More than 40% of sports organisations don’t have a company-wide technology procurement process, meaning they are likely to be paying for systems they no longer need or which replicate functionality elsewhere and that systems do not integrate, leading to multiple cost and time inefficiencies and increased potential for human error and compliance risk.
This is according to the PTI Sports Leadership Benchmark, which in our view demonstrated that our industry is still relatively immature as regards its understanding of technology. Despite the lack of a joined up approach to technology across almost half of the industry, 36% said they expected to spend £500,000+ and 20% said they were planning to spend more than £1m in the next 12 months
This is not hugely surprising to us as in the course of our work we find most organisations are siloed and technology is procured in the same way. Sport has an uneasy relationship with technology, with very few having Executive-level technology representation and very many seeing technology as a cost-centre, a necessary evil on which the spending the least amount possible tends to be the approach.
At a time when it is harder than ever to raise revenue – our report points to a lack of confidence in the growth prospects of several key sports revenue streams – then it makes sense to explore ways to mitigate the cost base. However it appears that this has not been considered by almost two thirds of our industry: At a time when seemingly every other story is about Artificial Intelligence, it seems incongruous that more executives (45%) were forecasting non-playing staff headcount rises in the next 12 months than could see technology driving efficiencies (40%).
When we talk about digital transformation, the mind usually goes to the potential for generating new revenues but this may take time, require investment and it might feel like there is an element of a leap of faith. However the other side of the coin – an optimised technology stack – will drive cost savings almost immediately, reduce operational costs on an ongoing basis and reduce the risk to the business in the longer-term. It’s as close to a no-brainer as there can be.
What’s stopping us from taking the first step?
You can download the Sports Leadership Benchmark Report free at www.ptidigitalgroup.com
