REPORT

M U LES O F T R ES EARC H

2023 Connectivity
Benchmark Report
In collaboration with
Contents

1 2 3

Executive Summary IT Delivers More as Leaders The Cost of Failing to Digitally

Invest in Efficiency Transform Is Higher Than Ever

4 5 6

Integration Challenges Remain Customers Now Expect Teams Across the Business
as App Volume Surges Connected Experiences Demand Automation

7 8

APIs Help Maximize Cost Appendix

Saving and Revenue
 $11.7 million
Executive Summary
IT Delivers More as Leaders Invest in Efficiency
Leaders today want more out of IT and have increased their IT investment to $11.7 million on
$11.7
average. IT is better able to meet business demands as more teams successfully completed all
million
$11.7 million
projects asked of them last year.

9.5
See chapter 2

The Cost of Failing to Digitally Transform is Higher Than Ever $

While most organizations are ahead of progress, the stakes for digital transformation million
$ 9.5
million 9.5
have never been higher. The average organization could lose $9.5 million should they
fail to complete their transformation initiatives. $
million
See chapter 3

Integration Challenges Remain as App Volume Surges

Integration challenges block digital transformation as enterprises add even more applications to
1061 (1,061 on average vs. 976 in 2022). Those that turn to custom integration labor
their ecosystem
976
1061
1061
976976
to solve these issues pay a high price ($4.7 million per year).
See chapter 4

  3
 

Executive Summary 

Customers Now Expect Connected Experiences

More than a third (36%) of organizations provide a completely

36 %
connected user experience across all channels, an increase from 30% 36 %
in 2022. However integrating user experiences remain a challenge for
many organizations.
See chapter 5
36 %
67 %
Teams Across the Business Demand Automation
67 % Automation adoption is on the rise. Most IT organizations centrally manage (67%)
59 67
%
%
and track (59%) automation work, but as more non-IT roles request automation
organizations are turning to no-code tools and approaches to meet demand.
59 % See chapter 6
59 %

APIs Help Maximize Cost Saving and Revenue 93 %

APIs are the key to digital transformation. They streamline development
and generate 38% of the average organizations’ revenue. Of enterprises 93 %
93
ahead of their anticipated digital transformation progress, 93% have a
% strategy.
clear API integration
See chapter 7
  4
Foreword
Following rapid post-pandemic expansion, leading organizations are shifting once again. Now more
than ever, businesses must rely on their IT teams to drive digital transformation — and macroeconomic
pressures are pushing business leaders to prioritize efficient growth and cost savings.

With these new values at the forefront, organizations are investing in IT to deliver results, streamline
workflows and productivity, overcome connectivity challenges, and empower the business to thrive in this new normal.

Leaders are making strategic decisions to meet their goals. Nearly every company is using some type of API to integrate
and connect systems and data. Many organizations are implementing approaches that empower non-IT employees
with automation capabilities. And there’s a rise in connected user experiences that ensure customers have a positive
experience. These advancements in IT operations show that efficient growth is possible when IT sets the business up
for success.

Kurt Anderson
Managing Director and API Transformation Leader,
Deloitte Consulting LLP
IT DELIVERS MORE AS LEADERS INVEST IN EFFICIENCY

IT Delivers More
as Leaders Invest
in Efficiency

  6
IT DELIVERS MORE AS LEADERS INVEST IN EFFICIENCY

Key Trends

01 02 03
IT infrastructure is becoming more IT teams are able to deliver more projects Organizations spent an average of $11.7
streamlined. Half say it’s difficult to on time. Nearly half (48%) say they million on IT staff in the past 12 months.
make changes (54%) or introduce new completed every project asked of them, up Most (78%) say IT budgets will continue to
technology (54%), compared to 74% from 44% the prior year. increase over the coming year.
and 70% last year respectively.

  7
IT DELIVERS MORE AS LEADERS INVEST IN EFFICIENCY

Spending on IT Teams
Skyrockects 2023 $11.7

With rising economic uncertainties and growing 2022 $9.4

customer expectations, business leaders are
prioritizing efficiency, results, and lowering 2021 $9.8
organizational costs. And they’re investing in IT to get
there.

On average, global organizations spent $11.7 million

on IT staff in the past 12 months, and most (78%)
expect budgets and headcount to increase over the

78 %
coming year. of enterprises expect IT
budgets and headcount to
increase over the next year.

  8
IT DELIVERS MORE AS LEADERS INVEST IN EFFICIENCY

IT Project Volumes
Average increase in IT projects year-over-year:
Continue to Rise
With this increased investment, business leaders
are expecting more from their IT teams. As a result,
the number of projects IT was asked to deliver has
increased 41% year-over-year, roughly the same
41.32% 40.48%
increase as the previous year (40%).

2023 2022

  9
IT DELIVERS MORE AS LEADERS INVEST IN EFFICIENCY

IT Delivery Improves
Despite Growing Demand Organizations able to delivered all IT projects asked of them:

Even in the face of increased business demands,

IT teams are getting better at delivering. Nearly
half (48%) say they delivered all IT projects asked
of them last year, compared to 44% in last year’s 2023 48% 2022 43%
report.

