are you ready for digital disruption? ten lessons in digital transformation
TRANSCRIPT
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AreYouReadyforDigitalDisruption?
10LessonsinDigitalTransformation
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Everycompanyisatriskofdigitaldisruption
Thebrick-and-mortar videostore gave way totheNetflix “redenvelope”DVDservice,whichgave way toNetflix streaming,andtoanexplosion ofother streaming services,fromHulu,Amazon,andothers.
If you don’t think your own businessis at riskfromdigital disruption,you’re wrong.
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Researchshowsthatsomecompaniesseethisasanopportunity.
• CATechnologiesengagedindustryanalystfirmFreeformDynamicstoresearchhowcompaniesaredealingwiththechallengesofbecomingadigitalbusiness.
• TheonlinestudywascompletedinAugust,2015.The1,442respondentsincludedseniorITandbusinessleaders(70%and30%respectively)from16countriesandnineindustrysectors.
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Researchshowedaselectgroupofcompaniesarespearheadingthedisruptiveuseoftechnology.
• “DigitalDisrupters”consistentlyusedtechnologytodrivetheirmarketcompetivenessandstreamlinetheirbusiness.
• SegmentingRespondentsbyDigitalEffectivenessIndex
• Marketcompetitivenesscontribution+• Impactonbusinessscorecard• Digitaleffectivenessindex
DigitalDisrupters
DigitalAchievers
Mainstream
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LessonsfromtheDigitalDisrupters
• Whatdothesetopperformingorganizationshaveincommon?
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Lesson1:Understandthepowerfulroleofsoftwareandapps.
• DigitalDisruptersare3.5timesmorelikelythanmainstreamcompaniestostronglyagreewiththestatement“Weneedtobecomemoreofanapp-centric,software-drivenbusiness”(60%vs 17%).
• Theyare3.8timesmorelikelytostronglyagreewiththestatement“Inadditiontoourcorebusiness,wearealsonowasoftwarecompany”(53%vs 14%).
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Lesson2:Focusonmodernsoftwaredevelopmentanddeliverymethods.
• DigitalDisruptersare2.5timesmorelikelytohaveagiledevelopmenttechniquesandmethodologiesinplace(77%to31%)andtohavebroadlyimplementedDevOps (70%to28%).
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Lesson3:ExploitAPIsforinternalspeedandefficiency.
• DigitalDisruptersaretwiceaslikelyasmainstreamcompaniestohavetakenamanagedapproachtousingAPIsfor:
• full-functionwebapplications(68%vs 34%)• mobileapps(64%vs 31%)• back-officesystems(67%vs 33%)
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Lesson4:ManagetheuseofAPIstoengagethedeveloperecosystem.
• DigitalDisruptersare2.6timesmorelikelythanmainstreamcompaniestohavetakenamanagedapproachtousingAPIstointegratethird-partyservicesintotheirownapps(68%vs 26%).
• Theyare2.8timesmorelikelytoenableexternaldeveloperaccesstotheirsystemsanddataviaAPIs(66%vs 24%).
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Lesson5:FocusonsmartermanagementofITinvestmentsto
maximizeROI.• DigitalDisruptersarethreetimesmorelikelythanmainstreamcompaniestostronglyagreethat“wemustgetsmarteratassessingandprioritizinginvestmentstomaximizeROI”(67%vs 22%)
• TheyaretwiceaslikelytohaveputportfoliomanagementinplacetoprioritizeandtrackITprograms(89%vs 45%).
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Lesson6:Emphasizeemergingdigitalchannelstothecustomer.
Digital• DigitalDisruptersarealmostthreetimesaslikelyasmainstreamcompaniestoacknowledgethecriticalnessofnewdigitalchannels:
• Mobiletechnology(64%vs 23%)• Socialnetworks(48%vs 17%)• Wearabletechnology(35%vs 12%)• InternetofThings(51%vs 18%)
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Lesson7:Explorenewavenuestokeepthevalueflowing.
• DigitalDisruptersare2.5timesmorewillingthanmainstreamcompaniestoexperimentandfailquickly(57%vs 23%).
• Theyare3.5timesmorelikelytostronglyagreewiththeneedtoshiftfromfixedproductcyclestocontinuousinnovation(66%vs 19%).
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Lesson8:Usedigitaltodrivecorebusinessefficiencyandeffectiveness.
• DigitalDisruptersaremorelikelythanmainstreamcompaniestohaveanongoingdigitalinitiativeforbusinessoperationsanddelivery(58%vs 37%)orforworkforceefficiencyandeffectiveness(58%vs 38%).
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Lesson9:CreateamorecoherentandcollaborativeapproachwithinIT.
• DigitalDisruptersare3.6timesmorelikelythanmainstreamcompaniestohaveimplementedcross-functionalprocesseswithintheITorganization(68%vs 19%)andtohavebrokendownthebarriersbetweenDevandOps(48%vs 14%).
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Lesson10:Freeupresourcestofunddigitalinvestments.
• DigitalDisruptersarethreetimesmorelikelythanmainstreamcompaniestostronglyagreethatITmustbestreamlinedtofreeupresourcesfordigitalinvestment(65%vs 22%)andthatbusinessoperationsshouldbestreamlinedaswell(60%vs 19%)
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10lessonsfromtheDigitalDisrupters.• Understandthepowerfulroleofsoftwareandapps• Focusonmodernsoftwaredevelopmentanddeliverymethods• ExploitAPIsforinternalspeedandefficiency• ManagetheuseofAPIstoengagethedeveloperecosystem• FocusonsmartermanagementofITinvestmentstomaximizeROI• Emphasizeemergingdigitalchannelstothecustomer• Explorenewavenuestokeepthevalueflowing• Usedigitaltodrivecorebusinessefficiencyandeffectiveness• CreateamorecoherentandcollaborativeapproachwithinIT• Freeupresourcestofunddigitalinvestments
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ThePayoff:Ifyouaren’taDigitalDisrupter,youareatriskofbeing
disrupted.• DigitalDisruptershave:• 2xhigher revenuegrowth than themainstream (26%vs11%)
• 2.5xhigher profitgrowth (32%vs13%)• 1.5xmorenew-businessbasedrevenue(37%vs 23%)
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AreYouReadyforDigitalDisruption?
• Tolearnmoreaboutthisresearchandfindouthowyourcompetitorsareusingdigitaldisruptiontotransformtheirbusinesses,downloadtheresearchreport:ExploitingtheSoftwareAdvantage:LessonsfromDigitalDisrupters
• DownloadNowatwww.rewrite.ca.com/Disrupters
• Factsinthispresentationarefromthestudy“ExploitingtheSoftwareAdvantage:LessonsfromDigitalDisrupters”,FreeformDynamicsandCATechnologies,August2015.
• Copyright©2015CA.Allrightsreserved.Thisdocument isforyour informationaluseonlyanddoesnotformanytypeofwarranty.Theinformationprovidedregardingcustomerexamplesandsurveyinformationarebasedonthecustomer’sspecificuseandexperience,soresultsmayvary.Alltrademarks,tradenames,servicemarksandlogosreferencedhereinbelongtotheirrespectivecompanies.