- Companies trying to innovate contend with a lack of technical skill and know-how as a top obstacle, according to an Insight Enterprises report released Thursday. Consulting firm Foundry surveyed 400 senior IT leaders in the U.S.
- Budget constraints, technical debt and a cultural disconnect between departments were also cited as key innovation blockers, according to the report.
- Despite gaps in technical and financial resources, decision-makers say the key issues hindering transformation are related to company culture rather than those related to technology.
Enterprises will spend 2023 trying to strike a delicate balance. It's a time for fiscal responsibility, but innovation can't stop.
Amid tighter economic conditions some businesses have resorted to layoffs, cutting more than 100,000 roles according to layoff tracker Layoffs.fyi. But modernization still needs to move forward even as positions get cut.
"Digital transformation is vital for optimizing business operations, advancing initiatives, driving opportunity and combating competitive threats," Stan Lequin, president of solutions at Insight North America, said in a release. "But it is a massive undertaking that challenges the skills and resources of even the largest organizations.”
Transformation creates potential economic upside in addition to more efficient operations and customer experience improvements.
When businesses can define a digital strategy, align tech with that strategy and commit to digital change, it correlates with a 5% higher market valuation, according to analysis released this week by Deloitte. Nearly $1.25 trillion of economywide market capitalization is up for grabs.
Modernization delays also carry a heavy price tag. Southwest Airlines recently assumed costs of more than $725 million due to a significant IT outage that disrupted operations nationwide. The airline announced it plans to accelerate investment in IT upgrades and maintenance.
Enterprise transformation at its core is a people problem — from a staffing standpoint as well as company culture.
To fill the roles companies need in order to accelerate, more workers will need to enter the field in the coming years as older generations of technologists enter retirement.
Confidence is getting in the way of that cycle, IT trade group CompTIA said this week in a recent report. Most jobseekers perceive technology as an inaccessible industry, particularly due to degree and certification requirements.
In response, some businesses and organizations are doing away with degree requirements to encourage greater access to jobs in tech.