There was also a decrease in the average number of

projects that were delivered late — 30% this year vs.
52% last year.
Percentage of IT projects not delivered on time:

2023 30%
2022 52%

  10
IT DELIVERS MORE AS LEADERS INVEST IN EFFICIENCY

Existing Infrastructure Is
Less of a Challenge
78 %
Additionally, infrastructure issues are becoming
less of a barrier to transformation. Organizations 74 %
are using composable approaches to streamline 70 %
their systems, support digital projects, and increase
efficiency. 59 %

54 % 54 %
2023
2022

Find it hard to introduce Say it’s difficult to make Say their IT infrastructure
new technologies system/application makes systems overly
because of their IT changes because of their dependent on one another
infrastructure IT infrastructure

  11
THE COST OF FAILING TO DIGITALLY TRANSFORM IS HIGHER THAN EVER

The Cost of Failing to

Digitally Transform Is
Higher Than Ever

  12
THE COST OF FAILING TO DIGITALLY TRANSFORM IS HIGHER THAN EVER

Key Trends

01 02 03
With the customer experience being a Most (69%) organizations say they’re The cost of failure has increased
critical indicator of organizational success, ahead of anticipated digital transformation significantly. Organizations could lose $9.5
nearly three-quarters (72%) of customer progress. Only 10% report being behind million on average if they fail to complete
interactions are now digital. where they expected to be. digital transformation initiatives, compared
to $6.8 million in 2022.

  13
THE COST OF FAILING TO DIGITALLY TRANSFORM IS HIGHER THAN EVER

Most Customer
Interactions Are Digital
Customers today are loyal to brands that give them
the best experience. Digital access to a company is
what consumers have come to expect — which is why
72% of customer interactions today are digital.
of customer interactions

72 %
are now digital.

  14
THE COST OF FAILING TO DIGITALLY TRANSFORM IS HIGHER THAN EVER

Many Are Ahead of Digital

How organizations are tracking against expected digital transformation:
Transformation Progress
More than two-thirds (69%) of organizations say
they’re ahead of anticipated progress on their digital
transformation projects. Only 10% say they are
Ahead of anticipated
progress: 69 %
behind progress.

21%
On par with
anticipated progress:

Behind anticipated
progress:
10 %

  15
THE COST OF FAILING TO DIGITALLY TRANSFORM IS HIGHER THAN EVER

Major Transformation
Blocks Still in the Way
Integrating siloed apps and data 36%
Despite this progress, IT teams continue to face Lack of skill sets and experience
within existing IT team 36%
a number of technology and process challenges
Risk management, compliance,
that get in the way of their digital transformation. 36%
and/or legal implications
Integrating siloed apps and data (36%), lack of Hiring and retaining the IT team 34%
skills and experience (36%), risk and compliance
(36%), hiring/retaining talent (34%), and legacy Legacy infrastructure and systems 34%

infrastructure (34%) all sit at the top of the list. Migrating legacy code or
33%
applications

Business and IT misalignment 30%

Resources and budget allocation 30%

Creating a single view of your

customers 27%

Too many manual and paper

processes
27%

Time constraints 22%

0% 10% 20% 30% 40%

  16
THE COST OF FAILING TO DIGITALLY TRANSFORM IS HIGHER THAN EVER

Failure to Transform
Could Cost Millions
The average cost of failing to complete digital
transformation initiatives now sits at $9.5 million, up
significantly from last year’s estimate of $6.8 million.

Organizations must address the challenges in

the way of their transformation by adopting a
composable IT approach underpinned by low/no-
2023 $9.5 million

code tools.
2022 $6.8 million

  17
INTEGRATION CHALLENGES REMAIN AS APP VOLUME SURGES

Integration Challenges
Remain as App
Volume Surges

  18
INTEGRATION CHALLENGES REMAIN AS APP VOLUME SURGES

Key Trends

01 02 03
Application growth continues with Organizations spent an average of $4.7 Integration hinders digital transformation
organizations using an average of 1,061 million on custom integration labor in the for 80% of organizations. This figure rises
different applications. Just 29% of these past 12 months, up from $3.6 million in to 90% for organizations behind on their
applications are integrated. 2022. anticipated digital transformation progress.

  19
INTEGRATION CHALLENGES REMAIN AS APP VOLUME SURGES

Number of Enterprise
Average number of applications across the organization:
Applications Are Growing
Driven by the rise in hybrid working and the need for
employees to work more efficiently, organizations 1061 976
are using more applications than ever. On average,
organizations are using 1,061 different applications,
up from 976 in 2022.
2023 2022

843

2021

  20
INTEGRATION CHALLENGES REMAIN AS APP VOLUME SURGES

But Organizations Struggle Average percentage of integrated applications:

with Integration
On average, 29% of these enterprise applications
are integrated. Organizations that fail to prioritize 29.45% 28.42%
integration miss out on cost-savings, growth, and
efficiency opportunities. The customer experience
2023 2022
also suffers.

29.11%

2021

  21
INTEGRATION CHALLENGES REMAIN AS APP VOLUME SURGES

Custom Integration Estimated IT time spent designing, building, and testing custom

Work Is Costly integrations:

Organizations spent $4.7 million on custom

integration labor in the past 12 months on average —
40.31% 38.46%
up from $3.6 million the prior year. At a time when IT
budgets are under increased scrutiny, this approach
is unsustainable. Reusable integrations built using
2023 2022
APIs offer a more efficient, cost-effective approach.

