Digital transformation is fragmented, and that's hurting businesses

It is one thing to be aware of the benefits of Cloud technology – it is a completely different thing to implement it properly.

It is one thing to be aware of the benefits of Cloud technology – it is a completely different thing to implement it properly. According to a new report by Oracle, many European businesses have learned this the hard way. By allowing individual business units to purchase IT solutions, almost two thirds of businesses (60 per cent) get data silos and duplicate purchases. 

Sometimes, they even purchase completely wrong technology. Oracle’s new report, Putting Cultural Transformation at the Heart of Cloud Success, besides highlighting the troubles businesses are facing when buying IT, also says there is also a problem with how IT investments are funded. 

By not aligning the investments with revenue potential and innovative projects, businesses are ‘stifling innovation’. A third of IT decision makers have admitted their IT funding models are slowing innovation down.  

According to Oracle, businesses need to ‘rethink’ how they fund IT investments, and undergo a ‘cultural transformation’, if they want to reap the benefits of new technology. 

“The issues companies face with their cloud resources are less to do with the technology itself and more to do with a lack of synchronization across lines of business,” says Johan Doruiter, Senior Vice President of Systems, Oracle EMEA.  

“Decision-makers in each department are increasingly making cloud purchasing decisions without involving the CIO due to the ease of procurement. However, without one IT point-person to unify their cloud investment strategy companies will continue to struggle with individual departments tugging time and resource in opposing directions.” 

Oracle sees a big problem in the fact that there is no single person with a view across all tech investments. The Chief Information Officer must be an ‘integral player’ in leading digital transformation.