ARE ORGANIZATIONS

REALIZING THEIR
DIGITAL REVOLUTIONS?

2018 CIO Survey Report

 Table of Contents

Executive Summary ................................................................................................. 3

Part 1: Is the digital revolution soaring or stalling? ...................................... 4

Part 2: Organizations’ digital progress ............................................................. 5

Part 3: What is driving digital? ............................................................................. 8

Part 4: The data challenge .................................................................................... 11

Part 5: Consequences ............................................................................................. 18

Part 6: What does success look like? ................................................................ 19

Part 7: Conclusion ..................................................................................................... 25

ARE ORGANIZATIONS REALIZING THEIR
DIGITAL REVOLUTIONS?
A Couchbase research report: Investigating whether data strategies
are designed to encourage innovation and true transformation

Executive summary
As more industries realize the potential of digital transformation, and those organizations that have
developed truly revolutionary experiences open up a clear lead over their competitors, this Couchbase
report investigates enterprises’ reaction to this digital revolution, including: whether the revolution is
succeeding in their industry; the progress organizations have made to date; what factors and parts of
the business are driving digital transformation; how organizations’ use of data is helping or hindering
them in meeting their ambitions; and what the consequences will
be for enterprises that can’t adapt.

Specifically, the report shows that digital disruption is accelerating with: 85 percent of digital decision-
makers say that disruption in their industry has accelerated over the past 12 months, and 37 percent
say it has accelerated “rapidly.” Respondents also still agree on digital innovation’s ultimate aim: to
give customers and end users a truly unique experience. Indeed, a quarter of enterprises have either
revolutionized the end-user experience or transformed it to become an industry leader. While the
majority are still less than halfway towards meeting their digital transformation goals, meaning there is
a risk they will be left behind by rapidly accelerating transformation, the findings show that businesses
that can keep pace with disruption can deliver real transformation.

In the majority of organizations, digital transformation is driven by the IT department with other
business functions taking a back seat. At the same time, the majority of projects are reactive in nature
– responding to competitor activity or changes in legislation instead of original ideas from within the
business. There are also clear risks with how organizations are approaching digital projects: 52 percent
say they are so fixated on the need for digital transformation that they risk rushing into projects that
won’t produce the results they need.

Enterprises are still facing challenges with using data to support digital projects. Most have had digital
projects fail, reduce in scope, or suffer delays because their legacy database couldn’t support them,
while many are reducing their ambitions or adopting new technology more slowly due to a reliance
on legacy technology. This may be scaring organizations away from digital initiatives: 95 percent of
respondents agree that digital transformation can seem an insurmountable task – with around two-
thirds saying this is often or always the case.

3
On average, Ultimately, enterprises still fear that a failure to embrace digital transformation will result
enterprises spent in stagnation and failure – both at an organizational and a personal level. The majority
$24.15 million on believe that enterprises will go out of business or be absorbed by a competitor in less
digital innovation
than four years if they can’t keep up with digital innovations, while teams would also face
and transformation
projects in the last being fired if digital projects don’t succeed. The next 12 months is likely to see increased
12 months. pressure on digital transformation teams: 86 percent of respondents say that the next 12
months will be a critical period for businesses to either adapt to providing digital services,
or accept that they are now less relevant.

Part 1: Is the digital revolution soaring or stalling?

In 2017, Couchbase established that, despite the challenges they face, enterprises are
pursuing digital transformation. This is still the case in 2018, but one significant question
is whether organizations are able to keep up with the pace of transformation, or whether
a digital revolution is leaving them behind. Eighty-five percent of digital leaders say that
disruption in their industry has accelerated over the past 12 months, with 37 percent saying
it has accelerated “rapidly” (figure 1).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

No, the amount of disruption and innovation has fallen

No, disruption has remained constant
Yes, steadily
Yes, rapidly

Figure 1: Do respondents believe that disruption in their industry has accelerated over the past 12 months?

This accelerated disruption is being matched with increased spending. On average,

enterprises spent $24.15 million on digital innovation and transformation projects in the
last 12 months (figure 2), and plan to spend $27.64 million in the next 12 months (figure 3)
– representing a budget increase of more than 14 percent.

