Poor integration is currently the ‘Achilles heel’ for 59% of respondents’ organizations
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The Connected Business
Improving integration and creating
connectivity in 2018
Whitepaper
2 | Dell Boomi: the connected business
Contents
Introduction and methodology
3
Methodology
3
Key stats
4
Integration the crucial process that many take for granted
5
You only notice integration when it lets you down and for many, it
does
6
What now? Coming up with a solution: The Connected Business
8
Dell Boomi: a unified platform for the connected business
9
Conclusion
11
3 | Dell Boomi: the connected business
We are living in an age of unprecedented digital
and technological advancement, with the pace of
change across all levels of society continuing to
increase. This means adopting, and adapting, to
new forms of disruptive technology all of the time
at home, and at work. However, for many,
adopting the latest technology trend can be the
easy part, it's actually integrating it with all of their
existing technology that can be the real challenge.
Nowhere is this more prevalent than in business.
New disruptive technologies are being constantly
introduced to the workplace, with organizations in
all sectors and industries fighting to keep up and
remain competitive. The fact of the matter is: we
now live in a connected digital world, ultimately it
takes a connected business to succeed.
We now live in a connected digital world,
ultimately it takes a connected business
to succeed
But the workplace in 2018 is not designed to be
connected. It is now unusual for all of an
organization's employees to work together under
one roof, and a disconnected workforce will only
add
to
the connection challenges
facing
businesses. Add to that the growth of social, mobile
technology, and IoT, not to mention the avalanche
of function and task specific applications now
available to businesses, and it's no wonder the
distance between two employees at the same
company has never seemed larger.
However, this is an evolution, not a revolution. A
lot of businesses are proving more than able to
move with the times and adopt new technology.
But for many, this adoption is disjointed, disparate,
and ultimately disconnected. These disparate
applications, data sources, and business functions
need to connect, and work together, as a failure to
do so could prove terminal while the pace of
technological change continues to accelerate.
Methodology
For this research, 900 IT professionals involved in
either building, overseeing, or making decisions
surrounding cloud based applications in their
organization were interviewed. 174 respondents
are identified as the CIO of their organization.
Respondents came from 13 different countries,
split into seven key markets: the US, the UK,
Germany, the Nordic region, Singapore, South East
Asia, and Australia and New Zealand.
A global research
Country
Number of interviews
US
400
UK
200
Germany
50
Nordics*
50
Singapore
50
South East Asia**
50
Australia and New Zealand
100
*includes interviews in Sweden, Norway, and Denmark
**includes interviews in Indonesia, Philippines, and Malaysia
Respondents' organizations had to have at least
500 employees globally, and operated in one of six
key industries:
financial services
manufacturing
healthcare and life sciences
retail
energy and utilities
higher education
Key definition:
iPaaS integration Platform-as-a-Service.
This is a suite of cloud services designed to
connect software applications that are
deployed in different environments, either on
premise or cloud-based
Introduction and methodology
4 | Dell Boomi: the connected business
Poor integration is currently
the 'Achilles heel' for 59% of
respondents' organizations
Just over half (52%) believe that
it is holding back their
organization, while 64% have
missed opportunities in the past
year because their integration
processes were lacking
However, only 53% are currently
using an integration solution,
with 44% of those (23% of the
total base) using an iPaaS
solution
Nearly all (99%)
respondents recognize the
benefits to their organization
from becoming more
connected as a business
86% expect that becoming
more connected as a
business will lead to an
increase in revenue
89% have experienced
drawbacks as a result of this
poor integration
Nearly eight in ten (79%) feel
that striving to become more
connected should be their
number one priority
Among those using an iPaaS solution
most respondents agree that it is
making their organization smarter
(75%), faster (73%), and ultimately
better (57%)
Unsurprisingly, connectivity
within businesses is set to
continue rising over the next
three years
This increase could be as
high as 10% annually, or
$491 million in real terms
Key stats
5 | Dell Boomi: the connected business
For half (50%) of respondents surveyed, the
process of deploying new cloud-based applications
is never ending quite simply, it is something that
their organization is doing all of the time. With so
many having multiple apps
in continuous
development, any struggles, challenges, or
barriers are going to be keenly felt, so the fact that
nearly all (96%) respondents report that their
organization is struggling with the ongoing process
of app deployment is of note. In the countries such
as Singapore and the US where continuous app
deployment is more common, these struggles
could be having more of an impact.