Average spent on custom integration labor in the past 12 months:

$4.7 $ 3.6
million million

2023 2022

  22
INTEGRATION CHALLENGES REMAIN AS APP VOLUME SURGES

Integration Remains To what extent are integration challenges slowing or hindering digital

a Blocker to Digital transformation?

Transformation Somewhat or very much a

80 %
80 %
challenge 88 %
While there’s been some progress over the past 12 88 %

months, integration is still a persistent barrier for

80% of organizations. Some 90% say that data silos 20 %
Not much of a challenge or 20 %
create a challenge for their organization — unchanged not a challenge at all
12 %
from last year. 12 %
2023

2022

To what extent are data silos creating business challenges?

90 %
A lot or somewhat 90 %
90 %
90 %

10 %
Not very much or Not at all 10 %
10 %
10 %

  23
INTEGRATION CHALLENGES REMAIN AS APP VOLUME SURGES

Multiple Causes for Data integration challenges facing enterprises today:

Data Integration Failure

There are a number of different data integration
challenges facing organizations today. These include
incorporating data-derived insights into user-facing Incorporating data-derived

applications (77%), moving data from source systems

insights into user-facing
applications
77%
into the data warehouse (75%), and reusing data Moving data from source
sources across different user-facing applications (72%). systems into the data warehouse 75%

Unlocking the power of enterprise data is a complex Reusing data sources across
different user-facing applications 72%
initiative that requires a future-proofed strategy
supported by the right integration platform. Correlating data in the
warehouse to derive insights 68%

0% 30% 60% 90%

  24
CUSTOMERS NOW EXPECT CONNECTED EXPERIENCES

Customers Now
Expect Connected
Experiences

  25
CUSTOMERS NOW EXPECT CONNECTED EXPERIENCES

Key Trends

01 02 03
Over half (54%) of organizations find it hard Businesses are working to improve Integrated user experiences increase
to integrate end-user experiences. This figure customer engagement and satisfaction. customer engagement (56%), provide
is even higher among organizations that are More than a third (36%) say they provide better visibility into operations (53%),
behind their anticipated digital transformation a completely connected user experience and help innovation (51%).
progress (74%). across all channels — up from 30% in 2022.

  26
CUSTOMERS NOW EXPECT CONNECTED EXPERIENCES

Connected Experiences Percentage of organizations that provide a completely connected user

Are the Norm experience across all channels:

Integrating user experiences is tough, but

organizations are making incremental progress. More
than a third (36%) of organizations say they provide
a completely connected user experience across all
channels — compared to 30% a year ago.
2023 36% 2022 30%

18%

2021

  27
CUSTOMERS NOW EXPECT CONNECTED EXPERIENCES

Integrated User Experiences Benefits of integrating user experiences:

Are Key to Success

Organizations need to integrate their applications

56 % 56 % 49% 49%
Greater return on
and all of their user experiences to meet customer Increase in customer
engagement investment
expectations and deliver success.

The top benefits of integrating user experiences

are increased customer engagement (56%), better
visibility into operations (53%), and bolstering
innovation (51%).
53% 53% 41% 41%
Better visibility into Increased automation
operations adoption

51% 51% 41% 41%

Innovation Faster delivery of
projects to customers

  28
CUSTOMERS NOW EXPECT CONNECTED EXPERIENCES

But Integration Hurdles

Remain How difficult is it to integrate end-user experiences?

While the benefits of integrated user experiences are

promising, many organizations struggle to deliver
them. Over half (54%) of ITDMs say it’s difficult to
integrate end-user experiences. This increases to
74% among organizations that are currently behind

54 %
their anticipated digital transformation progress.

4
Hard or somewhat hard

  29
CUSTOMERS NOW EXPECT CONNECTED EXPERIENCES

Integration Challenges
Come in Many Forms Challenges towards integrating end-user experiences:

There is no single source of failure when trying to

Outdated IT infrastructure
connect user experiences across the enterprise. 41%
The most common challenges are outdated IT Security and governance
infrastructure (41%), security and governance challenges 40%

(40%), lack of automation (40%), and existing Too many manual steps
(lack of automation) 40%
custom-coded, point-to-point integrations (38%).
Existing custom-coded,
point-to-point integrations
38%

Data silos
37%
Inability to keep up with
ever-growing processes, 36%
tools, and systems
Lack of clarity on end-to-
end customer journey 36%

Lack of internal
knowledge
32%

0% 10% 20% 30% 40%

  30
TEAMS ACROSS THE BUSINESS DEMAND AUTOMATION

Teams Across the

Business Demand
Automation

  31
TEAMS ACROSS THE BUSINESS DEMAND AUTOMATION

Key Trends

01 02 03
More organizations are automating their As automation becomes a key component A number of roles outside of IT need
way to efficient growth. As a result, RPA of transformation, IT is responsible for automation tools to complete their work,
adoption is increasing across the enterprise centrally managing (67%) and tracking including data science (64%), product
— 33% of organizations plan to invest in (59%) automations. (62%), and business analysis (61%)
RPA, up from 13% two years ago. teams.

  32
TEAMS ACROSS THE BUSINESS DEMAND AUTOMATION

RPA Is On The Rise Growing investment in robotic process automation:

Automation frees up employee time, allowing them
to be more productive and efficient — which are both
critical business goals in today’s uncertain economy.
33% 31%
A third (33%) of organizations plan to invest in
robotic process automation (RPA), which is a
2023 2022
substantial increase from 13% in 2021.