$28.00

$26.00

$24.00

$22.00

$20.00
Total US UK France Germany

Average spend (millions of USD)

Figure 2: Average spend on digital innovation and transformation projects in the last 12 months

4
79 percent of
respondents agree $40.00
that, while the
revolutionary $30.00

potential of digital
$20.00
projects is often
talked about, most $10.00
of the time they only
$0.00
deliver incremental
Total US UK France Germany
improvements.
Average spend (millions of USD)

Figure 3: Average planned spend on digital innovation and transformation projects in the next 12 months

Despite accelerated disruption and growing budgets, many organizations’ digital

transformation goals are still far off: 53 percent say they are less than halfway to achieving
their transformation goals, and 13 percent are less than one-fifth of the way to their goals
(figure 4).

While this rapid disruption can seem a challenge, it is also an opportunity. With digital
transformation a continuous process, rather than one with a set destination, enterprises
that can keep pace with accelerating disruption can deliver revolutionary results.

100%

80%

60%

40%

20%

0%
Total US UK France Germany

0-20% achieved 76-99% achieved

21-50% achieved 100% achieved
51-75% achieved

Figure 4: How far along respondents believe their organization is in meeting current digital
transformation goals

Part 2: Organizations’ digital progress

Digital leaders are in almost unanimous agreement that the ultimate aim of digital
transformation should be to give customers and end users a truly unique experience
(figure 5). However, this objective is not always reflected in reality: 79 percent of
respondents agree that, while the revolutionary potential of digital projects is often talked
about, most of the time they only deliver incremental improvements (figure 6).

5
99 percent have
made at least 100%
incremental
improvements 80%
(compared to 96
60%
percent in 2017).
40%

20%

0%
Total US UK France Germany

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

Figure 5: Do respondents agree that the ultimate aim of digital transformation should be to give
customers and end users a truly unique experience?

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

Figure 6: Do respondents agree that while the revolutionary potential of digital experiences is often
talked about, most of the time they only deliver incremental improvements?

Despite this, enterprises are making more progress in transforming the end-user
experience than they were in 2017: 99 percent have made at least incremental
improvements (compared to 96 percent in 2017), and 25 percent have either transformed
the experience to become an industry leader or completely revolutionized the experience
to the extent it’s unique in their industry (compared to 15 percent in 2017) (figure 7).

6
There is less attention
paid to areas that also 100%
benefit the Massively
Interactive Enterprise, 80%

such as worker-facing
60%
experiences
(47 percent) and 40%
machine-to-machine
services (37 percent). 20%

0%
Total US UK France Germany

Not at all
Made some incremental improvements
Made significant improvements
Transformed the experience to become an industry leader
Completely revolutionized the experience to the extent it’s unique in their industry

Figure 7: To what extent have organizations been able to transform the end-user experience through
digital innovation projects in the past year?

One question raised with digital transformation is where organizations should focus their
efforts. We are entering the era of the Massively Interactive Enterprise, where digital
experiences can transform every part of a business – from customer experience to
business functions such as sales and marketing, HR, and finance, and even logistics and
manufacturing. Currently, respondents are focusing their digital transformation efforts on
customer-facing experiences (66 percent) and business processes such as logistics (62
percent). There is less attention paid to areas that also benefit the Massively Interactive
Enterprise, such as worker-facing experiences (47 percent) and machine-to-machine
services (37 percent) (figure 8).

80%

60%

40%

20%

0%
Total US UK France Germany

Customer-facing experiences Machine-to-machine services

Business processes, e.g., logistics None of these
Worker-facing experiences

Figure 8: Where in the organization are respondents focusing their efforts on digital transformation
projects?

7
In 2018, efficient There is also a small shift in the benefits enterprises see from digital transformation
working practices have projects. In 2017, the most-reported benefit was more efficient working processes,
dropped noticeably: identified by 62 percent of respondents, followed by improved customer experience
the most-reported
(56 percent) and increased worker productivity (44 percent). In 2018, efficient working
benefit is improved
practices have dropped noticeably: the most-reported benefit is improved customer
customer experience
(56 percent of experience (56 percent), followed by more efficient working processes
respondents), followed (53 percent) and increased worker productivity (49 percent) (figure 9).
by more efficient
working processes (53
percent) and increased 80%

worker productivity
60%
(49 percent).
40%

20%

0%
Total US UK France Germany

Improved customer experience Reaching more customers over more channels

More efficient working processes Bringing new services and products to market faster
Increased worker productivity Expansion into new regions
Improved business end-user experience Reduced expenditure
Increased profitability of products and services None of the above
Improved compliance

Figure 9: Benefits respondents can tangibly show their organization has realized from digital projects
in the last 12 months

For the Massively Interactive Enterprise, recognizing that there is opportunity for
transformation across the business, as opposed to focusing on the most obvious digital
projects, has the potential to deliver the greatest benefits across the entire organization.
This in turn will increase the chances of the enterprise delivering on the ultimate aim of
digital transformation, thus joining that 25 percent of truly transformational organizations.

