Short-term focus slows digital transformation for UK firms

Research from technology consultancy Crosstide has found that one in five digital transformation strategies at UK organisations have been negatively affected by a focus on short-term results rather than long-term planning.

The survey, which gathered insights from 500 Chief Information Officers (CIOs) and Chief Technology Officers (CTOs) representing UK-based companies with annual revenues of GBP £750 million or more, indicates that delayed investment in technology initiatives and the pressure to quickly demonstrate return on investment (ROI) are key factors driving this short-term approach.

According to the study, 44.8% of respondents identified delayed investment in technology initiatives as the main contributor to short-term thinking. Meanwhile, 40.6% pointed to the pressure to demonstrate ROI as a significant challenge impacting their ability to focus on long-term transformation goals.

The research covered companies operating within industries including retail, asset and wealth management, insurance, life sciences, and payments. It examined both the barriers to successful digital transformation and the support needs of technology executives tasked with navigating this journey.

When asked what would best enhance their ongoing digital transformation efforts—besides an increase in general budget—CIOs and CTOs identified several priorities. These included more empowerment to drive change (23.4%), increased investment in artificial intelligence (22.8%), stronger cybersecurity systems (21.2%), and clearer direction from chief executives and boards (20.8%). In organisations considered further along in their digital transformation journey, 24% marked clearer direction from the CEO or board as the top necessity.

The survey also explored current obstacles facing technology leaders as they attempt to fulfil their roles internally. The most frequently cited challenge was the presence of legacy IT systems, which 26.8% of participants said was slowing progress. Other prominent difficulties included the poor perception of previous transformation projects and their business impact, and the inability to effectively prioritise initiatives (both at 25.6%).

Both the negative legacy of prior digital transformation efforts and issues with prioritisation were found to be even more pronounced in companies that are considered more advanced in their transformation journeys.

"It has never been harder to be an enterprise CTO or CIO. Challenging economic and sociopolitical pressures are slowing the pace of technology transformation. Investments in critical technology initiatives are being delayed, long-term roadmaps are giving way to short-term priorities, and technology leaders lack the direction, funding and empowerment to drive the change agendas demanded of them," Richard Neish, Chief Executive Officer of Crosstide, commented on the findings.

"Enterprise technology leaders find themselves squarely in the middle of competing priorities, unproven technologies, financial sensitivity and the pressure to deliver on rising expectations with falling budgets. Good leaders are adopting new strategies to effect change, such as a test and learn mindset, building scalable foundations, measuring what matters and innovating how you work, not just what you build," Neish added.