New Research Highlights the Role of Digital Core Investments in Driving Growth and Innovation

A new study has revealed that businesses investing in advanced digital core technology experience up to 60% higher revenue growth rates and a 40% increase in profitability. The findings emphasize the importance of strategic innovation and a balanced approach to technical debt, allowing companies to adapt to rapid technological changes, including the rise of generative AI.

As industries undergo continuous reinvention, businesses are increasingly focused on how digital transformation impacts operations. A strong digital core is now considered essential—not just for success, but for survival. Organizations that integrate cloud-first infrastructure, AI-driven insights, optimized operations, and secure digital platforms are better positioned to capture value from emerging technologies and stay ahead of disruption.

Key Insights from the Study

The research, based on a survey of 1,500 technology executives across 19 industries and 10 countries, highlights several critical factors that contribute to a reinvention-ready digital core. These include:

1. Developing an Industry-Specific Digital Core
Companies that tailor their digital core capabilities to industry needs are more likely to achieve sustained innovation. Enhancing one capability, such as data analytics, often leads to improvements in automation, AI integration, and cloud efficiency. Businesses should assess their current digital infrastructure and prioritize investments that drive long-term transformation.

2. Shifting IT Investments Toward Strategic Innovation
The study found that companies need to increase their IT spend on innovation by at least 6% year-over-year to remain competitive. By reallocating resources from operational inefficiencies—such as redundant vendors or suboptimal cloud costs—businesses can redirect capital toward AI-driven automation, new product development, and market expansion. A digital core designed for seamless human-machine interaction enables businesses to unlock greater value through AI-powered workflows.

3. Managing Technical Debt While Investing in Future Growth
Technical debt—the accumulated inefficiencies in IT systems—remains a major challenge for enterprises. The study recommends allocating 15% of IT budgets toward remediating technical debt, striking the right balance between maintaining existing systems and investing in new capabilities. Automated version control, AI-assisted software management, and continuous upgrades are essential to keeping IT infrastructure future-ready while preventing excessive technical debt accumulation.

The Role of AI in Digital Transformation

While AI is often seen as a contributor to technical debt, it also plays a key role in mitigating it. Businesses are leveraging AI to streamline system upgrades, automate compliance, and enhance decision-making. By integrating AI-driven solutions into their digital core, companies can reduce inefficiencies, accelerate innovation, and create a foundation for long-term reinvention.

Looking Ahead: The Path to a Reinvention-Ready Enterprise

The findings make it clear that businesses must continuously evolve their digital capabilities to remain competitive. By investing in cloud-first technologies, AI-powered automation, and next-generation platforms, organizations can future-proof their operations and maximize the value of digital transformation.

As industries navigate an era of rapid technological change, the ability to adapt, innovate, and optimize digital infrastructure will determine which businesses thrive. With the right digital core strategy, enterprises can position themselves for sustained growth, operational resilience, and market leadership in an increasingly AI-driven world.

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