Part 3: What is driving digital?

Digital transformation is increasingly a strategic concern for an organization. The potential
to completely transform the business and revolutionize the experience of customers
and workers means that all business functions should have a hand in suggesting and
supporting digital projects. There is also the question of why an enterprise is pursuing
digital transformation. There is a good chance that a project created through an original
idea within the business will have greater potential to deliver a revolutionary, unique
service than one created in response to competitors’ own advances.

In the majority of surveyed organizations, the IT function drives digital transformation

the most: 76 percent of respondents, when asked which area of the business had driven
digital transformation the most over the past five years, ranked IT first, second, or third.
The next most influential area was business executives – such as the CEO or board – which
was ranked first, second, or third by 47 percent. Other business functions were some way
behind these, suggesting that transformation is still driven by a narrow range of business
areas in most cases (figure 10).

8
The most-cited driver
was responding to 100%
advances made
by competitors, 80%

chosen by 35 percent
60%
of digital leaders.
40%

20%

0%
Total US UK France Germany

IT Sales
Business executives (e.g., CEO, board) Finance
Marketing HR
Logistics Manufacturing

Figure 10: Which areas of organizations have driven digital transformation the most in the last
five years?

Asked to identify the primary driver for digital transformation in their organization in
the past five years, respondents’ answers were more varied. The most-cited driver was
responding to advances made by competitors, chosen by 35 percent of digital leaders.
After this came responding to changes in regulation (23 percent). An original idea from
the business was identified by 20 percent – just ahead of pressure from customers for
new services (19 percent) (figure 11).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Responding to advances made by competitors

Responding to changes in regulation
An original idea from within the business
Pressure from customers for new services
Something else
No drivers for digital transformations in the organization

Figure 11: What has been the primary driver behind organizations’ digital transformation in the last
five years?

One potential reason organizations are not pursuing more unique, revolutionary
transformation projects is that teams aren’t given the freedom and resources to pursue
their own, ideally more creative, digital projects. However, 60 percent of digital leaders
say their organization supports teams or individuals taking time to pursue new, potentially
revolutionary digital transformation projects on their own initiative – and indeed, that
workers are actively encouraged to pursue projects. A further 34 percent say workers are
free to pursue their own projects as long as time allows (figure 12).

9
The greatest risk in
digital transformation 100%
is that organizations
develop a fixation on 80%
digital transformation
60%
for its own sake:
deciding that in 40%
an environment of
accelerating disruption, 20%
any transformation
0%
is better than no
Total US UK France Germany
transformation.
Yes, they are actively encouraged to pursue projects
To an extent – they are free to pursue their own projects as long as time allows
No, they aren’t supported

Figure 12: Do organizations support teams or individuals taking time to pursue new projects on their
own initiative?

The greatest risk in digital transformation is that organizations develop a fixation on

digital transformation for its own sake: deciding that in an environment of accelerating
disruption, any transformation is better than no transformation. This can create poorly
planned projects that don’t produce the expected benefits, or potentially even harm the
organization. Fifty-two percent of digital leaders say that their organization is so fixated on
the need for digital transformation that they risk rushing into projects that won’t produce
the results they need (figure 13).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Yes
No

Figure 13: Are respondents’ organizations so fixated on the need for digital transformation that they
risk rushing into projects that won’t produce the results they need?

