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 practical advice
We see something big happening
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
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.
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%
…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%
Why?
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%
…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.
…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 between
Marketing & IT
Right ROI criteria for
digital investments
Connecting digital to
enterprise KPIs
Alignment: In a programmable world, digital experiences win
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
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
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
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
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
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 conference app
#iloveapis
Conviction, Alignment, Agility: Three Keys to Getting & Staying on the Right Side of the Digital Divide

Conviction, Alignment, Agility: Three Keys to Getting & Staying on the Right Side of the Digital Divide

  • 1.
    Conviction, Alignment, Agility ThreeKeys to Getting and Staying on the Right Side of the Digital Divide
  • 2.
    Apigee Institute’s promise •Equip leaders with empirical data • Connect theory to practice • Turn experience into practical advice
  • 3.
    We see somethingbig happening
  • 4.
    The world isbecoming 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.
    What happens whendigital 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.
    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.
    …and that promisesto 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.
  • 9.
    Digital Leaders areturning 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.
    …into a casefor 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.
    …with the alignment andagility to make it happen
  • 12.
  • 13.
    Blueprint for alignmentand 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.
    Alignment: In aprogrammable world, digital experiences win
  • 15.
    Alignment: Digital experiencesare everybody’s job Digital Leaders Digital Laggards Velocity Velocity Physical Assets Density Depth Digital Assets Physical Assets Digital Assets Density Depth
  • 16.
    Agility: Three ROIcriteria, 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.
    Case study #1 “…Allteams 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.
    Agility: Aligning investmentcriteria 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.
    In a programmableworld, 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.
  • 21.
  • 22.
    We would loveyour feedback! Don’t forget to fill out the session’s survey – found in the session details on the conference app #iloveapis

Editor's Notes

  • #2 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.
  • #5 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
  • #8 Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.
  • #10 Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.
  • #11 Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.