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Explain the opportunities and risks created by digital firms
Describe the new challenges and responsibilities for the leaders of both digital and traditional firms
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• Faster Simpler and Cheaper Procurement
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1. A Forrester Consulting
Thought Leadership Paper
Commissioned By Cognizant and IBM
July 2018
Future of Enterprise
Integration
Enterprise Integration Is Critical To Digital
Transformation
3. 1 | Future Of Enterprise Integration
Executive Summary
Whether a firm’s digital priority is touching digital experience, operational
efficiency, product or service innovation, or the complete redefinition of
its ecosystems, integration and associated technologies are everywhere.
The need for these technologies within products, services, and processes,
increasingly complexify integration. At the same time, integration requires
sustainable agility to thrive in a constant stream of digital transformation,
and it requires security that reaches from ecosystem and partner
integration all the way to the enterprise core.
Leaders have learned that siloed legacy systems with one-off integration
will not deliver that type of agility. Cloud-based integration plays a role, but
it’s not enough, either. A modern solution architecture must simplify legacy
renewal, and integration strategy must encompass customers, business
partners, IoT, APIs, analytics, business processes, internal and external
data, SaaS apps, on-premise apps, and much more.
Integration technologies are a critical digital enabler and, accompanied
by the right business design approach, they allow rapid business
reconfiguration to create new business models and new ecosystems while
continually optimizing customer experience and business operations.
In February 2018, Cognizant and IBM commissioned Forrester
Consulting to evaluate the future of integration strategy in the context
of rapidly evolving needs of digital transformation. To explore this topic,
Forrester conducted an online survey with 378 IT and line-of-business
professionals at global enterprises with knowledge of or responsibility
for digital transformation and approach to integration. We found that
traditional integration strategies can’t keep up with the demands of digital
transformation, and a successful integration strategy should encompass
characteristics of digital strategy across multiple dimensions.
KEY FINDINGS
›› Traditional integration strategies fall short. Ninety-three percent
of firms reported challenges with traditional integration strategies,
citing most frequently the inability to process increasing data volumes,
refresh in real time, and connect data silos. Current solutions can’t
keep up with digital transformation initiatives.
›› Successful integration requires more than iPaaS and cloud. The
path to a successfully integrated future is not paved by siloed apps,
processes, and integration technologies. Unifying across these silos
will be detrimental to business performance and agility; and integration
platforms can be used as a stepping stone for modernization.
›› Modernizing integration strategies allows for an array of business
and IT benefits. Successful modernization allows for increased
business agility, quick response to competitive and market changes,
and continual optimization of customer experience. Further, a
modernized approach allows IT to better support business benefits.
Integration allows
rapid business
reconfiguration
to create new
business models
and ecosystems
while continually
optimizing customer
experience and
business operations.
4. Digital Business Requires Digital
Building Blocks
Empowered consumers, hyperadoption, and digital innovation: what do
these things have in common? They all affect the way you do business.
Today’s firms need to deliver wholly new customer and employee
experiences, optimized cross-enterprise processes, new channels to
market, or completely new business models and revenue streams.
1
The
digital landscape is increasingly complexifying, and with it so is your
business ecosystem.
As firms transform to digital, it’s more important than ever they use
integration to deliver configurable building blocks to digital business,
instead of designing integration technically. A modern integration strategy
must include “software assets that digitally encode the design of the
business, like business transactions packaged as APIs; automated,
instrumented, event-based digital processes; multitouchpoint role-based
workspaces; insight-driven digital decisioning to augment human decision
making; and more.”
2
In surveying 378 companies, we found that:
›› Integration is a key element of digital initiatives. Digital is the new
norm, and firms are placing high priority on many digital initiatives, from
modernizing existing legacy apps to investing in new technology (see
Figure 1). Integration is one of the key elements of digital initiatives and
it’s becoming more and more important to enable firms to join platforms.
Digital businesses
win, serve, and
retain customers
by continuously
creating and
exploiting
digital assets to
simultaneously
deliver new sources
of customer value
and increase their
operational agility.
2 | Future Of Enterprise Integration
Base: 378 IT and LoB professionals with knowledge of/responsibility for digital transformation and approach to integration from global
enterprises
Note: Showing combined data for “Priority” and “High priority”
Source: A commissioned study conducted by Forrester Consulting on behalf of Cognizant and IBM, February 2018
“How much of a priority are the following digital initiatives for your company?”
Figure 1
85% Modernizing legacy applications
84% Cloud-based platforms/infrastructure-as-a-service/platform-as-a-service
84% Cloud-based apps/software-as-a-service
79% Using APIs to engage new partners, ecosystems, and developers
78% Mobile apps and customer experience improvement
75% Internet-of-things (IoT) solutions and products
70% Machine learning/artificial intelligence and customer experience improvement
68% Robotic process automation/business process improvement
5. ›› Integration is complexifying. The separation of systems of record
and systems of engagement with different lifecycles or methods
(respectively waterfall versus agile or DevOps) has also added
new constraints for integration solutions, such as integration
governance and continuous integration or continuous development.