Businesses that allow digital transformation to be driven by any part of the organization
are more likely to find the seeds of a transformative, or even revolutionary, experience –
whether that is for a customer, a factory worker, or even an Internet of Things (IoT) device.
They also have a greater chance of avoiding the risk of feeling pressured into pursuing
a potentially wasteful project, thanks to having a much larger source of ideas to draw
from. At the same time, the benefits projects create are likely to shift to ones the business
maybe didn’t even realize it needed. While IT is likely to always be a significant stakeholder
in digital projects, it shouldn’t be seen as the function with sole – or even the greatest –
responsibility for driving new ideas.
10
86 percent of digital Part 4: The data challenge
leaders say their Technology plays a major part in any digital transformation: providing a channel to
ambitions to use create new services, and sometimes presenting an obstacle that has to be overcome. As
data for new digital
technologies such as virtual and augmented reality, artificial intelligence, IoT, and edge
services are being
held back. computing become more common, enterprises need to ensure they can use data to
support new services that can take full advantage.

Restricted ambitions
Eighty-six percent of digital leaders say their ambitions to use data for new digital services
are being held back. The most common factor cited was the complexity of using multiple
technologies, mentioned by 43 percent of respondents. Other common answers included a
reliance on legacy database technology (37 percent); a lack of resources (36 percent); and
a lack of skills (33 percent) (figure 14).

60%

40%

20%

0%
Total US UK France Germany

The complexity of using multiple technologies Inability to secure the necessary budget
Reliance on legacy database technology Lack of buy-in across the organization
Lack of resources Lack of support from CEO and/or board members
Lack of skills Nothing holding back ambitions

Figure 14: Factors holding back organizations’ ambitions to use data for new digital services

Partly because of these challenges, a number of organizations believe that it will take
several years to begin using new technologies. Thirty-two percent of respondents believe
it will take them more than five years to begin using artificial intelligence; 24 percent
believe the same for virtual reality; 22 percent for augmented reality; 21 percent for edge
computing; 18 percent for blockchain; and 7 percent for mobile, which is the most well-
entrenched technology (figure 15).

100%

80%

60%

40%

20%

0%
Edge Artificial Augmented Virtual Blockchain Mobile
Computing Intelligence Reality Reality

It’s impossible to tell Within 5 years Within six months

Within 10 years Within a year Already using this technology

Figure 15: Expected timescale for using technologies: Total

11
87 percent of Even when organizations can use a technology, there is no guarantee that they will be
organizations have able to use it to its full extent. For instance, 87 percent of organizations have to scale back
to scale back their their ambitions for new applications so that they will work with IoT or mobile devices. As a
ambitions for new
result, potentially revolutionary services cannot meet their full potential due to limitations
applications so that
such as the amount of data a mobile device can process, or the need for an always-on
they will work with IoT
or mobile devices. connection (figure 16).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Yes, always Yes, sometimes

Yes, often No, never

Figure 16: Do respondents have to scale back ambitions for new applications and services to ensure
they will work with IoT or mobile devices?

Another example of how technology can frustrate digital teams is the inability to use
data in real time. This is critical to many modern digital services; for instance, in
providing a live personalized service to shoppers, or calculating optimum performance
for a manufacturing line. Yet the number of organizations that can use data in real time
has dropped dramatically from 41 percent in 2017 to 29 percent in 2018. Indeed, 43 percent
of organizations operate based on data that is more than six hours old
(figure 17).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Can use data in real-time Approx. 3 days old or less

Approx. 3 hours old or less Approx. 1 week old or less
Approx. 6 hours old or less Approx. 2 weeks old or less
Approx. 12 hours old or less 1 month old or less
Approx. 1 day old or less More than 1 month old

Figure 17: Most recent customer data respondents’ databases can use

12
74 percent of Fighting the database
respondents say Organizations often identify their database as a barrier to successful digital projects – in
their organizations particular, a reliance on legacy databases that, while perfectly suited for legacy tasks,
are adopting new
cannot support more modern demands such as the ability to process masses of potentially
database technology
more slowly than they unstructured data in real time.
should because they
rely heavily on their Eighty-eight percent of digital leaders have had a digital project fail (50 percent), reduce
legacy databases. in scope (25 percent), or suffer significant delays (13 percent) because their legacy
database technology couldn’t support their needs. This has changed little from 84 percent
who reported similarly in 2017 – suggesting that this will remain an ongoing issue (figure
18).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Yes, after significant time and resources were invested in it

Yes, but before significant time and resources were invested in it
No, but scope of the project had to be reduced due to the cost of making changes to legacy technology
No, but have had to delay the project significantly
Have never had issues

Figure 18: Respondents who have had a digital project fail because their legacy database technology
couldn’t support it

Ideally, organizations should be able to steadily modernize their database infrastructure

either by adopting new technology alongside their legacy database to support new
functionality, or by upgrading and replacing legacy technology itself. However, 74 percent
of respondents say their organizations are adopting new database technology more
slowly than they should because they rely heavily on their legacy databases (figure 19).
If organizations cannot address this reliance, they are at serious risk of falling further and
further behind more agile competitors.