13%

2021

  33
TEAMS ACROSS THE BUSINESS DEMAND AUTOMATION

IT Controls Automation Roles responsible for automating business processes:

65%
72%

Projects 49%
IT developers 72%
Automation is an aspect of digital transformation
IT operations 42%
that is closely controlled by IT. Developers (72%), IT 65%

operations (65%), and app administrators (49%) Application

0% 10% 20% 30% 40% 49% 50% 60% 70%
administrators
are most often responsible for automating business
System Integrators
processes. In most organizations, automations are hired by the business
42%

also managed (67%) and tracked (59%) centrally by

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

How automations are governed across the organization:

Automations are
managed centrally by IT 67%

Automations are tracked

59%
centrally by IT

Automation processes are 48%

mined for future optimization 67%

0% 10% 20% 30% 40% 50% 59%60% 70%

48%

0% 10% 20% 30% 40% 50% 60% 70%   34

TEAMS ACROSS THE BUSINESS DEMAND AUTOMATION

Non-IT Roles Want

Autonomy
Data
Science 64% Product 62%

IT may manage the automation, but many non-

tech roles require these capabilities in their parts
of the business. These include data science (64%),
product (62%), finance (56%), marketing (58%),
business analysts (61%), customer support (58%), Finance 56% Marketing 58%

engineering (57%), and HR (52%).

With a centralized no-code platform, organizations

can empower non-technical users to create their own
automations while ensuring that IT keeps control
over security and governance. Business
61%
Customer
Support 58%
Analysts

Engineering 57% HR 52%

  35
TEAMS ACROSS THE BUSINESS DEMAND AUTOMATION

Some Departments
Need Both Integration
and Automation
Overall, 92% of organization say at least
one of the departments listed require both
integration and automation. API management

92%
and integration tools must work in tandem to At least one department listed
effectively execute automation. on the prior page requires both
integration and automation

  36
APIS HELP MAXIMIZE COST SAVING AND REVENUE

APIs Help Maximize

Cost Saving and
Revenue

  37
APIS HELP MAXIMIZE COST SAVING AND REVENUE

Key Trends

01 02 03
Nearly all (99%) organizations use public/ Over half (56%) of organizations say they APIs support self-service IT capabilities
private APIs. Most commonly they’re used have a mature API strategy that enables in 52% of organizations (up from 35%
to develop processes for new projects non-technical business users to easily in 2018), showing that APIs can save
(53%) and for integrations (53%). integrate apps/data sources. organizations money and boost efficiency.

  38
 2023 38% 2022 35%

APIS HELP MAXIMIZE COST SAVING AND REVENUE

APIs Are Everywhere and

Generate Revenue
Nearly every organization today recognizes the 99 % of organizations use
potential of APIs. On average, API projects generate
38% of an organization’s revenue — compared to
35% in 2022.
99 % some type of API.

Average percentage of revenue

generated from API projects:
Types of API used within organizations:
55%

Both public and

private APIs
26% 55%

2023 38% 2022 35% Public APIs only

18%
26%
0% 10% 20% 30% 40% 50% 60%
Private APIs only
18%

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

  39
APIS HELP MAXIMIZE COST SAVING AND REVENUE

APIs Are Streamlining Types of API characteristics within organizations today:

Development They are part of the development

process for new projects
53%
53%
53%
Many of these organizations are using APIs for new They are used to build integrations 53%
43%
projects (53%) and to build integrations (53%). They are managed like products 43%
APIs are also improving application development 41%
They are reusable
(46%) and being reused to build new products and 41%
33%
services (44%) as organizations embrace a more They are discoverable 33%
31%
composable approach.
They are exposed to third parties 31%
31%
On average, 47% of an organization’s internal
They are monetized 31%
software assets and components are reusable — a
0% 10% 20% 30% 40% 50% 60%
number that’s been on the rise since 2018.
0% 10% 20% 30% 40% 50% 60%

Average percentage of reusable software components and assets:

2023 47%

2022 2023 46% 47%

2021 2022
42%
46%

2020 42%
2021 42%

2019 40%
2020 42%
2018 37%
2019 40%

2018 37%   40
APIS HELP MAXIMIZE COST SAVING AND REVENUE

API Integration Strategies How organizations approach and promote their API and integration strategies:

26%
30%
Our leadership mandates all
30%
Are Not Yet Mandatory projects abide by a company-wide
API integration strategy 26% 24%
25%
Our leadership communicates an upfront
Most (90%) of organizations have a clear API 24%
strategy that is implemented across the 21%
majority of the organization 25% 20%
integration strategy (unchanged from 2022). But a
Our leadership communicates an 21% 15%
third (30%) mandate that these projects abide by upfront strategy that is implemented in
parts of the business 20% 19%
a company-wide approach, an increase from 2022
(26%). We have a bottom-up emerging strategy, 15% 10%
often project-by-project by developers 19%9% 2023
Organizations that are ahead of their digital 0% 10% 20%
2022
30%
We have no clear strategy, each project 10%
transformation progress are more likely to use a follows its own development path
9%
top-down strategy.
0% 10% 20% 30%

Organizations that are ahead of their anticipated digital transformation progress based on their API strategy:

