Are You Ready for Digital Disruption? Ten Lessons in Digital Transformation

AreYouReadyforDigitalDisruption?

10LessonsinDigitalTransformation

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.

Researchshowsthatsomecompaniesseethisasanopportunity.

• CATechnologiesengagedindustryanalystfirmFreeformDynamicstoresearchhowcompaniesaredealingwiththechallengesofbecomingadigitalbusiness.

• TheonlinestudywascompletedinAugust,2015.The1,442respondentsincludedseniorITandbusinessleaders(70%and30%respectively)from16countriesandnineindustrysectors.

Researchshowedaselectgroupofcompaniesarespearheadingthedisruptiveuseoftechnology.

• “DigitalDisrupters”consistentlyusedtechnologytodrivetheirmarketcompetivenessandstreamlinetheirbusiness.

• SegmentingRespondentsbyDigitalEffectivenessIndex

• Marketcompetitivenesscontribution+• Impactonbusinessscorecard• Digitaleffectivenessindex

DigitalDisrupters

DigitalAchievers

Mainstream

LessonsfromtheDigitalDisrupters

• Whatdothesetopperformingorganizationshaveincommon?

Lesson1:Understandthepowerfulroleofsoftwareandapps.

• DigitalDisruptersare3.5timesmorelikelythanmainstreamcompaniestostronglyagreewiththestatement“Weneedtobecomemoreofanapp-centric,software-drivenbusiness”(60%vs 17%).

• Theyare3.8timesmorelikelytostronglyagreewiththestatement“Inadditiontoourcorebusiness,wearealsonowasoftwarecompany”(53%vs 14%).

Lesson2:Focusonmodernsoftwaredevelopmentanddeliverymethods.

• DigitalDisruptersare2.5timesmorelikelytohaveagiledevelopmenttechniquesandmethodologiesinplace(77%to31%)andtohavebroadlyimplementedDevOps (70%to28%).

Lesson3:ExploitAPIsforinternalspeedandefficiency.

• DigitalDisruptersaretwiceaslikelyasmainstreamcompaniestohavetakenamanagedapproachtousingAPIsfor:

• full-functionwebapplications(68%vs 34%)• mobileapps(64%vs 31%)• back-officesystems(67%vs 33%)

Lesson4:ManagetheuseofAPIstoengagethedeveloperecosystem.

• DigitalDisruptersare2.6timesmorelikelythanmainstreamcompaniestohavetakenamanagedapproachtousingAPIstointegratethird-partyservicesintotheirownapps(68%vs 26%).

• Theyare2.8timesmorelikelytoenableexternaldeveloperaccesstotheirsystemsanddataviaAPIs(66%vs 24%).

Lesson5:FocusonsmartermanagementofITinvestmentsto

maximizeROI.• DigitalDisruptersarethreetimesmorelikelythanmainstreamcompaniestostronglyagreethat“wemustgetsmarteratassessingandprioritizinginvestmentstomaximizeROI”(67%vs 22%)

• TheyaretwiceaslikelytohaveputportfoliomanagementinplacetoprioritizeandtrackITprograms(89%vs 45%).

Lesson6:Emphasizeemergingdigitalchannelstothecustomer.

Digital• DigitalDisruptersarealmostthreetimesaslikelyasmainstreamcompaniestoacknowledgethecriticalnessofnewdigitalchannels:

• Mobiletechnology(64%vs 23%)• Socialnetworks(48%vs 17%)• Wearabletechnology(35%vs 12%)• InternetofThings(51%vs 18%)

Lesson7:Explorenewavenuestokeepthevalueflowing.

• DigitalDisruptersare2.5timesmorewillingthanmainstreamcompaniestoexperimentandfailquickly(57%vs 23%).

• Theyare3.5timesmorelikelytostronglyagreewiththeneedtoshiftfromfixedproductcyclestocontinuousinnovation(66%vs 19%).

Lesson8:Usedigitaltodrivecorebusinessefficiencyandeffectiveness.

• DigitalDisruptersaremorelikelythanmainstreamcompaniestohaveanongoingdigitalinitiativeforbusinessoperationsanddelivery(58%vs 37%)orforworkforceefficiencyandeffectiveness(58%vs 38%).

Lesson9:CreateamorecoherentandcollaborativeapproachwithinIT.

• DigitalDisruptersare3.6timesmorelikelythanmainstreamcompaniestohaveimplementedcross-functionalprocesseswithintheITorganization(68%vs 19%)andtohavebrokendownthebarriersbetweenDevandOps(48%vs 14%).

Lesson10:Freeupresourcestofunddigitalinvestments.

• DigitalDisruptersarethreetimesmorelikelythanmainstreamcompaniestostronglyagreethatITmustbestreamlinedtofreeupresourcesfordigitalinvestment(65%vs 22%)andthatbusinessoperationsshouldbestreamlinedaswell(60%vs 19%)

10lessonsfromtheDigitalDisrupters.• Understandthepowerfulroleofsoftwareandapps• Focusonmodernsoftwaredevelopmentanddeliverymethods• ExploitAPIsforinternalspeedandefficiency• ManagetheuseofAPIstoengagethedeveloperecosystem• FocusonsmartermanagementofITinvestmentstomaximizeROI• Emphasizeemergingdigitalchannelstothecustomer• Explorenewavenuestokeepthevalueflowing• Usedigitaltodrivecorebusinessefficiencyandeffectiveness• CreateamorecoherentandcollaborativeapproachwithinIT• Freeupresourcestofunddigitalinvestments

ThePayoff:Ifyouaren’taDigitalDisrupter,youareatriskofbeing

disrupted.• DigitalDisruptershave:• 2xhigher revenuegrowth than themainstream (26%vs11%)

• 2.5xhigher profitgrowth (32%vs13%)• 1.5xmorenew-businessbasedrevenue(37%vs 23%)

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.