13
66 percent of
respondents feel 100%
that they are using
more databases than 80%
they should – with 18
percent stating that 60%

they’re finding it hard 40%

to cope.
20%

0%
Total US UK France Germany

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

Figure 19: Respondents who believe their organization is adopting new database technology more
slowly than it should because it relies heavily on legacy databases

The database estate

As organizations update their database estate to support new applications, there is a risk
that they will introduce database sprawl – an infrastructure where an increasing number
of databases creates management issues for IT teams who have to support a wide range
of technologies.

Currently, many organizations’ database estates are set up in a way that makes database
sprawl more likely – and so increases the chance of management headaches. Thiry-six
percent of respondents’ enterprises use multiple databases for each of their applications,
meaning these organizations will see an exponential increase in infrastructure complexity
for each application they add (figure 20).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Use multiple databases for each of their applications to cover different discrete functions – i.e., analysis, transactions, etc.
Use multiple databases for discrete functions, but share those functions across different applications
Use one database for each of their applications, covering all discrete functions
Use one database for multiple, similar applications that cover all discrete functions
Use a single database for each discrete function, but share those functions across all applications
Use one database for all applications
Don’t know

Figure 20: Setup of respondents’ database infrastructure

14
The most common Digital leaders recognize that database sprawl is an issue. Sixty-six percent of respondents
method used is feel that they are using more databases than they should – with 18 percent stating that
on-premises, with they’re finding it hard to cope. A further 25 percent state that it would still be good to
60 percent of
consolidate more (figure 21). Indeed, 70 percent of respondents would prefer that their
respondents using
it for at least a organization used a single data platform that performs all the functions needed to engage
proportion of with customers, employees, and business processes – and 8 percent already do so
their estate. (figure 22).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Yes, and it’s hard to cope No, but it would be good to consolidate more
Yes, but they can manage them No, not at all

Figure 21: Do respondents feel their organization is using more databases than it should?

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Yes No They already do

Figure 22: Respondents preferring that their organization used a single data platform that performs
all the functions needed to engage with customers, employees, and business processes

There is also the question of how enterprises provision their databases. The most
common method used is on premises, with 60 percent of respondents using it for at
least a proportion of their estate. Forty-eight percent use private cloud, and others use
a single public cloud infrastructure, such as AWS (32 percent), multiple public cloud
infrastructures (32 percent), or multiple Database-as-a-service providers (31 percent)
(figure 23).

15
95 percent of
respondents 80%
agree that, thanks
to factors such 60%

as these, digital
40%
transformation
can seem an 20%
insurmountable
0%
task – with 64
Total US UK France Germany
percent saying this
is often or always On-premises IT Multiple Database-as-a-service providers
the case. Private cloud A single Database-as-a-service provider
A single public cloud infrastructure (e.g., AWS) Don’t know
Multiple public cloud infrastructures

Figure 23: Methods organizations use to provision databases

Securing the database

New regulations such as the European Union's General Data Protection Regulation (GDPR),
coupled with a number of high-profile security breaches – whether caused by flaws in the
database, or user error – have made organizations much more aware of the need to secure their
database estate, in order to protect customer and business data and their own reputations.

Eighty-three percent of digital leaders say they are under increased pressure to secure
their organization’s database – 30 percent because of GDPR, 20 percent because of
publicized breaches, and 25 percent because of both (figure 24).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Yes, because of GDPR

Yes, because of publicized breaches
Yes, because of both GDPR and publicized breaches
Yes, but not because of either of these
They were, but have taken all the action they can
No, they don’t feel under pressure

Figure 24: Respondents feeling under increased pressure to secure their organization’s database

Indeed, in more than three quarters of enterprises (79 percent), making applications and
processes secure by default is given more significance and attention than making sure
that developing and using the application is as easy as possible (figure 25). This does not
mean that digital leaders will have to sacrifice their ambitions for new applications and
experiences across the organization, but it does mean that development may be more
complex and time-consuming than intended, and needs to be factored into any plans.

