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

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Every company is at risk of digital disruption. A new Digital Transformation survey by Freeform Dynamics, commissioned by CA technologies, reveals that the most successful “digital disrupters” have 2x higher revenue growth and 2.5x higher profit growth than their mainstream counterparts.

More significantly, they exhibit many common traits and behaviors. This presentation reveals the Top 10 Traits of the Digital Disputers, and what you can learn from them as you evolve your overall IT and digital transformation strategies.

Published in: Technology
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Are You Ready for Digital Disruption? Ten Lessons in Digital Transformation

  1. 1. Are You Ready for Digital Disruption? 10 Lessons in Digital Transformation
  2. 2. Every company is at risk of digital disruption The brick-and-mortar video store gave way to the Netflix “red envelope” DVD service, which gave way to Netflix streaming, and to an explosion of other streaming services, from Hulu, Amazon, and others. If you don’t think your own business is at risk from digital disruption, you’re wrong.
  3. 3. Research shows that some companies see this as an opportunity. • CA Technologies engaged industry analyst firm Freeform Dynamics to research how companies are dealing with the challenges of becoming a digital business. • The online study was completed in August, 2015. The 1,442 respondents included senior IT and business leaders (70% and 30% respectively) from 16 countries and nine industry sectors.
  4. 4. Research showed a select group of companies are spearheading the disruptive use of technology. • “Digital Disrupters” consistently used technology to drive their market competiveness and streamline their business. • Segmenting Respondents by Digital Effectiveness Index • Market competitiveness contribution + • Impact on business scorecard • Digital effectiveness index Digital Disrupters Digital Achievers Mainstream
  5. 5. Lessons from the Digital Disrupters • What do these top performing organizations have in common?
  6. 6. Lesson 1: Understand the powerful role of software and apps. • Digital Disrupters are 3.5 times more likely than mainstream companies to strongly agree with the statement “We need to become more of an app-centric, software-driven business” (60% vs 17%). • They are 3.8 times more likely to strongly agree with the statement “In addition to our core business, we are also now a software company” (53% vs 14%).
  7. 7. Lesson 2: Focus on modern software development and delivery methods. • Digital Disrupters are 2.5 times more likely to have agile development techniques and methodologies in place (77% to 31%) and to have broadly implemented DevOps (70% to 28%).
  8. 8. Lesson 3: Exploit APIs for internal speed and efficiency. • Digital Disrupters are twice as likely as mainstream companies to have taken a managed approach to using APIs for: • full-function web applications (68% vs 34%) • mobile apps (64% vs 31%) • back-office systems (67% vs 33%)
  9. 9. Lesson 4: Manage the use of APIs to engage the developer ecosystem. • Digital Disrupters are 2.6 times more likely than mainstream companies to have taken a managed approach to using APIs to integrate third-party services into their own apps (68% vs 26%). • They are 2.8 times more likely to enable external developer access to their systems and data via APIs (66% vs 24%).
  10. 10. Lesson 5: Focus on smarter management of IT investments to maximize ROI. • Digital Disrupters are three times more likely than mainstream companies to strongly agree that “we must get smarter at assessing and prioritizing investments to maximize ROI” (67% vs 22%) • They are twice as likely to have put portfolio management in place to prioritize and track IT programs (89% vs 45%).
  11. 11. Lesson 6: Emphasize emerging digital channels to the customer. Digital • Digital Disrupters are almost three times as likely as mainstream companies to acknowledge the criticalness of new digital channels: • Mobile technology (64% vs 23%) • Social networks (48% vs 17%) • Wearable technology (35% vs 12%) • Internet of Things (51% vs 18%)
  12. 12. Lesson 7: Explore new avenues to keep the value flowing. • Digital Disrupters are 2.5 times more willing than mainstream companies to experiment and fail quickly (57% vs 23%). • They are 3.5 times more likely to strongly agree with the need to shift from fixed product cycles to continuous innovation (66% vs 19%).
  13. 13. Lesson 8: Use digital to drive core business efficiency and effectiveness. • Digital Disrupters are more likely than mainstream companies to have an ongoing digital initiative for business operations and delivery (58% vs 37%) or for workforce efficiency and effectiveness (58% vs 38%).
  14. 14. Lesson 9: Create a more coherent and collaborative approach within IT. • Digital Disrupters are 3.6 times more likely than mainstream companies to have implemented cross-functional processes within the IT organization (68% vs 19%) and to have broken down the barriers between Dev and Ops (48% vs 14%).
  15. 15. Lesson 10: Free up resources to fund digital investments. • Digital Disrupters are three times more likely than mainstream companies to strongly agree that IT must be streamlined to free up resources for digital investment (65% vs 22%) and that business operations should be streamlined as well (60% vs 19%)
  16. 16. 10 lessons from the Digital Disrupters. • Understand the powerful role of software and apps • Focus on modern software development and delivery methods • Exploit APIs for internal speed and efficiency • Manage the use of APIs to engage the developer ecosystem • Focus on smarter management of IT investments to maximize ROI • Emphasize emerging digital channels to the customer • Explore new avenues to keep the value flowing • Use digital to drive core business efficiency and effectiveness • Create a more coherent and collaborative approach within IT • Free up resources to fund digital investments
  17. 17. The Payoff: If you aren’t a Digital Disrupter, you are at risk of being disrupted. • Digital Disrupters have: • 2x higher revenue growth than the mainstream (26% vs 11%) • 2.5x higher profit growth (32% vs 13%) • 1.5x more new-business based revenue (37% vs 23%)
  18. 18. Are You Ready for Digital Disruption? • To learn more about this research and find out how your competitors are using digital disruption to transform their businesses, download the research report: Exploiting the Software Advantage: Lessons from Digital Disrupters • Download Now at www.rewrite.ca.com/Disrupters • Facts in this presentation are from the study “Exploiting the Software Advantage: Lessons from Digital Disrupters”, Freeform Dynamics and CA Technologies, August 2015. • Copyright © 2015 CA. All rights reserved. This document is for your informational use only and does not form any type of warranty. The information provided regarding customer examples and survey information are based on the customer’s specific use and experience, so results may vary. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies.

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