Percentage of organizations constantly
deploying new cloud-based applications
Figure 1: Analysis showing the percentage of respondents
whose organization is constantly working on deploying multiple
new cloud-based applications for business purposes. Asked to
all respondents, split by respondent country (900)
And these current struggles may only be a portent
of what is to come. Nearly six in ten (59%)
respondents expect that their organization will be
integrating more applications for more functions in
five years' time, and nearly half (49%) expect that
the integration process will be occurring at a faster
rate by that time as well. If organizations are
struggling now, there is a good chance that this will
only increase.
98% of CIO respondents see
successful integration as important to
their organization's efforts to remain
competitive over the next five years
This future growth in the importance of integration
and connectivity is being recognized by the most
senior IT professionals surveyed the CIO
respondents. Nearly all
(98%) of
these
respondents identify successful integration as
important to their organization's ability to remain
competitive over the next five years. Over half
(53%) would go even further successful
integration is absolutely crucial.
Changing levels of organizational
connectivity
Figure 2: Analysis showing the average amount of respondents'
organizations as a whole that is or will be fully connected, in the
past, currently, and in the future. Asked to all respondents
(900)
To put a figure on the scale of the problem,
respondents estimate that approximately 59% of
their organization is currently fully connected. In
three years' time, this is expected to be 76% of
their organization. Poor integration or business
connectivity can no longer be ignored if a business
wants to maintain its position in the marketplace.
50%
62%
60%
48%
44%
41%
38%
12%
Total
Singapore
US
Australia and New Zealand
Nordics
UK
Germany
South East Asia
37.44%
49.65%
58.78%
67.20%
75.59%
3 years' ago
12 months' ago
Now
In 12 months' time
In 3 years' time
Integration the crucial process that many
take for granted
6 | Dell Boomi: the connected business
In today's world many things are taken for
granted; your alarm clock will go off, your shower
will be hot, and the trains will be running (almost)
on time. These things are all a part of many
peoples' daily routine, and are usually given little
thought. Except when something doesn't work.
The same can be said for integration: but so many
organizations and their employees are putting up
with failing integration because they don't know
any different. How many hours are lost in
organizations around the world when employees
have to manually download or upload files from one
app to another, or manually duplicate and store
data across multiple silos? It can be easy to
imagine how this unnecessary, extra work can hold
people back at work let alone their organization as
a whole and for just over half (52%) of all
respondents, poor integration is holding their
organization back. Nearly two thirds (64%) admit
that it has caused their organization to miss
opportunities in the past 12 months alone.
Missing opportunities due to poor integration
Figure 3: Analysis showing the percentage of respondents who
feel that their organization missed opportunities in the past 12
months as a result of poor integration. Asked to all respondents,
split by respondent country (900)
Equally damning is that, while not necessarily
holding them back, the overwhelming majority
(89%) have experienced drawbacks because their
integration was not quite up to the task. Poor
workflow efficiency
(36%), delay
in
the
deployment of new products (35%), or unreliable
new applications (33%) all being experienced by a
third or more.
There is a clear price to pay for poor integration
lost opportunities, lost efficiency, and lost time. For
over four in ten (41%), ultimately it is costing them
money in lost efficiency.
Drawbacks of poor integration
Figure 4: "What drawbacks has your organization experienced
as a result of poor integration?" asked to all respondents (900)
With better oversight into other areas of the
business, and insight into the strategic mindset of
the board and c-suite, CIO respondents are best
placed to recognize the costs of poor integration.