16
64 percent of
respondents believe 100%
that organizations will
go out of business 80%
or be absorbed by a
competitor in less than 60%

4 years if they can’t 40%

keep up with digital
innovations. 20%

0%
Total US UK France Germany

That the application and process is secure by default

That developing and using the application is as easy as possible

Figure 25: Which of security and usability is given greater significance when developing
new applications?

Security is only one factor that can make digital transformation seem daunting. Other
factors such as a lack of clarity on capabilities and goals, a lack of a defined endpoint, and
often a huge number of tasks to complete in a limited time to make a project succeed,
can also dissuade organizations from pursuing projects. Given these factors, 95 percent of
respondents agree that digital transformation can seem an insurmountable task – with 64
percent saying this is often or always the case (figure 26).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

Always true Often true Occasionally true Never true

Figure 26: Respondents who believe that digital transformation can seem an insurmountable task

Solving the data challenge

The data challenge should be solvable for enterprises – the risk they face is from the
increasing pressure being put on them to transform at speed. To begin with, organizations
need to recognize that transformation is not a single destination – it is a continuous
process that must be underpinned with the right infrastructure. With this understanding,
enterprises can begin to ensure that their database infrastructure is designed to support
continuous transformation, and at the speed the environment now demands.

In order to transform at speed, businesses need a data architecture that is agile enough
to facilitate sudden changes in direction, can perform at scale, and is secure. This
doesn’t mean immediately retiring legacy architecture, which is likely to still be suited

17
86 percent say that to specific applications, like performing transactions. But it does mean ensuring that
the next 12 months there is a data architecture in place that can support more modern applications, where
will be a critical end-user engagement demands that the application can access, search, analyze, and
period for businesses
process thousands, or even millions, of items of data before the end user ever reaches the
to either adapt to
transaction stage.
providing digital
services, or accept
that their business is Part 5: Consequences
now less relevant. Despite the view of digital transformation as an insurmountable task, digital leaders
still agree that businesses have to pursue it. Indeed, the average predicted lifespan for
organizations that cannot meet digital demands has shrunk since 2017 – from 4 years and 11
months to 4 years and 5 months (figure 27). At the same time, 64 percent of respondents
believe that organizations will go out of business or be absorbed by a competitor in less
than 4 years if they can’t keep up with digital innovations (figure 28).

100%

80%

60%

40%

20%

0%
Total US UK France Germany

1 year or less Between 8 and 10 years

Between 2 and 4 years Longer than 10 years
Between 5 and 7 years

Figure 27: Length of time respondents believe a business that can’t keep up with digital innovation
in their industry can survive before going out of business or being absorbed by a competitor

0
Total US UK France Germany

Average lifespan (years)

Figure 28: Average lifespan for businesses that can’t keep up in their industry

Respondents also agree that pressure on digital teams is likely to increase in the next year:
86 percent say that the next 12 months will be a critical period for businesses to either
adapt to providing digital services, or accept that their business is now less relevant
(figure 29).

18
92 percent of
respondents say 100%
they would be fired,
or suffer other 80%

consequences, as
60%
a result of a digital
project either failing 40%
or suffering other
setbacks – up from 20%

85 percent in 2017. 0%
Total US UK France Germany

Yes No

Figure 29: Respondents who believe the next 12 months will be a critical period for businesses to
either adapt to providing digital services or accept that the business is now less relevant

Digital leaders are also well aware that, should a digital project fail, their teams will feel the
consequences. Ninety-two percent of respondents say they would be fired, or suffer other
consequences, as a result of a digital project either failing or suffering other setbacks
– up from 85 percent in 2017 (figure 30).

50%

40%

30%

20%

10%

0%
Total US UK France Germany

Investing in technology that leads to a security breach
Investing in technology that cannot meet regulatory standards
Allowing a project to go drastically over time and/or over budget
Investing in technology that fails to meet scalability
and/or performance requirements
Failure to deliver against original objectives
Negative feedback from customers and/or end users
Not meeting the demands of all business stakeholders
None, employees are not evaluated on the success or
failure of any digital projects
None, but there would be other consequences

Figure 30: “Fireable” offenses identified by respondents when implementing a digital project

All of this is likely to add to the pressure on digital teams and make them feel even more
pressured into rushing into digital projects that may not produce the necessary benefits.
Yet at the same time, the consequences of failure can leave teams paralyzed – as they
cannot guarantee success. Organizations need to study those enterprises that have
succeeded in digital transformation to see how they drive projects, and what technology
they use in the process.