So, the complexity is not only on the technical connectivity and
capabilities, but also on the way integration should be delivered
and maintained without compromising integrity and security. Due
to the need to support digital initiatives, integration strategies
today require multiple components, from cloud-based integration
platforms, app integration, data virtualization, to APIs, and much
more (see Figure 2). Digital transformation and integration decision-
makers indicate they include an average of 6.5 components as part
of their integration strategy today.
›› Traditional integration is not strategically aligned. Ninety-three
percent of firms struggle with a traditional integration strategy
because it can’t keep up with these digital business demands and
complexity. It’s important to note that firms don’t have one single
challenge that stands out, but they struggle across the board with
increasing data volumes, refreshing data in real time, connecting
data siloes, and more.
3 | Future Of Enterprise Integration
Figure 2
Base: 378 IT and LoB professionals with knowledge of/responsibility for digital
transformation and approach to integration from global enterprises
Source: A commissioned study conducted by Forrester Consulting on behalf of
Cognizant and IBM, February 2018
An average of 6.5
components are
part of integration
strategies today, further
reinforcing the growing
complexity of
integration.
“Which of the following does your company currently include in its
integration strategy?”
Master data management
Integration tools embedded in SaaS apps
Legacy connectors/specialized tools for legacy
integration and APIs
Traditional B2B integration (e.g., EDI, managed
file transfer)
Data virtualization (i.e., software to create a
single view over multiple data stores)
APIs used internally
APIs used for B2B integration with customers,
partners, and other organizations
Process automation and integration
Cloud-based integration platforms
Application integration
62%
52%
51%
49%
47%
46%
45%
44%
40%
40%
6. And when integration strategy doesn’t support digital innovation, firms
lose: they can’t keep up with customer demands, serve customers in
the time of need, or prevent competitors from winning their customers.
From a business perspective, they lose revenue and are unable to
implement new business models to keep up with digital demands.
These repercussions are serious, and firms are taking steps to avoid
them: 94% are planning to, are currently, or have already modernized
their integration strategy (see Figure 3). They are primarily driven by a
need to improve integration security, drive efficiency and profitability,
and keep up with market changes.
4
Figure 3
Base: 378 IT and LoB professionals with knowledge of/responsibility for digital
transformation and approach to integration from global enterprises
Note: Percentages do not total 100 because of rounding.
Source: A commissioned study conducted by Forrester Consulting on behalf of
Cognizant and IBM, February 2018
94% recognize their
integration strategy
needs to support
digital transformation:
over a third plan to
change it and the
majority are currently
making this change.
“What are your organization’s plans to change its integration strategy to
support digital transformation?”
6%
No plans
10%
Planning to
in the next
few years
24%
Planning
to within
the next
12 months
44%
Currently
making this
change 17%
Already
made this
change
7. Successful Integration Mimics Digital
Strategy
The right integration strategy is foundational to the type of digital
transformation that prepares a firm to adapt and react to an unknown,
unpredictable future of innovation and digital disruption. We found that
80% agree that their company’s vision for digital transformation implies
a degree of business agility and digital disruption, which has led them to
heavily rethink and redesign their future integration strategy. So, what does
successful integration look like? It should inherit the characteristics of digital
strategy and help across multiple dimensions, like security, data insights,
and business agility. The consequence is a modern integration strategy that
mandates consistency across the organization, better platforms and security,
and expert support. Almost all firms in this study have taken these steps to
modernize their integration strategy (see Figure 4).
Future integration strategies will require many elements to enable digital
initiatives, not simply technologies like iPaaS and cloud integration, or
the belief that API management will solve all needs. Integration is highly
complex so the notion that we can solve the problem of siloed apps and
processes with siloed integration technologies does not stand. Firms must
create a strategy around business design--an approach to integration that
centers first on sustainable business outcomes and agility, unifying across
application silos rather than merely making it easier to live with them. Using
“digital business design” principles, firms can connect integration strategy
directly to the current and future success of their business.
Figure 4
Base: 378 IT and LoB professionals with knowledge of/responsibility for digital
transformation and approach to integration from global enterprises
Source: A commissioned study conducted by Forrester Consulting on behalf of
Cognizant and IBM, February 2018
“What steps are you taking/have you taken to modernize your
integration strategy?” 99% of companies
are taking action to
modernize their
strategy.
53% Driving greater cooperation and consistency across the enterprise
on integration strategy
49% Investing in integration platforms and architectures
48% Increasing security investments for managing risks of digital
innovation
46% Creating new visions and architectures for a comprehensive
approach to integration and digital transformation
47% Partnering with consultants and systems integrators with
integration competency and expertise
5 | Future Of Enterprise Integration
8. USE INTEGRATION PLATFORMS AS A STEPPING STONE TO
MODERNIZATION
With the future of integration rapidly complexifying, firms need an
integration platform that connects processes, data, and transactions
across separately built applications. Firms place high importance on
many capabilities in an integration platform, further reinforcing the
theme of complexifying integration. At the top of the list, we see secure
communication channels, scalability, rich integration features and function,
and ability to customize based on needs (see Figure 5). Among the
capabilities valued in an integration platform, 87% place high importance
on ongoing support, yet another indicator of the complexity of integration
and the need for expert help. It’s important to note that the complexity is
not coming only from the technical requirements and their evolution. The
list of non-functional requirements, all rated as highly important by firms in
this study, is simply too much to be covered by a single platform or vendor.
