Majority of digital transformation projects seeing an increase in funding.
If your business is to succeed with its digital transformation project then funding needs to come from outside IT.
That’s according to new research from Splunk, which found that the organisations that are most mature when it comes to digital-first strategies are more likely to show that funding comes from departments such as product development, customer service, sales and marketing.
Most of the respondents (69%) said that IT funding is the main source, but product development (34%), customer service (30%), sales (30%), and marketing (27%) are also providing funding.
The survey of 400 senior IT executives across the US, UK, and Germany, also found that funding for digital transformation initiatives is on the rise, with 67% expecting budgets to rise, with only 8% expecting a decrease.
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It was also found that only 36% cite security as funding digital transformation, however, security is considered a critical driver by 77% for improving customer acquisition and retention, reducing costs through automation and improved efficiency 72%.
“Having a digital transformation strategy and executing on it no longer means you have an edge. If the majority of organizations are ‘moving with the masses’ or believe they are ‘ahead of the curve’ then no one is really standing out,” said Doug Merritt, president and CEO, Splunk.
“Organizations that rely on machine data to make better decisions gain a strategic advantage over their competitors. It is not surprising that those organizations with the most success are the ones collaborating – and funding – cross-functionally. Data is a key driver in enabling that collaboration and can help companies drive real-time business insights to move faster to differentiate, innovate, raise revenues, reduce costs and mitigate risks.”
Another factor that is critically important to success is insight into machine data. Respondents were asked about the ability to derive real-time insights and business value from machine data to achieve their digital business goals, 68% said this is a critical or very important priority.