engagement. Key to succeeding here is selecting the right underlying database technology that can leverage dynamic data to its full potential across any platform and deliver the personal, highly responsive experiences that customers are demanding today.”
There are a set of other factors than have contributed to organisations failing to succeed and harness digital innovation, with 86% of respondents believing they lack the necessary agility. Many are aware of their inefficient, legacy databases, as only 19% believe theirs could handle the task, according to the Couchbase report.