Open Text Corporation · TSX:OTEX
Open Text — Investor Presentation (September 2024)
32 slides from Open Text's investor presentation, September 2024
Slide 1: MarketPulse Survey for OpenText Digital Friction
MarketPulse Survey for OpenText Digital Friction September 2024 Foundry Research sponsored by OpenText, MarketPulse Survey: Digital Friction, September 2024 Foundry Research 1
Slide 2: Method and Objectives
Method and Objectives Total respondents 100 Collection method Survey goals Online questionnaire Digital friction is defined in this survey as “the unnecessary effort an employee has to exert to use data or technology for work.” Geography U.S. We surveyed IT and business decision-makers at U.S. enter
Slide 3: Respondent Profile
Respondent Profile 3
Slide 4: Company Size by Number of Employees
Company Size by Number of Employees 54% at companies with 5,000 employees or more 26% 21% 19% 15% 11% 8% 1,000 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 19,999 20,000 or more S1: Approximately how many people are employed in your entire organization or enterprise? (Please include al
Slide 5: Job Functions and Titles
Job Functions and Titles Non-IT/Line of Business Management IT/Network 21% Management 54% Executive Management (e.g., CEO President, Owner, Partner) 25% 26% 25% 13% 13% 9% 4% 3% 3% 1% 1% 1% CIO (Chief CTO (Chief CSO, CISO CFO, COO, Chief Other C-level Executive VP, Vice Director Manager Information
Slide 6: Primary Industry
Primary Industry Technology/Computer-related products and services 15% Manufacturing, Production, Distribution (Industrial, High-Tech, Aerospace, Life Sciences) 13% Healthcare/Medical/Pharmaceuticals 9% Transport 9% Financial services (banking, insurance, accounting, tax, etc.) 8% Retail 8% Energy (
Slide 7: Executive Summary
Executive Summary FOUNDRY
Slide 8: Summary of Findings
Summary of Findings • Finding solutions that integrate with existing technology has significantly increased an obstacle to employee engagement and productivity (53% cite this as a top challenge this year compared to 34% in 2023). Respondents also report complex processes and workflows (45%), difficu
Slide 9: Results
Results FOUNDRY
Slide 10: Finding solutions that integrate with existing technology has significantly increased an obstacle
Finding solutions that integrate with existing technology has significantly increased an obstacle to employee engagement and productivity Challenges impacting employee engagement and productivity (Select all that apply) Finding solutions that integrate with existing 53% systems/technology 34% Comple
Slide 11: Non-IT titles are significantly more likely to note difficulty accessing available knowledge
Non-IT titles are significantly more likely to note difficulty accessing available knowledge, information silos, and lack of historical or contextual data as productivity challenges Challenges impacting employee engagement and productivity - 2024 (Select all that apply) Finding solutions that integr
Slide 12: More than four in ten cite increased costs from digital friction
More than four in ten (41%) cite increased costs from “digital friction”, and one-third (34%) note increased frustration while conducting daily work Digital friction is defined as “the unnecessary effort an employee has to exert Impact of “digital friction” on the organization to use data or technol
Slide 13: Importance of reliable access to information to meet business goals
92% Importance of reliable access to information to meet business goals 65% Report reliable access to information is “extremely” important to meeting business goals or that they “can’t survive” without it 27% 8% 0% 0% We can’t survive Extremely important Somewhat important Not very important Not imp
Slide 14: Time spent searching for job-related information in a typical day
Time spent searching for job-related 54% information in a typical day 31% estimate they spend 2 or more hours per 27% day searching for information they need to do their jobs 14% 15% 8% (Average: 2.3 hours) 5% Less than 30 30 minutes to 1 to less than 2 to less than 3 to less than 5 hours or minutes
Slide 15: Just 25% perceive employees as extremely confident they have access to all knowledge
Confidence of employees that they have access to the knowledge they need to perform daily tasks Just 25% perceive employees as extremely confident they have 53% access to all the knowledge needed to perform daily tasks 25% 22% 0% Extremely confident – Somewhat confident – Not very confident – Not at
Slide 16: Frequency of delays or missed deadlines due to technology-related challenges
Frequency of delays or missed deadlines due to technology-related challenges 2024 2023 98% indicate technology-related challenges 47% 59% (e.g., lack of automation, complex workflows, data silos, etc.) have resulted in delays or missed deadlines in their 29% departments 23% 22% 16% Q6: In your estim
Slide 17: Frequency of delays or missed deadlines due to technology-related challenges by role
Frequency of delays or missed deadlines due to technology-related challenges 47% IT/Network management Exec/LOB management 53% of LOB (non-IT) decision-makers report 47% frequent delays due to technology- related challenges 36% 25% 19% 17% Q6: In your estimation, how frequently do delays or missed d