Nearly six in ten (58%) of these respondents feel
that poor integration is the 'Achilles heel' for their
organization.
Every organization has an 'Achilles heel', it is
almost inevitable given the pace of technological
change today leading to organizations having to
constantly adapt to keep up. But it appears that for
many, the very process of adapting to change, and
integrating new technology is their main challenge.
However it seems as though organizations already
know where to look for an answer eight in ten
64%
74%
67%
65%
59%
58%
56%
50%
Total
South East Asia
US
UK
Australia and New Zealand
Singapore
Nordics
Germany
41%
36%
35%
33%
30%
29%
27%
25%
22%
16%
11%
It is costing us money in lost
efficiency
Poor workflow efficiency
Deployment of new products has
been delayed
New applications are not as
reliable
Lack of departmental
collaboration
New applications are not as
effective
Some company data has become
siloed
Application updates/upgrades
create broken processes
Poor API management
Application updates/upgrades
negatively impact data integrity
My organization has not
experienced any drawbacks
You only notice integration when it lets you
down and for many, it does
7 | Dell Boomi: the connected business
(80%) say that the right integration solution would
greatly
improve the performance of
their
organization. But can they find the right solution?
8 | Dell Boomi: the connected business
With respondents identifying poor integration and
business connectivity as a serious threat to the
future existence of their organization as a
competitive entity, solving the problem of poor
integration and connectivity should be a top
priority over the coming year.
Using an integration solution sector
differences
Figure 5: Analysis showing the percentage of respondents
whose organization is currently using an integration solution,
and those whose organization is planning to implement one
within the next 12 months. Asked to all respondents, split by
organization sector (900)
To this end, over half (53%) of all respondents
report that their organization uses an integration
solution, but many are having to use more than
one to meet their integration needs. In fact,
organizations are using three different solutions
each, on average. And even then, a significant
minority (31-44%) find that there are capabilities
that they want from their solution, that are not
being met to the desired extent.
Being partially successful at something can bring
benefits, but for something like the integration of
applications, data sources, and business functions,
will being adequate really help your organization?
Approaching half (44%) of those organizations
using an integration solution are using an iPaaS
solution which amounts to just under a quarter
(23%) of the entire respondent base. And the
majority
of
CIOs
surveyed
from
these
organizations using iPaaS agree that it is making
their organization smarter (86%), or faster (75%).
For over six in ten (63%), iPaaS is
making their organization both smarter
and faster at the same time
This brings us to the idea, or the concept of, the
connected business. As we have seen, becoming
more connected as a business is something that
many expect to happen, either through natural
evolution (such as the increase in mobile and IoT
technologies), or through a concerted effort by
organizations.
Respondents
recognize
the
enormous benefits of becoming more connected as
a business nearly all (99%) see a benefit to their
organization, and on average, respondents see
four different benefits each.
53%
58%
56%
55%
52%
51%
36%
25%
18%
21%
27%
32%
25%
33%
Total
Manufacturing
Financial services
Healthcare and life sciences
Energy and utilities
Retail
Higher education
Yes
Planning to adopt one in the next 12 months
What now? Coming up with a solution: The
Connected Business
23% of the
total base are
using iPaaS
9 | Dell Boomi: the connected business
Benefits to improving integration and
becoming a more connected business
Figure 6: "What benefits do you feel that your organization
would enjoy if it could improve its integration and become a
more connected business?" asked to all respondents (900)
Two of the most widely cited benefits include
improving productivity (67%) and more efficient
workflow processes (53%), both keenly needed
remedies for the loss in time and efficiency being
experienced due to poor integration. But perhaps
most importantly, nearly half (47%) would expect
their organization to experience an increase in
profitability as a result of becoming more
connected as a business.
Nearly half (47%) would expect their
organization to be more profitable were
they to improve integration and become a
more connected business
This increase in profitability could be being driven
by a boost in annual revenue most respondents
(86%) expect this upon becoming more connected.
