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Conviction, Alignment, Agility
Three Keys to Getting and Staying on the Right Side
of the Digital Divide
Apigee Institute’s promise
• Equip leaders with empirical data
• Connect theory to practice
• Turn experience into practic...
We see something big happening
The world is becoming programmable
20B

3x

Internet of Things
Wearables
Smart TVs

$20T
13.8%

10B

Tablets

3x

Smartpho...
What happens when digital capabilities diverge?

Digital
Leaders
53%

Digital
Laggards
47%

Average score deploying apps, ...
A “digital divide” that is real now…

“Digital Leaders”
Segmentation on strength now deploying
apps, operating APIs & usin...
…and that promises to grow
Big digital impact next 12 months
+ increasing great deal over next 5 years
Strong
outperformer...
Why?
Digital Leaders are turning conviction…
Extremely
Smart, connected
devices
Relevance of
trend to
competitive
position over...
…into a case for change and plan of action…
Strongly Agree

Compelling
vision
Executive
priority
Project priority

Digital...
…with the alignment
and agility to make it
happen
How?
Blueprint for alignment and agility

Y
• Deploying apps
• Operating APIs
• Using data
analytics

X
•
•
•
•

Alignment betw...
Alignment: In a programmable world, digital experiences win
Alignment: Digital experiences are everybody’s job

Digital Leaders

Digital Laggards

Velocity
Velocity

Physical
Assets
...
Agility: Three ROI criteria, together in the toolbox

Average score on connecting
digital to KPIs

1.25

1.00

Options-bas...
Case study #1
“…All teams will henceforth expose their data and functionality through
service interfaces. All service inte...
Agility: Aligning investment criteria with enterprise KPIs

Digital
ROI
Pattern
Efficiency & time
to market
Market
Leaders...
In a programmable world, this race is on in every sector
Tablets
Smart
phones

Wearable
Electronics
Partner
Integration

K...
http://apigee.com/institute

@apigeeinstitute
Thank you
We would love your feedback!
Don’t forget to fill out the session’s
survey – found in the session details
on the conferenc...
Conviction, Alignment, Agility: Three Keys to Getting & Staying on the Right Side of the Digital Divide
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Conviction, Alignment, Agility: Three Keys to Getting & Staying on the Right Side of the Digital Divide

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Digital transformations are essential to survive and thrive in the contemporary digital economy. But how do you know that you are laying a solid foundation on which to build your digital business? Do you have the right strategy, people, and operations in place to not just withstand, but to adapt and grow with unpredictable future conditions?

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  • Digital transformations are essential to survive and thrive in the contemporary digital economy. But how do you know that you are laying a solid foundation on which to build your digital business? Do you have the right strategy, people, and operations in place to not just withstand, but to adapt and grow with unpredictable future conditions? In this session, hear the real world findings from the Apigee Institute onwhy the digital divide is rapidly growing and how leading enterprises have the conviction, alignment, and agility required to be the dominant players of tomorrow.
  • According to research !rm IDC, the size of total worldwide e-commerce, when global business-to-business and consumer transactions are added together, will equate to $16 trillion in 2013. When added to the global market for digital products and services—which IDate, the French technology research !rm, estimates at $4.4 trillion in 2013—the total size of digital economy is estimated at $20.4 trillion, equivalent to roughly 13.8% of all sales #owing through the world economy. Given the magnitude of these numbers, it is clear that the digital economy is coming of agehttp://www.corp.att.com/emea/docs/the_new_digital_economy.pdf
  • Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.
  • Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.
  • Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.
  • Transcript of "Conviction, Alignment, Agility: Three Keys to Getting & Staying on the Right Side of the Digital Divide"

