What if you put a brand-new set of high-performance tires on your car and find out they’re completely misaligned. The ride is rough, your fuel efficiency drops, and worse yet, you’re wearing down your investment before you even hit your destination.
The same goes for technology investments.
Organizations today are racing to modernize, with 93% increasing their tech spending. But only 27% say their technology is fully aligned with their business goals. That’s like upgrading your engine but ignoring the steering wheel, it’s bound to create friction, inefficiency, and missed opportunities.
Where the Money’s Going – And Where It’s Not
According to Grant Thornton’s survey of over 550 executives:
- 37% of tech spending is directed at ERPs and CRMs—foundational platforms meant to streamline business processes.
- 28% is being funneled into third-party point solutions.
- 19% goes to internal custom development.
- 16% is invested in custom builds from third parties.
While the spending is clear, the strategy often isn’t.
Technology teams may focus on crucial infrastructure like cloud migrations and cybersecurity—vital for operations, yes—but they can pull focus from what drives customer value, growth, and differentiation.
Symptoms of Misalignment
Organizations suffering from misaligned investments often show the same telltale signs:
- Relying on outdated systems.
- Buying first, planning later—technology decisions made without business strategy in place.
- Incompatible platforms that don’t speak to each other.
- And perhaps most critically: poor data quality. Just 16% of firms said their data is “excellent.” Without clean, reliable data, even the most sophisticated tools can’t deliver value.
From Spending to Strategy
Smart leaders are now asking: Are we investing in technology to support IT goals – or business goals?
It’s not about how much you spend. It’s about what you spend it on, why, and how well it integrates with the rest of your strategy. If your business priorities aren’t steering your tech roadmap, your digital transformation may be heading off course.
