According to the 2021 State of Ecosystem and Application Integration Report, an annual survey published today by Cleo, the COVID-19 pandemic shined a spotlight into the glaring integration gaps in supply chain processes, revealing more clearly than ever how such gaps impede revenue and threaten business survival.
In response, companies aggressively moved their integration solutions to the cloud, giving their supply chains the agility to not only absorb disruption, but outsmart it through improved visibility, control, analytics, and real-time insights.
When asked how much annual revenue was lost in 2020 due to poor integrations, 66% of respondents said their companies lost up to $500,000, compared with 43% the prior year. And 10% estimated they lost more than $1,000,000 due to integration issues in 2020.
Key findings from the survey include:
“Digitalization of business and cloud integration initiatives are not new to B2B organizations, but in 2020, the pandemic shined a light on how important these initiatives are to revenue growth – and for some, survival,” said Tushar Patel, CMO of Cleo. “Organizations have gained a new perspective on how important modern integration platforms are to dynamically respond to market conditions, whether those are new revenue opportunities or supply chain disruptions. This shift in mindset and urgency accelerated the adoption of ecosystem integration. We expect this trend will continue for years to come.”
Relative to integration technology, the survey revealed that companies do not have sufficient visibility into or control over what’s really happening with their supply chains:
Other integration-related trouble spots that negatively impacted businesses in 2020: 38% of respondents identified siloed, one-off solutions as an impediment to revenue. Thirty-five percent pointed to difficulty integrating new applications, and 34% mentioned poor integration visibility as causing revenue problems. Although these metrics improved slightly year over year, persistent integration challenges like these continue to hold companies back.
One clear takeaway from the survey is that organizations have gained a new perspective on the value of cloud integration, prompting nine out of ten B2B companies to take immediate action and change the way they do business with their ecosystem.