Enterprises losing more than $1M a week through inefficient technology use, WalkMe report reveals
- Investment in digital adoption technology has risen 63% year-over-year.
- Enterprises spend 44 working days a year compensating for technology issues.
- Organizations that fully embrace digital adoption best practices save on average $4.9M a month.
- Enterprises that prioritize digital adoption have 14% less spend on digital transformation projects that fail to meet ROI, 18% higher ROI from digital transformation projects, and 30% higher application utilization.
- None.
The surge in investment in digital adoption technology, as reported by WalkMe Ltd., is a significant indicator of the growing importance of efficient technology utilization within enterprises. The reported 63% year-over-year increase is a reflection of the corporate world's response to the productivity losses attributed to inadequate digital tools and practices. This investment trend is likely to influence the decisions of stakeholders in the technology sector, as it signals a robust demand for digital adoption solutions.
From a market analysis standpoint, the emphasis on digital adoption can be expected to drive competition among providers of such solutions, potentially leading to innovative product development and strategic partnerships. The report's indication that enterprises not embracing digital adoption may find themselves in an unsustainable position by 2028 suggests a long-term market shift towards integrated, user-friendly technologies. This shift could have a ripple effect on related sectors, including software development, IT support and change management services.
The financial implications of the report by WalkMe Ltd. are substantial for investors and enterprises alike. The average cost of $1.14 million per week in lost productivity due to poor digital adoption practices directly impacts the bottom line of organizations. Conversely, the substantial savings of $4.9 million per month for enterprises fully embracing digital adoption best practices highlight the potential for significant cost reductions and efficiency gains.
These figures underscore the importance of strategic investments in digital adoption and the potential for a high return on investment (ROI) for companies that effectively implement these technologies. The underperformance of medium enterprises in achieving ROI from digital investments, with a reported $13 million in wasted spend, could be a critical consideration for investors evaluating the growth potential and operational efficiency of these companies.
The discrepancy between the number of applications believed to be in use by enterprise leaders and the actual figures presents a compelling case for better IT estate management and technology integration. The reported underestimation of application use by a factor of ten highlights the challenges and opportunities in streamlining technology stacks within organizations. The potential for a 30% higher application utilization rate among companies that adopt digital best practices illustrates the benefits of effective technology integration and the role it plays in achieving HyperProductivity.
As artificial intelligence becomes more pervasive, the integration of AI-driven solutions into business workflows will be critical. This integration requires specialized knowledge and expertise to ensure seamless operation and to maximize the productivity benefits that these technologies promise. The focus on improved user experiences and the associated saving of 21.5 working days per year per employee further emphasizes the value of integrating digital adoption strategies into the core business processes.
Investment in digital adoption technology rises
SAN FRANCISCO, Feb. 07, 2024 (GLOBE NEWSWIRE) -- WalkMe Ltd. (NASDAQ: WKME), a leading provider of digital adoption solutions, today released its flagship report, The State of Digital Adoption 2024 (SoDA 2024). The report shows that, while digital adoption is a rising priority for enterprises, a lack of best practice is still costing many organizations dearly1. The research, based on a survey of more than 4,000 executive and employee respondents, found that an inability to correctly and fully utilize technology costs enterprises on average
Prioritizing digital adoption has shown proven results for enterprises.
This success explains why
"SoDA 2024 is our most extensive report yet, highlighting the critical juncture at which we stand with global IT spend anticipated to reach
Highlights from the research:
- Employees spend as many as 353 hours, or 44 working days, a year compensating for technology issues such as troubleshooting software problems, waiting for support, or struggling with inadequate instructions.
- Enterprise leaders believe their organization uses 21 applications, but on average, large organizations use 211 applications while smaller companies use 69.
68% of organizations have a team of employees responsible for digital adoption across all departments — compared to48% in 2021.- Organizations that have embraced all digital adoption best practices save on average
$4.9M a month compared to those that only follow some. In addition, these enterprises see:14% less spend on digital transformation projects that fail to meet ROI.18% higher ROI from digital transformation projects.30% higher application utilization.- 21.5 working days a year of employees’ time saved through improved user experiences.
“As more organizations realize the need for effective change management and decide to fully embrace digital adoption, they will begin to experience HyperProductivity. In this aspirational state, everyone can use any application with ease, and companies will have automated as many processes as possible and integrated technologies into one cohesive, streamlined workflow,” continued Bloch. “By scaling and replicating digital adoption successes organization-wide, enterprises can give employees the tools, technology, and support they need to operate exponentially faster and more effectively than before. This will be crucial in navigating productivity challenges in an uncertain economic climate and ensuring organizations realize the full ROI of their projects.”
Download The State of Digital Adoption 2024 complete report here.
About WalkMe
WalkMe (WKME) pioneered the world’s leading Digital Adoption Platform (DAP) to drive enterprise productivity and reduce risk by ensuring consistent, responsible, and efficient adoption of software and the workflows it powers. Our AI-driven platform presides over an organization’s tech stack, identifies where people experience friction, and delivers the personalized guidance and automation needed to get the job done, right in the flow of work. Customers like IBM, Nestle, ThermoFisher Scientific, and the U.S. Dept. of Defense trust WalkMe to create people-centric experiences that maximize software ROI and deliver the visibility required to effectively navigate the constant change brought on by technology.
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Media Contact:
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1 Surveys of 1,700 senior business leaders and 2,051 office and hybrid workers at enterprises in North America, Japan, APAC, UK & Ireland, France, DACH, Benelux and the Nordics.
FAQ
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