Survey finds only 27% of executives see tech fully aligning with business goals

9% of firms have boosted tech spending by more than 20%, according to a new report. (Photo: alice-photo/ Shutterstock)

A recent survey has highlighted a significant discrepancy between technology investments and business alignment. According to the study, although 93% of business executives are increasing their technology spending, only 27% report that these efforts are fully aligned with their business objectives.

The Grant Thornton Digital Transformation Survey collected inputs from more than 550 executives on tech alignment, investment priorities, return on investment (ROI) metrics, and integration challenges. It also includes insights from industry reports and macroeconomic analyses.

The survey reveals diverse trends in technology investment. Approximately 9% of companies are boosting their tech budgets by more than 20%, while 22% are increasing theirs by 11-20%. Meanwhile, 34% are raising their investments by 6-10%, and 28% by 0-5%. A small fraction, about 5%, are scaling back their tech spending.

Companies facing alignment issues often fall into three categories- those using outdated systems; firms discouraged by investments in major upgrades that do not meet business needs; and enterprises that have acquired disconnected systems through mergers and acquisitions.

For these organisations, aligning systems and data is crucial for future success. The survey found that 32% of respondents believe their data needs improvement to support tech initiatives, with only 16% rating their data quality as excellent.

“Business leaders recognise the need to invest in technology to enhance the customer experience, improve operations and drive profitability,” said Grant Thornton technology modernisation services principal Nick Vellani. “But they are competing with their internal technology function’s priorities. These may include infrastructure and application cloud migration, cybersecurity, and data management — all of which are critical to ongoing operations but do not directly align to business priorities.”

ROI remains key focus for companies

Enterprise platforms such as ERPs and CRMs consume 37% of tech budgets, while targeted third-party solutions and custom development account for 28% and 35%, respectively. Despite these investments, system integration challenges persist, with integration issues cited as a top concern by 518 respondents.

ROI remains a key focus, with cost reduction being the most critical metric, followed by increased revenue, customer satisfaction, and system scalability. The report says user adoption and lengthy implementation times are major barriers to success. Companies are also increasingly investing in AI, with generative AI ranking third in planned tech investments, following cybersecurity and CRM/customer interfaces.

The survey also highlights a shift towards usage-based metrics, acknowledging that underutilised tools can impede growth. Efforts are being made to improve training and user engagement to bridge this gap.

Customer experience is becoming a central driver of tech strategy, with firms prioritising CRM interfaces over backend process improvements. Poor system integration, high costs, and inadequate data management are identified as top adoption barriers.

The survey outlines five essential shifts for transforming technology investments into sustainable growth, despite macroeconomic challenges. These shifts include aligning digital transformation with business strategies, leveraging existing technologies, focusing on usage metrics, prioritising customer experience, and ensuring enterprise-wide decision connectivity.

Read more: 91% of middle market firms adopt AI, yet 63% face readiness challenges, survey finds