This increase won't be insignificant either, on
average respondents would expect a 10% revenue
boost, or $491 million per year in real terms among
respondents' organizations.
Predicted revenue growth ($m) as a result of
being more connected
Figure 7: Analysis showing the average potential increase in
revenue from becoming a more connected business over the
course of 12 months. Asked to all respondents, split by
respondent country and displayed in USD (millions) (900)
With such clear and tangible benefits, shouldn't
organizations be actively encouraging the evolution
to a connected business, rather than leaving the
process to chance? Especially so if this is to become
such a necessity for success in the near future.
But perhaps one of
the challenges
that
organization's need to overcome first and foremost
is an attitudinal one. Many organizations can be
accused of viewing integration and connectivity as
separate challenges as two individual problems
perhaps. By aiming to solve connectivity issues
through better tech integration, organizations go
from merely trying to join up two disconnected
applications, platforms or systems, to complete
organization-wide connectivity and the concept
of The Connected Business is borne.
Dell Boomi: a unified platform
for the connected business
Dell Boomi (Boomi), exists to help enterprises
connect everything and engage everywhere across
any channel, device or platform.
67%
61%
53%
47%
47%
46%
41%
35%
26%
Improved productivity
Improved data accessibility
More efficient workflow processes
Better organizational
communication
Increased profitability
Information will be easier to share
Faster and more accurate decision
making
More robust and sustainable
business growth
We can provide a more customer
centric experience/service
$491
$810
$545
$376
$323
$303
$201
$40
Total
UK
US
Singapore
Nordics
Germany
Australia and New Zealand
South East Asia
10 | Dell Boomi: the connected business
The key to your company's future is managing the
entire end-to-end workflow -- the people, process,
and technology. Boomi delivers all of this in a
unified platform, which you can build and consume
as you need. Every element of the platform is
designed for ease of use, leveraging all of the
advantages of the cloud.
Boomi solves the hard technical challenges, so you
can drive your business forward. The Boomi
platform connects your past, present and future
technology investments and drives competitive
advantage.
With
Boomi,
your
organization's
digital
transformation is within reach.
11 | Dell Boomi: the connected business
Regardless of organization size or sector, maturity
or market, becoming a connected business should
be the target over the next couple of years. Some
of the more senior and influential IT professionals
interviewed agree that it is critical to remaining
competitive. And improving the process of
integrating new applications, data sources, and
business functions is key to that. Using an
integration solution can certainly help, but it must
be the right solution, otherwise, like the individuals
surveyed here, your organization may end up using
a disparate stack of competing platforms that can't
quite do everything that you'd like them to.
Some organizations are ahead, with an integration
solution already implemented, but some are far
behind, not even using any form of integration
solution at all. It's these organizations that need to
be most worried about their ongoing ability to be
competitive. Especially as the pace of digital
change is unlikely to slow over the next five years,
with respondents in agreement that issues now are
only going to grow over that same timeframe.
Still time to correct any failings and
organizations would do well to listen to
their CIO
However, given that integrating applications, data
sources, and business functions is still challenging
most organizations, there is still time for those that
are behind to address the problem and get back on
track. These organizations need to speak to their
CIO, who throughout this research demonstrated
an advanced understanding and appreciation of the
value of successful integration.
Conclusion
About Dell Boomi:
Dell Boomi (Boomi), an independent business unit of Dell, is the leading provider of cloud integration and
workflow automation software to build The Connected Business. Dell Boomi (Boomi), an independent
business unit of Dell, is the leading provider of cloud integration and workflow automation software to build
The Connected Business. Boomi helps more than 6,500 organizations accelerate business agility by
connecting data and applications to run faster and smarter. Visit http://www.boomi.com for more
information.
About Vanson Bourne:
Vanson Bourne is an independent specialist in market research for the technology sector. Our reputation
for robust and credible research-based analysis, is founded upon rigorous research principles and our ability
to seek the opinions of senior decision makers across technical and business functions, in all business sectors
and all major markets. For more information, visit www.vansonbourne.com