Part 6: What does success look like?

As we have seen, some organizations are already making great strides in their digital
transformation efforts. Six percent say they have completely revolutionized the end-
user experience to the extent it’s unique in their industry. So what do these revolutionary
organizations look like?

19
92 percent believe Revolutionaries know the challenges organizations face
that disruption in Ninety-two percent believe that disruption in their industry has accelerated over the
their industry has last 12 months with 73 percent citing "rapidly." Fifty-four percent believe that digital
accelerated over
transformation can always seem an insurmountable task. And 92 percent believe the
the last 12 months –
73 percent rapidly. next 12 months will be a critical period for businesses to either adapt to providing digital
services or accept they are now less relevant (figure 31).

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes, rapidly No, disruption has remained constant

Yes, steadily No, the amount of disruption and innovation has fallen

Figure 31: The challenges revolutionaries believe organizations face

a. Pace of disruption

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Always true Often true Occasionally true Never true

Figure 31: The challenges revolutionaries believe organizations face

b. Can digital transformation seem an insurmountable task?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No

Figure 31: The challenges revolutionaries believe organizations face

c. Will the next 12 months be a critical period for businesses?

This makes it clear that successful organizations have little or no illusions about how
challenging digital transformation can be. However, they also take the time to understand,
and so overcome, these challenges.

20
Improvements Revolutionaries invest heavily in digital
don’t need to come These organizations spent an average of $60 million on digital innovation and
at such a huge cost – transformation projects in the last 12 months – nearly 2.5 times the overall average –
those respondents
with 27 percent spending more than $100 million. They also plan to spend an average
reporting significant
improvements from of $61 million in the next 12 months (figure 32).
their digital projects
spent an average of
$20 million in the
last 12 months. In next
12 months

In last
12 months

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00

Average spend (millions of USD)

Figure 32: Historic and planned investment in digital transformation

Enterprises looking to truly revolutionize their digital experience need to be clear that
revolution requires investment. However, improvements don’t need to come at such
a huge cost – those respondents reporting significant improvements from their digital
projects spent an average of $20 million in the last 12 months.

Revolutionaries recognize multiple benefits from digital

While other organizations report improved customer experience as the main benefit,
these revolutionary organizations have realized increased worker productivity (65
percent), improved business end-user experience (65 percent), improved compliance
(69 percent), and expansion into new regions (62 percent) (figure 33). Similarly, they
are focusing their efforts on digital transformation projects across the organization: from
business processes (85 percent) to customer-facing experiences and machine-to-machine
services (both 81 percent) to worker-facing experiences (69 percent) (figure 34).

0% 10% 20% 30% 40% 50% 60% 70% 80%

Improved customer experience Reaching more customers over more channels

More efficient working processes Bringing new services and products to market faster
Increased worker productivity Expansion into new regions
Improved business end-user experience Reduced expenditure
Increased profitability of products and services None of the above
Improved compliance *In the last 12 months

Figure 33: Benefits realized by revolutionary organizations

21
These organizations
spent an average
of $60 million on
digital innovation
and transformation
projects in the last
12 months.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Customer-facing experiences Machine-to-machine services

Business processes, e.g., logistics None of these
Worker-facing experiences

Figure 34: Focuses of digital transformation projects

In part, these organizations are succeeding because they recognize the potential that
digital transformation brings to all areas of the business. Instead of being fixated in specific
areas, they have been able to spot an opportunity for revolutionary transformation, and
take it.

Different business areas drive digital strategy

IT is still the primary driver of digital projects in these organizations, ranked in the top
three by 58 percent of these organizations. However, its lead is much less significant than
in most – business executives, sales, and finance are all close behind, with all placed in the
top three drivers by 46 percent of respondents (figure 35).

0% 10% 20% 30% 40% 50% 60% 70%

Manufacturing Finance Logistics Business executives (e.g., CEO, board)

HR Sales Marketing IT

Figure 35: Parts of the business driving digital projects

Again, these businesses are succeeding partly because they recognize the contribution
that the entire enterprise can make to digital strategy, and listen widely for ideas on how
to improve services and capabilities.

