Business units are now the major drivers behind technology spend in Australia and New Zealand, causing business-wide integration challenges at unprecedented levels, an IBRS study has found.\nThe2019 State of Enterprise Softwarereport, commissioned by TechnologyOne, found that 68 per cent of organisations plan to spend a considerable amount on overhauling their ageing enterprise solutions in 2019-2020 to take advantage of new technologies. However the drivers for that spend will be finance, human resources, customer service and operations \u2013 with IT pushed to the line.\nTechnologyOne\u2019s CEO Ed Chung said IT departments need to reinvent \u201cthemselves as a strategic, value-adding function\u201d, which will empower line of business departments to drive transformation in line with an organisation\u2019s integration strategy.\n\u201cIf outdated technology or resistant-to-change IT teams are standing in the way of a department\u2019s digital transformation aspirations, they will go around them,\u201d said Chung.\n\u201cGone are the days when IT could take months, possibly years to gather requirements, plan, select and implement enterprise software, and then expect immediate uptake and employee satisfaction,\u201d said Mr Chung.\nThe five key findings ofThe 2019 State of Enterprise Softwarestudy are:\nThe pendulum swing away from ICT leading technology procurement\nICT must stop being solely focused on operational system uptime and instead focus more on improvement and innovation. If they don\u2019t, business units will work around them. The clearest evidence of change is this study indicating that ICT now sits behind finance, human resources, customer service and operations, when it comes to ICT budget spend. Marketing came in at sixth place after ICT, followed by sales.\n\n\nIntegration is becoming an unseen pitfall of business-led IT\nWhile SaaS has enabled business units to easily acquire and run enterprise-grade business solutions that are specific to their needs, the ease of acquisition and deployment also means that many organisations are now creating silos of information and processes.\n\n\nA tidal wave of new enterprise software solution spend expected in 2019\nMany organisations have held back enterprise solution upgrades or replacements, either adopting a \u2018wait and see\u2019 approach to cloud, or delaying until their existing vendors catch up with technology.\n\n\nSaaS is improving satisfaction with change management and allowing businesses to innovate faster\nOver 40 per cent of executives reported that encouraging staff adoption of enterprise solutions remains a major challenge, while a further 45 per cent indicate it remains a minor challenge. In short, 85 percent of organisations struggle to enhance staff uptake of new processes demanded by enterprise solutions. Interestingly, organisations with a preference for SaaS reported significantly fewer challenges with getting people to adopt cloud services.\n\n\nCloud myths that just won\u2019t die - security, cost and integration\nDespite Australia being a world leader in enterprise cloud adoption, this study unexpectedly revealed that some market segments remain in the grip of cloud myths. While most (80 per cent) of those surveyed \u2013 across all industry sectors - believed their organisation\u2019s executives had a passable or higher level of understanding about cloud services.