Our leadership mandates all projects abide by a

company-wide API integration strategy 33%
Our leadership communicates an upfront strategy that
is implemented across the majority of the organization 26%
Our leadership communicates an upfront strategy
that is implemented in parts of the business
21%
33%
We have a bottom-up emerging strategy, often
13%
project-by-project by developers
We have no clear strategy, each project
26%
7%
follows its own development path
21%
0% 10% 20% 30%
  41

13%
APIS HELP MAXIMIZE COST SAVING AND REVENUE

Organizations Are
Democratizing API-led
56% of ITDMs consider their organization’s strategy for
Integration enabling non-technical users to integrate apps and data
sources via APIs as mature or somewhat mature.
When given to business users in the form of no-code
tools, APIs can speed up digital transformation and
help deliver more integrated experiences.
Organizations with a mature strategy for enabling non-technical users:
Of organizations ahead of their anticipated digital
transformation progress, 68% have a mature

68%
Ahead of our anticipated
strategy to empower non-technical business users digital transformation
progress
(compared to the overall average of 56%).

30%
We are on par with
our anticipated digital
transformation progress

Behind our anticipated digital

transformation progress 22%

  42
APIS HELP MAXIMIZE COST SAVING AND REVENUE

APIs Drive Agility and

Potential Cost Savings Business benefits from APIs:

60 %
The most cited business benefit from APIs
is the ability to self-serve IT — mentioned by
over half (52%) of organizations, up from 50 %
52 %
35% in 2018. 47 %
44 % 44 % 43 %
Other business benefits, include increased 40 %

productivity (47%), innovation (44%), and 37 %

36 %
employee engagement/collaboration (44%).
30 %
As leaders navigate this challenging business
environment, the value derived from APIs
20 %
both from a cost-savings and efficiency
perspective has never been greater.
10 %

Greater agility Increased Increased Increased Increased Decrease in Experienced

across teams productivity employee innovation speed in operational revenue
to self-serve engagement meeting costs growth as a
IT and LOB direct result
collaboration demands

  43
APPENDIX

Appendix
Sector and geographic breakdowns

  44
APPENDIX

Healthcare and Life

Sciences of healthcare and life sciences
organizations are ahead of their of ITDMs in healthcare and life
73 % 90 % digital transformation %
anticipated 73 90 % sciences say data silos create
progress. challenges for their organization.

68 %
41 % 48 % 41 48 %and life sciences say their
% in healthcare

$6.338million
ITDMs
organization could lose an average of $6.3 million if
digital transformation initiatives aren’t successfully
completed.
% 73%%
38 90 %
73 % 90 %
of ITDMs in healthcare and life The average number of projects
73 % 90
sciences %
predict an increase to their 41 % 48
IT is being%asked to deliver has
IT budget in the coming year. increased by 41%.

73 % 90 % 41 % 48 %
68% of ITDMs in healthcare and life sciences say their
41 % 48 % 38 %
IT infrastructure makes their systems overly dependent APIs and API-related
of respondents successfully
on one another (vs. 59% global average). 41 % 48 % delivered all the projects asked 38 % implementations generated
38% of revenue for healthcare
of them last year.
and life sciences organizations.
38 %
38 %
  45
APPENDIX

Energy, Oil & Gas, and

Utilities of IT decision makers in energy,
of energy, oil & gas, and utilities

91% 94
organizations are ahead of their
% 91
anticipated digital transformation % 94 %
oil & gas, and utilities think that
data silos are creating challenges
progress. for their organization.

85% 50 % 85% 50 %

$8.7
ITDMs in energy, oil & gas, and utilities say
their organization could lose an average of

91
68
million
94
47
$8.7 million if digital transformation initiatives
91 94
%
% %
% 68 %
aren’t
47%
%successfully completed.
%

46 % 91% 94 % 91% 94 %
of IT decision makers in energy, oil & The average number of projects
85% 50 %
gas, and utilities 85 %
predict an increase 50 % IT is being asked to deliver has
in their IT budget in the coming year. increased by 50%.
85% 50 % 85% 50 %
IT teams in this sector spend 46% of their time 68 % 47% 68 % 47%
designing, building, and testing new custom of respondents successfully APIs and API-related

integrations between systems and data. 68 % 47

delivered% 68 %
all the projects asked 47% implementations generated
47% of revenue for energy, oil &
of them last year.
gas, and utilities organizations.

  46
APPENDIX

Financial Services and

Insurance of financial services and insurance of IT decision makers in financial

71% 88
organizations are ahead of their
% 71
anticipated digital transformation% 88 %
services and insurance think that
data silos are creating challenges
progress. for their organization.

1,116 74% 39 % 74% 39 %

$16.4
ITDMs in financial services and insurance
say their organization could lose an average

37 million71
of $16.4 million if digital transformation
71
44%
%88 44
%
% 88
37%
%initiatives aren’t%successfully completed.
%

71% 88 % 71% 88 %
of IT decision makers in financial The average number of projects
74% 39 74
% insurance predict an%
services and 39 % IT is being asked to deliver has
increase in their IT budget in the increased by 39%.
74% 39
coming year.
% 74% 39 %
44 % 37% 44 % 37%
On average, financial services and insurance of respondents successfully APIs and API-related
organizations use 1,116 individual applications (vs. 44 % 37
delivered % 44
all the projects asked % 37% implementations generated 37%
of revenue for financial services
of them last year.
1,061 global average). and insurance organizations.

  47
APPENDIX

Communications, Media,
and Technology of communications, media, and of IT decision makers in

58% 89
technology organizations are
% 58
ahead of their anticipated digital % 89 %
communications, media, and
technology think that data silos
transformation progress. are creating challenges for their
organization.

