Software AG Report: 70% of Businesses Struggling with Operational Chaos Due to Technology and Process Challenges

Software AG Report: 70% of Businesses Struggling with Operational Chaos Due to Technology and Process Challenges

(IN BRIEF) Software AG’s research reveals that 70% of businesses are struggling with operational chaos, a challenge fueled by technology and process inefficiencies. The study highlights that as technology adoption increases, businesses are facing greater difficulty in maintaining agility and productivity, with 77% of companies noting the added strain. Operational chaos is manifesting in slower decision-making, delayed product launches, and disruptions in customer service. The report further shows that many companies are hindered by technical debt and the rise of shadow IT and AI. The findings suggest that organizations must modernize their technology and processes to address these issues and enable long-term success.

(PRESS RELEASE) DARMSTADT, 17-Jan-2025 — /EuropaWire/ — Software AG, a Software GmbH brand, has published new research highlighting the widespread challenge of operational chaos affecting businesses across the globe. According to the findings, 70% of organizations admit to experiencing operational chaos, which arises from technology and process-related issues. The research reveals that as businesses adopt more technology, they increasingly struggle with agility and productivity, with 77% of companies reporting these challenges. Additionally, two-thirds of businesses have encountered rising technical debt, leading to more reactive work and fewer opportunities for strategic advancement.

The study identifies several consequences of operational chaos, including slower decision-making (75%), delayed product and service launches (80%), and disruptions to customer service (78%). Moreover, with several major regulations coming into effect this year, 70% of businesses are finding it more difficult to maintain governance and compliance due to operational chaos. This issue is further compounded by the increasing prevalence of shadow IT, which 73% of organizations acknowledge as a problem, and shadow AI, which 50% of knowledge workers admit to using despite 37% of businesses not believing it exists within their organization.

Steve Ponting, Director at Software AG, commented on the findings, emphasizing that businesses must address both their technological and process challenges to build transparency and enable long-term strategic thinking. He noted that the rapid emergence of new technologies could inadvertently contribute to operational chaos if not carefully managed. According to Ponting, companies should focus on modernizing their systems and processes to overcome these barriers and gain the insights needed for long-term success.

The Software AG Reality Check 2025 white paper offers insights into how organizations can address operational chaos, modernize their technology, and streamline their processes to regain control and improve efficiency. The full findings can be explored in the report.

About Software AG
Software AG is a Software GmbH brand that helps companies to manage and optimize their operations and technology with products that simplify complexity, increase transparency and prepare organizations for change.

Trusted by the world’s best brands for more than 50 years, Software AG’s AI-enabled process intelligence, application development and high-performance database solutions are used by banks, retailers, manufacturers, governments and more.

Software AG is owned by Silver Lake, the global technology investment firm. For more information, visit www.softwareag.com, and follow on LinkedIn.

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email: press@softwareag.com

SOURCE: Software AG