The rapid speed of technology innovation means enterprise digital transformation efforts must keep pace with emerging technology trends, which can act as both disruptive threats and competitive opportunities, according to Altimeter's annual State of Digital Transformation report, released Thursday.
The report surveyed 554 professionals from enterprise organizations across North America, Europe, and China. Digital transformation budgets rose dramatically over the past year, Altimeter found: Some 18% of companies reported digital transformation budgets ranging from $1 million to $5 million, while 17% said their budgets are between $5 million and $15 million.
SEE: IT leader's guide to achieving digital transformation (Tech Pro Research)
While 16% of companies reported budgets between $15 million and $30 million, this figure represents a 210% increase over the year before, according to the report. Budgets between $30 million and $50 million increased 234%, representing 13% of the companies surveyed. The percentage of companies reporting budgets of $50 million or more jumped from 2% in 2017 to 15% in 2018, marking a rise of 640%.
Investments in emerging technologies are likely a key driver of these substantial budget increases, the report noted. The technologies that companies plan to invest in in 2019 go far beyond cloud and mobile, it found, and require a cross-collaborative team that needs IT to evaluate the opportunities they present and what they require to be deployed.
Enterprise professionals named the following their top priorities for technology investments in 2019, according to the report:
- Cloud (37%)
- Cybersecurity (35%)
- Artificial intelligence (AI) (34%)
- Big data (28%)
- Internet of Things (IoT) (26%)
- Real-time analytics and reporting (25%)
- Mobile solutions (23%)
- eCommerce platforms (21%)
- Social media (19%)
- Cross-functional collaboration platforms (17%)
Further down on the list were machine learning (17%), blockchain (14%), DevOps (14%), and 5G (11%). At the very bottom were drones (5%) and edge computing (4%), demonstrating that the enterprise is likely not yet ready for these emerging technologies.
The big takeaways for tech leaders:
- Digital transformation budgets are rising rapidly in enterprises. — Altimeter, 2019
- Enterprise professionals named the cloud, cybersecurity, and AI as their top technology investment priorities for 2019. — Altimeter, 2019
- Digital transformation: A cheat sheet (TechRepublic)
- Digital transformation: An IT pro's guide (TechRepublic download)
- Digital transformation: A guide for CXOs (Tech Pro Research)
- What is digital transformation? Everything you need to know about how technology is reshaping business (ZDNet)
- 5 best standing desk converters for 2018 (CNET)
- Best to-do list apps for managing tasks on any platform (Download.com)
- Digital transformation: More must-read coverage (TechRepublic on Flipboard)
Alison DeNisco Rayome has nothing to disclose. She does not hold investments in the technology companies she covers.
Alison DeNisco Rayome is a Senior Editor for TechRepublic. She covers CXO, cybersecurity, and the convergence of tech and the workplace.