76% 41 % 76% 41 %
ITDMs in communications, media, and technology

$14.8
say their organization could lose an average of

million58
$14.8 million if digital transformation initiatives

58
44%
%89
38 44%
% %% 89
aren’t successfully completed.
38%%
58% 89 % 58% 89 %
50 % of IT decision makers in
The average number of projects
76% 41
communications, media, and
% 76 %
technology predict an increase in
41 % IT is being asked to deliver has
increased by 41%.
their IT budget in the coming year.
76% 41 % 76% 41 %
50% of ITDMs in communications, media, and
44 % 38% 44 % 38%
technology cite application and data silos as one of of respondents successfully
APIs and API-related
implementations generated
the biggest challenges to digital transformation (vs. 44 % 38
delivered % 44
all the projects asked % 38% 38% of revenue for
36% global average). of them last year.
communications, media, and
technology organizations.

  48
APPENDIX

Manufacturing and
Production of manufacturing and production of IT decision makers in
manufacturing and production
70% 89
organizations are ahead of their
% 70
anticipated digital transformation% 89 % think that data silos are creating
challenges for their organization.
progress.
organization.

83% 88% 40 % 88% 40 %

$7.2
ITDMs in manufacturing and production say
their organization could lose an average of

53
million
38
$7.2 million if digital transformation initiatives

70%
%89 %
% 53%%
70 38%%
89
aren’t successfully completed.

70% 89 % 70% 89 %
of IT decision makers in
The average number of projects
88% 40
manufacturing and production
% 88 %
predict an increase in their IT budget
40 % IT is being asked to deliver has
increased by 40%.
88% 40 %
in the coming year.
88% 40 %

83% of ITDMs in manufacturing and production 53 % 38%

of respondents successfully
53 % 38% APIs and API-related
anticipate an increase to their IT staff headcount 53 % 38
delivered % 53
all the projects asked % 38% implementations generated 38%
of revenue for manufacturing and
over the next 12 months (vs. 78% global average). of them last year.
production organizations.

  49
APPENDIX

Public Sector/
Government of public sector organizations are of IT decision makers in the

74% 93
ahead of their anticipated digital
%
transformation progress. 74 % 93 %
public sector think that data
silos are creating challenges
for their organization.

73% 46 % 73% 46 %

$10.7
ITDMs in the public sector say their
organization could lose an average of

million $10.7 million if digital transformation

44
74%
%40
93 44
74 %
% %%
initiatives aren’t successfully completed.
40%%
93
74% 93 % 74% 93 %
99% of IT decision makers in the public
The average number of projects
73% 46 73
sector predict an increase in their
%
IT budget in the coming year.
% 46 % IT is being asked to deliver has
increased by 46%.
73% 46 % 73% 46 %
Almost all (99%) ITDMs in the public sector 44 % 40% 44 % 40% APIs and API-related
admit that integration challenges hinder digital of respondents successfully

transformation progress (vs. 94% global average). 44 % 40%all the projects asked
delivered 44 % 40% implementations generated
40% of revenue for public
of them last year.
sector organizations.

  50
APPENDIX

Retail and Consumer

Packaged Goods of retail and consumer packaged of IT decision makers in retail

70% 93
goods organizations are ahead
%
of their anticipated digital 70 % 93 %
and consumer packaged goods
think that data silos are creating
transformation progress. challenges for their organization.

49%
86% 41 % 86ITDMs
% 41 and%consumer packaged goods

$6.5
in retail
say their organization could lose an average of

million $6.5 million if digital transformation initiatives

aren’t successfully completed.
70
54%
%93
36 %
% 70
54%% 93
36%%
70% 93 % 70% 93 %
of IT decision makers in retail and
The average number of projects
86% 41 86
consumer packaged goods predict
% %
an increase in their IT budget in the
41 % IT is being asked to deliver has
increased by 41%.
coming year.
86% 41 % 86% 41 %
54 % 36% 54 % 36%
49% of retail and consumer goods organizations of respondents successfully APIs and API-related

are either currently or plan to invest in AI/machine 54 % 36

delivered % 54
all the projects asked % 36% implementations generated 36%
of revenue for retail and consumer
of them last year.
learning (vs. 40% global average). packaged goods organizations.

  51
APPENDIX

Region Profile: United States

of organizations in the U.S. are of IT decision makers in the U.S.

78 % 91
ahead of%
78
their anticipated digital
transformation progress.
% 91% think that data silos are creating
challenges for their organization.

80 % 44% 80 % ITDMs in44 %

$12.9
the U.S. say their organization
could lose an average of $12.9 million

million if digital transformation initiatives aren’t

successfully completed.
56%41 56%
78 %% 41%%
91
78 % 91%
78 % 91% 78 % 91%
of IT decision makers in the U.S. The average number of projects
80 % 44 80 %
predict an%increase in their IT budget 44% IT is being asked to deliver has
in the coming year. increased by 44%.
80 % 44% 80 % 44%

On average, 31% of applications are integrated at 56 % 41 % 56 % 41% APIs and API-related

56% of respondents
56 % 41% delivered all the56 % 41%
implementations generated
organizations in the U.S. (vs. 29% global average). successfully
41% of revenue for
projects asked of them last year.
organizations in the U.S.