22
81 percent say that Revolutionaries are still under pressure to transform
their organization is The most common motive for digital transformation is still responding to competitors’
so fixated on the advances, reported by 42 percent of these organizations. In comparison, original ideas
need for digital
from within the business spur 27 percent of projects (figure 36). There is also potentially
transformation that
it risks rushing into even greater pressure on them: 81 percent say that their organization is so fixated on the
projects that won’t need for digital transformation that it risks rushing into projects that won’t produce the
produce the results results they need (figure 37).
they need.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Responding to advances made by competitors

Responding to changes in regulation
An original idea from within the business
Pressure from customers for new services
Something else
We have no drivers for digital tranformation in our organization

Figure 36: Primary drivers for digital transformation

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No

Figure 37: Respondents identifying fixation on digital transformation that raises risk of rushing into
unproductive projects

One of the great differences between a successful organization and others is likely to
be how they respond to this pressure. By recognizing the risks that rushing into projects
presents, enterprises can ensure they react accordingly and take the time to understand
the best course of action.

Revolutionaries still encounter technology limitations

They may invest more, but successful organizations still run up against the limitations
of technology. Ninety-two percent have had a project fail, be delayed, or be reduced in
scope because their legacy database technology couldn’t support it – 69 percent reporting
failure after significant investment of time and resources (figure 38). Ninety-two percent
also have to scale back their ambitions for new applications to ensure they will work with
mobile or IoT devices (figure 39). Similarly, this is likely to be due to a reliance on legacy
technology: 85 percent are adopting new database technology more slowly than they
should because they rely heavily on their legacy databases (figure 40), while 89 percent
say their organization is using more databases than it should (figure 41).

23
89 percent say
their organization
is using more
databases than
it should.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes, after significant time and resources were invested in it

Yes, but before investing significant time and resources in it
No, but the scope of the project has had to be reduced due to the cost of making changes to legacy technology
No, but the project has had to be delayed significantly
No, they've never had any issues

Figure 38: Respondents identifying digital project failure due to legacy database technology

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes, always Yes, often Yes, sometimes No, never

Figure 39: Respondents that have had to scale back mobile or IoT ambitions

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

Figure 40: Respondents adopting new database technology more slowly than they should

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes, and it’s hard to cope No, but it would be good to consolidate more
Yes, but they can manage them No, not at all

Figure 41: Respondents saying their organization uses more databases than it should

24
Methodology A significant difference for these organizations is likely to be that their ambitions are so
The report is based on an high that they will feel more constricted by technical limitations – even as they exceed the
online survey conducted achievements of their competitors. After all, if an organization is continually developing
in June and July 2018 revolutionary applications, its ambition will be to do even more, not to rest on its laurels.
by Vanson Bourne, an
independent market
research organization, Part 7: Conclusion
of 450 heads of digital Enterprises are entering a critical period; the way in which they approach digital
transformation, such as
transformation over the next 12 months could easily decide whether they survive or thrive.
CIOs, CDOs and CTOs,
in organizations with However, this is creating significant pressure on digital teams: if digital transformation is
1,000 employees or entirely reactive, and based on poorly understood pressures instead of what the business
more in the US, UK, actually needs, the result will be, at best, wasted investment. At worst, enterprises
France and Germany.
could find themselves chasing their tails and missing the opportunity to develop digital
experiences that make them competitive.

To avoid this, organizations need to ensure that they understand the challenges they face;
that they are exploring the entire business to decide where to focus their transformation
efforts; and that technology is not holding back their digital ambitions. By doing this, they
will be well-positioned to join the truly transformational 25 percent.

About Couchbase
Couchbase’s mission is to be the data platform that revolutionizes digital innovation. To make this possible, Couchbase
created the world’s first Engagement Database to help deliver ever-richer and ever-more-personalized customer and
employee experiences. Built with the most powerful NoSQL technology, the Couchbase Data Platform was architected
on top of an open source foundation for the massively interactive enterprise. Our geo-distributed Engagement Database
provides unmatched developer agility and manageability, as well as unparalleled performance at any scale, from any
cloud to the edge.

couchbase.com © 2018 Couchbase. All rights reserved.