Slide 18: Impact of information silos on employee productivity and operational efficiency
Impact of information silos on employee productivity and operational efficiency 84% indicate information silos have a 45% noticeable impact on employee 39% productivity and operational efficiency 15% Q7: To what extent do information silos impact your organization’s employee productivity and operati
Slide 19: Impact of information silos by role
Impact of information silos on employee productivity and operational efficiency LOB (non-IT) decision-makers are more likely to note a significant impact on employee productivity and operational 56% IT/Network management efficiency due to information silos 48% Exec/LOB management 39% 30% 20% 6% Q7:
Slide 20: Lost business opportunities due to inability to access data in a timely manner
To the best of your knowledge, has your organization ever lost a potential business opportunity due an 66% inability to access data in a timely manner? 66% report their organizations have lost business 66%opportunities due to have report their organizations an inability lost business opportunities d
Slide 21: Organizations consider AI solutions to improve employee experiences and productivity
Does your organization consider AI solutions as a means of improving employee experiences and productivity? 82% of responding organizations consider AI 82% solutions as a means of improving employee experiences and productivity 11% 7% Yes No I’m not sure, but we’d like to explore the possibility 21
Slide 22: Employees have asked for more AI-powered solutions
Have your employees asked for more AI-powered solutions to help them in their daily work? 96% indicate employees have asked for more AI-powered solutions to help them in their daily work 42% 42% 12% 4% Frequently Sometimes Rarely Never 22
Slide 23: Data security and integration are top concerns as AI/GenAI is introduced
Data security and integration with existing systems are top concerns for organizations as they introduce AI/GenAI into daily workflows Concerns about introducing AI/GenAI into daily workflows Data privacy and security 56% Integration with existing systems 45% Inaccurate AI outputs not verified by a
Slide 24: Nearly three quarters are developing an AI strategy or integrating AI
Nearly three quarters (73%) are developing an AI strategy or actively integrating AI technologies into operations Current level of preparation for the integration of AI technologies 42% 31% 15% 6% 6% We have limited awareness or We have some concerns about We are aware of the potential We have a cle
Slide 25: Current technology tools are not fully meeting business needs
Current technology tools are not fully meeting business needs From your perspective, to what extent does your company provide technology tools that: To a great extent To some extent To little extent Not at all Improve service levels, both internal and to customers 42% 40% 16% 2% Improve process effi
Slide 26: Decision-makers would prefer tools that find information quickly and reduce manual work
Decision-makers would prefer technology tools that enable them to find information quickly, reduce manual work, and ensure GenAI delivers relevant output What are the top three capabilities you wish your organization’s technology tools could enable to make your job easier? (Select three) 42% Find in
Slide 27: Operational efficiency and cost reduction are top motivators for technology decisions
Operational efficiency and cost reduction are the top motivators for technology decisions in 2024 From your perspective when your organization makes technology decisions, are these decisions motivated by: [MOST IMPORTANT FACTOR] 34% Increasing operational efficiency 16% 27% (“Increasing employee pro
Slide 28: APPENDIX
APPENDIX 28
Slide 29: Top impacts of digital friction
Lower efficiency, increased costs, decreased employee satisfaction, and increased security risk are top impacts of “digital friction” Impact of “digital friction” on the organization (Select all that apply) Increased costs 41% 43% 97% report Increased frustration while conducting daily work* 34% the
Slide 30: Time spent searching for job-related information in a typical day (2023)
3 hours Time spent searching for job-related information in a typical day 2023 per day 21% 30% 21% 17% is the average amount of time respondents estimate they spend searching for information they need to do their jobs 5% 5% 1% Less than 30 minutes 1 to less 2 to less 3 to less 5 hours or Don’t know
Slide 31: Frequency of delays or missed deadlines due to technology-related challenges (2023)
Frequency of delays or missed deadlines due to technology-related challenges 2023 98% indicate technology-related challenges 59% (e.g., lack of automation, complex workflows, data silos, etc.) have resulted in delays or missed deadlines in their departments (2023) 23% 16% Q6: In your estimation, how
Slide 32: Contact
• Jen Garofalo Contact • Research Director • Email: jen_garofalo@foundryco.com 32 01.25 | 248-000052-002