Report: Manufacturing Execs Expect To Increase Budgets For Digital Initiatives

Aug. 20, 2018
An IFS Study shows a 26% increase in digital transformation readiness in service, manufacturing and energy sectors since 2015.

IFS, a global enterprise applications company, releases a primary research study of 200 North American manufacturing executives, which reveals more than half of respondents expect their budgets for digital transformation to increase in the next two years. The IFS study also reveals that substantial investments have already been made in digital transformation initiatives, leading to a 26% increase since a 2015 study in companies saying their enterprise software did a very good or good job preparing them for digital transformation. Based on the results from the study, IFS believes digital transformation will continue to accelerate in coming years since only 5% of respondents expect their budgets to decrease.

IFS’s results are corroborated by analyst research indicating a groundswell of investment in digital transformation, according to the company. According to a study by IDC, global digital transformation spending will reach $1.7 trillion by 2019, increasing 42% over 2017. According to the 2018 Gartner Digital Business Survey, says IFS, “59% of midsize enterprises (MSEs) intend to pursue their digital ambitions by both optimizing and transforming their business for the digital era.”

“Today, a lot more companies feel they are prepared for digital transformation than they felt a year ago,” IFS CTO, North America, Rick Veague says. “It is not likely that 20% of the market replaced their enterprise systems. Some may have already had projects in place and seen them come to fruition. But a good percentage are now, a year later, more aware of the possibilities.”

The study also sheds light on the type of digital transformation projects respondents have budgeted for. Analytics and mobility projects were the most frequently funded among respondent companies.

For more information, visit: www.ifsworld.com. You can also register to download the report.

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