Integration Challenges Slow Digital
February 17, 2020
global survey of 800 CIOs and IT decision makers (ITDMs) in
organizations with at least 1,000 employees revealed that digital
transformation has widely become a strategic imperative for businesses
with nearly all respondents (92%) currently undertaking initiatives or
planning to in the next year. However, significant integration
challenges exist for 85% of organizations Ė stalling digital
transformation and negatively impacting revenue, speed to market and
Businesses are under increasing pressure to digitally transform, and for
good reason: three out of four expect a decline in revenue if they fail
to do so in the next year. Theyíre also struggling to overcome a common
obstacle: of the almost 900 different applications used by the average
enterprise, only 28% of those applications are integrated - preventing a
single view of the customer. As a result more than half of businesses
are unable to provide connected experiences for customers.
ďCIOs are uniquely positioned to lead their organizationís digital
transformation. IT leaders across all industries must be focused on
creating a new operating model that accelerates the speed of delivery,
increases organizational agility and delivers innovation at scale,Ē said
Simon Parmett, CEO, MuleSoft. ďWith an API-led approach, CIOs can change
the clock speed of their business and emerge as the steward of a
composable enterprise to democratize access to existing assets and new
The 2020 Connectivity Benchmark Report highlights new opportunities
and challenges for businesses as they digitally transform:
IT must innovate faster, and with
Traditional IT operating models are broken and organizations are being
forced to find new ways of accelerating project delivery and reusing
integrations. At least half of respondents say their IT budgets will
increase by less than 10% this year despite their project workloads
skyrocketing by 40% (up from 32% last year). Yet 82% of businesses are
now holding their IT teams accountable for delivering connected customer
When IT canít keep up with business demands, projects slip: More than
half (59%) of organizations werenít able to deliver on all of their
projects last year, creating a backlog for 2020.
IT faces the constant balancing
act of keeping the lights on and innovating: With current IT operating
models, nearly 70% of ITís time is spent running the business, instead
of focusing on innovation and development.
Organizations struggle to maintain
the pace of our digital world: Nearly two-thirds (64%) of ITDMs find it
difficult to introduce new technologies because of their IT
New technology investments only
increase the need for integration: The top four IT investment priorities
for 2020 are security (53%), big data and analytics (48%), multi-cloud
strategy (41%), and AI/machine learning (41%) - all of which will
require deep integration with existing systems.
Businesses are failing to capture
the full value of APIs without a company-wide strategy
Organizations are increasingly leveraging APIs as building blocks to
streamline integration while supporting reuse and self-service across
the enterprise. In fact 80% of businesses currently use public or
private APIs. However, very few have developed a strategic approach to
enable API usage across the business.
Company-wide API strategies are necessary to drive true value and reuse:
Only 12% of organizations are mandated by leadership to abide by a
company-wide API integration strategy for all projects. More than half
(54%) implement APIs on a project-by-project basis or use a strategy
thatís siloed within certain parts of the business.
Businesses donít have an easy way
to share APIs: Less than half (42%) of internal software assets and
components (e.g., code, APIs, best practice templates) are available for
developers to reuse. Most organizations (80%) also donít have a
completely effective way to share APIs or integrations.
New business users are emerging,
amplifying the need for reuse: Outside of IT, the top three business
roles with integration needs include business analysts (40%), data
scientists (38%) and customer support (38%).
Citizen integrators lack critical
internal resources: 70% of ITDMs say they have a good strategy in place
to enable non-technical business users to easily integrate apps and data
sources with APIs. Despite this high level of confidence, 67% donít have
a team thatís dedicated to driving the sharing and reuse of APIs.
API reuse is directly linked to
speed of innovation, operational efficiency and revenue
By establishing API strategies that promote self-service and reuse,
businesses put themselves in a much better position to innovate at
speed, increase productivity and open up new revenue streams. More than
half (52%) of organizations say that IT has generated the most business
value by building reusable integrations that save time and money on
future projects. Despite this success, only 42% of ITDMs are leveraging
APIs to increase the efficiency of their application development
Most organizations are making integration harder on themselves by not
designing APIs for reuse: Among organizations that leverage APIs, 52%
use them as part of the development process for new projects and 52% use
them to build integrations. However, less than half (46%) say their APIs
are reusable, highlighting outsize opportunity for IT to be more
effective in the delivery process.
arenít activating API ecosystems: Of those leveraging APIs, only 26% of
organizations are driving innovation with partner and external developer
ecosystems by exposing them to third parties.
When designed with intent, APIs
drive business outcomes: Organizations using APIs benefit from
operational improvements such as increased productivity (54%), increased
innovation (47%) and greater cross-team agility for self-serve IT (46%).
APIs are the new revenue stream:
On average, nearly a third (31%) of businessesí revenue is being
generated by APIs or by API-related implementations.