    1. 1. Conviction, Alignment, Agility Three Keys to Getting and Staying on the Right Side of the Digital Divide
    2. 2. Apigee Institute’s promise • Equip leaders with empirical data • Connect theory to practice • Turn experience into practical advice
    3. 3. We see something big happening
    4. 4. The world is becoming programmable 20B 3x Internet of Things Wearables Smart TVs $20T 13.8% 10B Tablets 3x Smartphones PCs 2018E 2017E 2016E 2015E 2014E 2013E 2012 2011 2010 2009 2008
    5. 5. What happens when digital capabilities diverge? Digital Leaders 53% Digital Laggards 47% Average score deploying apps, using data analytics, and operating APIs today: 24 out of 30 Average score deploying apps, using data analytics, and operating APIs today: 14 out of 30 Survey of executives in 200 large companies across 30 industries, May 2013.
    6. 6. A “digital divide” that is real now… “Digital Leaders” Segmentation on strength now deploying apps, operating APIs & using data analytics Outperformance past 12 months on revenue/margin, satisfaction, share, new products High Confidence in much stronger competitive position over next 5 years Digital Impact on enterprise KPIs that’s big in next 12 months & increasing a lot over 5 years 53% “Digital Laggards” 48% 63% 37% 71% 81% 29% 19%
    7. 7. …and that promises to grow Big digital impact next 12 months + increasing great deal over next 5 years Strong outperformers on this KPI + chose as a top area for digital impact going forward Efficiency & time to market Customer satisfaction Digital Leaders 78% Digital Laggards Digital Leaders Digital Laggards 50% 13% Digital Leaders 64% Revenue Digital Laggards 13%
    8. 8. Why?
    9. 9. Digital Leaders are turning conviction… Extremely Smart, connected devices Relevance of trend to competitive position over next 5 years Instrumentation & data insights Apps & network effects Platform strategy & digital ecosystems Not at all 53% 40% 25% 43% 53% 45% 24% 56% 43% 17% 39% 48% 46% 15% 45% 41%
    10. 10. …into a case for change and plan of action… Strongly Agree Compelling vision Executive priority Project priority Digital Leaders Digital Laggards 6% Digital Leaders Digital Leaders Digital Leaders Digital Laggards 6% 53% 43% 35% Digital Laggards 6% Digital Laggards 3% Strategy for creating value with apps, APIs & analytics 34% Agree 50% 43% 31% 48% 39% 33% 52% 39% Survey of executives in 321 large companies across 26 industries, Sept-Oct2 013.
    11. 11. …with the alignment and agility to make it happen
    12. 12. How?
    13. 13. Blueprint for alignment and agility Y • Deploying apps • Operating APIs • Using data analytics X • • • • Alignment between Marketing & IT Right ROI criteria for digital investments Connecting digital to enterprise KPIs
    14. 14. Alignment: In a programmable world, digital experiences win
    15. 15. Alignment: Digital experiences are everybody’s job Digital Leaders Digital Laggards Velocity Velocity Physical Assets Density Depth Digital Assets Physical Assets Digital Assets Density Depth
    16. 16. Agility: Three ROI criteria, together in the toolbox Average score on connecting digital to KPIs 1.25 1.00 Options-based strategy: Real options, Satis faction, Efficie NPV, Satisfac ncy tion, Efficienc y Competitive benchmark Neither Satisfaction nor Effiicency • Certainty impossible • Change inevitable • “Fail or scale” Options-based financials • 0.75 1.00 Average score on digital ROI decision-making 1.25 Quantify what-ifs • 0.75 Project scenarios • "Ad hoc" Build to re-purpose
    17. 17. Case study #1 “…All teams will henceforth expose their data and functionality through service interfaces. All service interfaces, without exception, must be designed from the ground up to be externalizable. That is to say, the team must plan and design to be able to expose the interface to developers in the outside world. No exceptions. Anyone who doesn’t do this will be fired.” Jeff Bezos CEO, Amazon
    18. 18. Agility: Aligning investment criteria with enterprise KPIs Digital ROI Pattern Efficiency & time to market Market Leadership KPI Satisfaction / Share Revenue / Margin % of digital assets externalizable Scale of digital ecosystem % of profit in sector
    19. 19. In a programmable world, this race is on in every sector Tablets Smart phones Wearable Electronics Partner Integration Kiosks Your Digital Assets Open Innovation Connected Cars Smart Sensors Smart Appliances Gaming Consoles
    20. 20. http://apigee.com/institute @apigeeinstitute
    21. 21. Thank you
    22. 22. We would love your feedback! Don’t forget to fill out the session’s survey – found in the session details on the conference app #iloveapis
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