  52
APPENDIX

Region Profile:
United Kingdom of organizations in the UK are of IT decision makers in the UK

42 % 89
ahead of%
42
their anticipated digital
transformation progress.
% 89% think that data silos are creating
challenges for their organization.

65 % 34% 65 % 34%

$7.4
ITDMs in the UK say their organization could
lose an average of $7.4 million if digital

million transformation initiatives aren’t successfully

29 28
completed.
% % 29%%
42 28%%
89
42% 89 %

42 % 89% 42 % 89%
of IT decision makers in the UK The average number of projects
65 % 34 65 %
predict an%increase in their IT budget 34% IT is being asked to deliver has
in the coming year. increased by 34%.
65 % 34% 65 % 34%

29 % 28% 29 % 28% APIs and API-related

29% of respondents
67% of customer interactions from UK organizations
29 % 28 29 28%
implementations generated
% delivered all the
successfully % 28% of revenue for
are digital (vs. 72% global average). projects asked of them last year.
organizations in the UK.

  53
APPENDIX

Region Profile: France

of organizations in France are of IT decision makers in France

51 % 88
ahead of%
51
their anticipated digital
transformation progress.
% 88% think that data silos are creating
challenges for their organization.

80 % 40% 80 % 40%

$5.9
ITDMs in France say their organization could
lose an average of $5.9 million if digital

million transformation initiatives aren’t successfully

36 34
completed.
% % 36%%
51 34%%
88
51 % 88%
51 % 88% 51 % 88%
of IT decision makers in France The average number of projects
80 % 40 80 %
predict an%increase in their IT budget 40% IT is being asked to deliver has
in the coming year. increased by 40%.
80 % 40% 80 % 40%
45% of ITDMs in France cite risk management, 36 % 34 % 36 % 34% APIs and API-related
of respondents successfully
compliance, and/or legal implications among the
36 % 34%all the projects asked
36 % 34%
implementations generated
delivered
34% of revenue for
top challenges to digital transformation (vs. 36% of them last year.
organizations in France.
global average).

  54
APPENDIX

Region Profile: Germany

of organizations in Germany are of IT decision makers in Germany

64 % 94
ahead of%
64
their anticipated digital
transformation progress.
% 94% think that data silos are creating
challenges for their organization.

78 % 37% 78 % 37%

$6.4
ITDMs in Germany say their organization
could lose an average of $6.4 million if

million digital transformation initiatives aren’t

36% 37 % 36%% 37%%

successfully completed.

64% 94 % 64 94
51 % 88% 64 % 94%
of IT decision makers in Germany The average number of projects
78 % 37 78 %
predict an%increase in their IT budget 37% IT is being asked to deliver has
in the coming year. increased by 37%.
80 % 40% 78 % 37%
36 % 37% 36 % 37% APIs and API-related
Only 22% of organizations in Germany have of respondents successfully
36 % 34%all the projects asked 37%
implementations generated
delivered projects late (vs. 30% global average).
delivered 36 % 37% of revenue for
of them last year.
organizations in Germany.

  55
APPENDIX

Region Profile: Netherlands

of organizations in the Netherlands of IT decision makers in the

81 % 83
are ahead
81
%of their anticipated digital
transformation progress.
% 83% Netherlands think that data silos
are creating challenges for their
organization.

79 % 47% 79 % 47%

$17
ITDMs in the Netherlands say their
organization could lose an average of

million $17 million if digital transformation

52% 40 % 40%%
initiatives aren’t successfully completed.
52%%
81% 83 % 81 83
81 % 83% 81 % 83%
of IT decision makers in the The average number of projects
79 % 47 79
% predict an increase in%
Netherlands 47% IT is being asked to deliver has
their IT budget in the coming year. increased by 47%.
79 % 47% 79 % 47%
52 % 40% 52 % 40% APIs and API-related
74% of organizations in the Netherlands have of respondents successfully
52 % 40%all the projects asked
delivered 52 % 40%
implementations generated
40% of revenue for
delivered projects late (vs. 68% global average). of them last year.
organizations in the
Netherlands.

  56
APPENDIX

Region Profile: Australia

of organizations in Australia are of IT decision makers in Australia

77 % 93
ahead of%
77
their anticipated digital
transformation progress.
% 93% think that data silos are creating
challenges for their organization.

81 % 44% 81 % 44%

$9.3
ITDMs in Australia say their organization
could lose an average of $9.3 million if

million digital transformation initiatives aren’t

39% 42 % 39%% 42%%

successfully completed.

77% 93 % 77 93
77 % 93% 77 % 93%
of IT decision makers in Australia The average number of projects
81 % 44 81 %
predict an%increase in their IT budget 44% IT is being asked to deliver has
in the coming year. increased by 44%.
81 % 44% 81 % 44%

68% of ITDMs in Australia say their existing IT 39 % 42 % 39 % 42% APIs and API-related
of respondents successfully
infrastructure makes it difficult to make changes to 39 % 42%all the projects asked
delivered 39 % 42%
implementations generated
42% of revenue for
a particular system or application (vs. 54% global of them last year.
organizations in Australia.
average).

  57
APPENDIX

Region Profile: Singapore

of organizations in Singapore are of IT decision makers in

76 % 87
ahead of%
76
their anticipated digital
transformation progress.
% 87% Singapore think that data siloes
are creating challenges for their
organization.

