Innovation does not always appear to have the desired consequences. Research by German development firm Software AG shows that companies in several countries are introducing new technology at lightning speed, leading to an ever-increasing amount of chaos that is difficult to resolve.
For the 2024 Situation Report, the researchers spoke to organisations in the United States, the United Kingdom, and Germany. In the process, they identified three types of ‘chaos’: operational chaos, chaos caused by connectivity problems between systems, and chaos due to overlapping IT systems.
Operational mazes
First, operational chaos occurs when the accumulation of processes and systems leads to a ‘maze’ for day-to-day operations. Software AG argues that adopting new systems is necessary for organizations hoping to innovate quickly. However, the practical implementation of this method is not always having the desired effects.
The numbers clearly show what that chaos means. 69 per cent of organizations surveyed face a higher number of disparate applications and systems than two years ago, and 71 per cent think this will increase even more in two years.
Connectivity chaos
A seemingly trickier problem is the second form of chaos that SoftwareAG discovered. ‘Connectivity chaos’ is understood to mean that no clear plan has been put in place to integrate all kinds of new systems. That state of affairs undermines the rationale for innovation: a lack of clear integration prevents apps and systems from being fully utilized.
Dr. Stefan Sigg, Chief Product Officer at Software AG, notes that the company’s customers can overcome these problems. Those who find the right tools to manage change maintain an overview. “But we shouldn’t just talk about ‘managing,'” he believes. Instead, he concludes, we should look at the role of technology in helping companies innovate and grow. Technology should be as transparently implemented as possible, and its deployment should remain clear for both the company’s tech and business sides.
IT chaos
The third form of chaos focuses specifically on IT systems. If these solutions are not deployed in a coordinated manner, there will be overlapping systems. This is not only cluttered but also expensive. Therefore, it is important to have full transparency about technology choices, even within specific parts of the company.
The complexity of the technology infrastructure itself also turns out to be a problem for 80 per cent of those surveyed, meaning coordination is an ongoing challenge. Complex technology appears to cause delays in delivering new services and products for the same percentage.
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