Modus Create, a global digital consulting firm, has released its latest industry research report, “Investing in Digital Transformation & Product Development,” shedding light on how enterprises are prioritizing and resourcing digital initiatives such as new customer-facing applications and data security. The research, conducted in partnership with independent research firm Ascend2, surveyed 377 product development and executive decision-makers from organizations across the United States and the United Kingdom.
With the rapid pace of new technology innovation, enterprises are increasingly focused on enhancing the customer experience through innovative digital products and improved data experiences. However, the report identifies several challenges hindering these efforts, including the need for more strategy, cybersecurity concerns, and talent acquisition and retention.
This research is a resource for digital executives as they navigate these business challenges to stay competitive while also demonstrating ROI on digital investments. The overwhelming majority (91%) of decision-makers reported that the pressure to prove the value of new customer-facing products and technology is increasing.
Here are more key findings:
Cybersecurity takes centerstage: With the escalating threat landscape, organizations are prioritizing cybersecurity measures before they become the next cyberattack headline. Preventing security breaches is a top challenge for 40% of surveyed enterprises. Notably, 59% plan to increase investments to bolster cybersecurity posture in the coming year, reflecting a significant surge from previous years (up from 32% in last year’s report).
Patrick Sheridan, CEO, Modus Create, says, “There are many reasons to prioritize cybersecurity, including the simplest one: your customers care. Data security is part of the customer experience. We will continue to see enterprises get more sophisticated around security, integrating it into every aspect of their digital initiatives and throughout the product development lifecycle.”
Digital product development is not slowing down, but strategy is a challenge: 44% of respondents said they plan to launch new customer-facing applications or features in the coming year (up from 22% the previous year). A whopping 95% of organizations said they are increasing their budget dedicated to planning, building, and managing customer-facing digital products.
However, the report reveals a gap between product delivery and strategy, highlighting the critical role of a solid digital strategy to scale products. Almost one-third of decision-makers said that lacking a digital strategy is a top challenge to the overall success of their organization, and 79% reported that following through on strategic elements of developing and launching new products is a barrier to success.
“Our research revealed that strategy overall remains a serious barrier to scaling product development and digital transformation efforts,” Sheridan says. “As technology leaders, we must work to bridge the strategy and delivery divide, removing silos between leadership and development teams, using the customer journey as the north star for all of our efforts. Enterprises should integrate strategic thinking with actionable steps and codified learnings to prioritize your agenda.”
Organizations are struggling to find and retain capable digital talent: 43% of decision-makers rank hiring the right talent as a top obstacle to their organization’s overall success. Many organizations rely on capable partners to help, with 83% leveraging consultants for the development, deployment, and management of customer-facing products. When it comes to outsourcing, decision-makers find it most helpful to outsource cloud infrastructure or migration, application security, and application modernization.
As organizations grapple with the supply-demand crisis of capable talent, the importance of enhancing developer experience, nurturing talent, and finding capable partners is increasingly evident.
“If you really want to measure the success of your digital transformation, measure the satisfaction of your knowledge workers,” says Sheridan. “Building a culture of innovation and improving the customer experience stems from a successful developer experience and, by extension, the experience of your product and platform teams.”
Modus Create remains committed to providing insights and solutions to help enterprises navigate the complexities of digital transformation. For more information and to access the full report, visit moduscreate.com/insights/investing-in-digital-transformation-trends-product-development
Methodology
Ascend2 conducted this research using a custom online questionnaire to survey a panel of 377 product development decision-makers representing a range of departments and job roles that include management and above. These individuals represent organizations across the United States and the United Kingdom with 500 employees or more. The survey was fielded during the month of June 2023.
About Modus Create
Modus Create is a digital consulting firm dedicated to helping clients build competitive advantage through digital innovation. We support organizations across their transformation journey with strategic consulting and full lifecycle product development. Our global team of strategists, designers, and technologists has created powerful digital experiences for some of the world’s biggest brands. Learn more at moduscreate.com.
About Ascend2
Companies partner with Ascend2 to create original research from survey conceptualization through report and content creation to media outreach. Ascend2 helps companies fuel marketing content, generate leads, and engage prospects to drive demand through the middle of the funnel. Learn more at ascend2.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240404271944/en/