The technologies that underpin the business models of tomorrow are coming of age today. AI is transforming how companies operate, as well as the experiences they can provide. And cloud computing is enabling cutting-edge innovations that are helping companies stay ahead of the curve. But organizations can’t make the most of these rapidly maturing technologies unless they establish the right IT foundation. And the reality is many carry massive technical debt. Enterprises are struggling to integrate next-gen tech into traditional systems that just can’t carry the load—or can’t enable the experiences end users expect.

As enterprises evolve to navigate disruption and accelerate innovation, their technology architecture needs to mature, as well. And that’s why Modernization is essential. In the recently published IBM Institute for Business Value (IBV) report Modernizing applications on hybrid cloud, more than 400 top IT executives across industries in North America were surveyed to understand the obstacles that organizations face and discuss how to overcome these barriers to modernization.

The survey reveals that:

• Modernization is not keeping pace with business needs: 83% of executives say modernizing applications and data is central to the business strategy of their organizations. But only 27% say their organization has modernized many of the necessary workflows including the related applications, data, and systems.
• Cloud transformation demands a modern tech architecture: Four in five organizations are modernizing their processes and applications to accelerate digital transformation.
• Many organizations are just starting their modernization journey: Three in four executives say they still have disparate systems using traditional technologies and tools in their organizations.

These findings show that executives know where their modernization programs need to go and are charting a course to get there—but only a few have really put the wheels in motion. Part of the problem is that leaders aren’t thinking holistically enough. There’s a hyper focus on operational objectives and incremental improvements, rather than the strategic outcomes that will allow them to thrive in the business landscape of today and tomorrow.

What will help enterprises make meaningful progress?

Answering this question starts with understanding the common set of obstacles they face. And what will it take to overcome financial, technical, cultural, and expertise obstacles and propel them forward on their enterprise transformation journey. Download the report to learn how organizations can identify and address the barriers to modernization and make the most of cloud-enabled transformation.