87% 40% 87% 40%

$10.2
ITDMs in Singapore say their organization
could lose an average of $10.2 million

million if digital transformation initiatives aren’t

55%38 55% 38%%

successfully completed.
76% 87 % 76 %% 87
76 % 87% 76 % 87%
of IT decision makers in Singapore The average number of projects
87% 40 87 %
predict an%increase in their IT budget 40% IT is being asked to deliver has
in the coming year. increased by 40%.
87% 40% 87% 40%
55 % 38 % 55 % 38% APIs and API-related
85% of ITDMs in Singapore anticipate an increase of respondents successfully
to their IT staff headcount over the next 12 55 % 38%all the projects asked
delivered 55 % 38%
implementations generated
38% of revenue for
of them last year.
months (vs. 78% global average). organizations in Singapore.

  58
APPENDIX

Region Profile: Hong Kong

of organizations in Hong Kong are of IT decision makers in Hong

77 % 95
ahead of%
77
their anticipated digital
transformation progress.
% 95% Kong think that data silos are
creating challenges for their
organization.

77 % 42% 77 % 42%

$5.3
ITDMs in Hong Kong say their organization
could lose an average of $5.3 million if

million digital transformation initiatives aren’t

63%39 % 63%% 39%%

successfully completed.
77 % 95 % 77 95
77 % 95% 77 % 95%
of IT decision makers in Hong Kong The average number of projects
77 % 42 77 %
predict an%increase in their IT budget 42% IT is being asked to deliver has
in the coming year. increased by 42%.
77 % 42% 77 % 42%
84% of ITDMs in Hong Kong say that one of their
top integration challenges is incorporating data- 63 % 39% 63 % 39% APIs and API-related
of respondents successfully
derived insights into user-facing applications (vs. 63 % 39%all the projects asked
delivered 63 % 39%
implementations generated
39% of revenue for
77% global figure). of them last year.
organizations in Hong Kong.

  59
APPENDIX

Region Profile: Japan

of organizations in Japan are of IT decision makers in Japan

66 % 87
ahead of%
66
their anticipated digital
transformation progress.
% 87% think that data silos are creating
challenges for their organization.

76 % 40% 76 % 40%

$5.5
ITDMs in Japan say their organization
could lose an average of $5.5 million if

million digital transformation initiatives aren’t

59%37 % 59%% 37%%

successfully completed.
66 % 87 % 66 87
66 % 87% 66 % 87%
of IT decision makers in Japan The average number of projects
76 % 40 76 %
predict an%increase in their IT budget 40% IT is being asked to deliver has
in the coming year. increased by 40%.
76 % 40% 76 % 40%
39% of organizations in Japan mandate that all
projects abide by a company-wide API integration 59 % 37% 59 % 37% APIs and API-related
of respondents successfully
strategy (vs. 30% global average). 59 % 37%all the projects asked
delivered 59 % 37%
implementations generated
37% of revenue for
of them last year.
organizations in Japan.

  60
About the Report
MuleSoft’s 8th annual Connectivity Benchmark Report, in
collaboration with Vanson Bourne and Deloitte Digital, was
produced from interviews with 1,050 IT leaders across the globe.

We conducted an online survey between October and November

2022 across the United States, the United Kingdom, France,
Germany, the Netherlands, Australia, Singapore, Hong Kong, and
Japan. We ensured that only suitable participants responded to
the survey by using a rigorous, multi-level screening process.

Respondents are all IT leaders, which are defined as those who

hold a managerial position or above in an IT department. All
respondents work at an enterprise organization in the public or
private sector with at least 1,000 employees.

  61
APPENDIX

Methodology
Connectivity Benchmark Report by the numbers

U.K. (100)

Germany (100)
U.S. (250) Netherlands (100)

France (100) Japan (100)

Hong Kong (100)

Singapore (100)

Australia (100)

  62
APPENDIX

Methodology
Connectivity Benchmark Report by the numbers

Healthcare (including public and

private) and life sciences 220
Financial services and Insurance 144
Communications, Media, and Technology 136
Manufacturing and production 136
Retail & consumer packaged goods 132
Public sector/government (excluding healthcare)
123
Energy, oil/gas, and utilities
53
Construction and property 22
Business and professional services 19
Other
61

  63
APPENDIX

Methodology
Connectivity Benchmark Report by the numbers

143 Departmental or intermediate management

Board member; CXO; Director/SVP; senior

manager of unit; function or department

Owner; co-owner; partner; CEO; MD; most

1050
senior level in the organization

507 respondents
Team or group supervisor

332

68

  64
Salesforce, the global CRM leader, empowers companies of every
size and industry to digitally transform and create a 360° view of their
customers. For more information about Salesforce (NYSE: CRM), visit
salesforce.com.
Any unreleased services or features referenced in this or other press
releases or public statements are not currently available and may not
be delivered on time or at all. Customers who purchase Salesforce
applications should make their purchase decisions based upon
features that are currently available. Salesforce has headquarters in San
Francisco, with offices in Europe and Asia, and trades on the New York
Stock Exchange under the ticker symbol “CRM”.
For more information please visit salesforce.com, or call 1-800-NO-
SOFTWARE.
MULESOFT IS A REGISTERED TRADEMARK OF MULESOFT, INC.,
A SALESFORCE COMPANY. ALL OTHER MARKS ARE THOSE OF
RESPECTIVE OWNERS.