Forrester defines digital business design as “A business-centered approach
to solution architecture, implementation, and integration that brings business
and technology design together by placing design priority on user roles,
business transactions, processes, canonical information, events, and other
business aspects that embody a complete definition of a business.”
6 | Future Of Enterprise Integration
Figure 5
Base: 378 IT and LoB professionals with knowledge of/responsibility for digital
transformation and approach to integration from global enterprises
Note: Showing combined data for “Important” and “Very important”
Source: A commissioned study conducted by Forrester Consulting on behalf of
Cognizant and IBM, February 2018
“How important are the following capabilities in an integration
platform?”
87% Ongoing
support
The high importance
placed on ongoing
support is another
indicator of the
complexity of
integration and the
need for expert help.
Cloud-based platforms
Rich correction features
Dynamic and configurable
dashboards
Ability for business to create
advanced flows
Rich integration features/functions
Ability to customize platform
Reliability of flow execution
and processing
Strong features for creating APIs
Secure communication channels
Scalability
91%
89%
88%
88%
87%
85%
85%
85%
84%
84%
9. And if companies cannot maintain the level of skills or competencies
internally, the solution can be in favor of managed services that serves
more as a partner rather than a simple provider. Then firms can expect
to see benefits from modernizing integration and the way to source
it (see Figure 6). From a business perspective, 98% expect business
benefits, including:
›› Increased business agility, response to market changes, and ability to
react to unknown, unpredictable disruption
›› Quickly create new business models and improve business insights
›› Continually optimize customer or employee experience
›› Quickly improve organizational structures, business processes,
operational efficiency, and profitability
IT benefits are also common for 98% of firms, including:
›› Quickly reconfiguring solutions to support improved business
processes and easily make business changes
›› Link integration to business outcomes
98% expect business and IT benefits as a result
of modernizing their integration strategy to
support digital transformation
7
10. 8 | Future Of Enterprise Integration
Figure 6
BUSINESS BENEFITS
Modernizing integration strategy to support digital transformation has business benefits.
81%
Increase
business
agility
79%
Quickly respond to
competitive and
market changes
78%
Continually
optimize
customer
experience
78%
Improve
business
control
79%
Quickly
create new
business models
IT BENEFITS
Modernizing integration strategy to support digital transformation has IT benefits.
Base: 378 IT and LoB professionals with knowledge of/responsibility for digital transformation and approach to integration from global enterprises
Note: Showing combined data for “Significant impact” and “High impact”
Source: A commissioned study conducted by Forrester Consulting on behalf of Cognizant and IBM, February 2018
79%
Quickly reconfigure
solutions to
support improved
business process
77%
Create
role-based
workspaces with
a cohesive
user experience
75%
Easily make
a single
business change
75%
Provide open, secure
access for business
transactions and
queies for any process,
user role, business
partner, or customer
76%
Easily create the
specific views of
information that
business users and
processes need
11. Key Recommendations
Whether considering a digital transformation or having already completed
it, companies must recognize the strategic role of integration technologies
as central to their next products and services. Forrester’s in-depth survey
of IT and line of business professionals about integration yielded several
important recommendations:
Clarify the strategic role (or not) of integration technologies in your
business. Write an integration strategy document clearly identifying
changes and challenges like increase in complexity and security. Promote a
large reading outside the IT team, in particular to the business, to co-build
the right integration as a product or service differentiator.
Overcome the complexity through guidelines. The number of integration
patterns is dramatically increasing with the multiple integration scenarios
like IoT, hybrid integration and cloud-based iPaaS platforms, systems
of engagement applications, and the need for more agility. Guide your
developers and architects through varying combinations of integration
possibilities while still managing security and integrity.
Outsource integration skills/competencies the right way. Integration is
complex and continuously evolving. Maintaining the necessary skills and
competencies internally is challenging for large enterprises and even more
difficult for midsize firms. If your integration is becoming strategic and you
have difficulty hiring and sourcing competencies, it’s time to move beyond
simple outsourcing or hosted services and consider strategic partnerships
like integration concierge, integration as a service, or managed service to
maintain successful integration over time.
Adapt Integration governance to allow self-service and support Agile
projects. Centralized governance—the rule that enforces reuse in systems
of record integration (typically using SOA and ESB)—does not allow the
agility to support systems of engagement nor the demand for self-service
integration. Adapt governance by project to control risks while involving
citizen integrators in the line of business. Data analysts, data scientists,
data stewards, process owners, and quality operators are some potential
personas required by simplified integration tools like iPaaS .
9 | Future Of Enterprise Integration
12. Appendix A: Methodology
In this study, Forrester conducted an online survey of 378 cross-
industry organizations in US, Canada, UK, France Germany,
Netherlands/Holland, Spain, Australia, China, and India to evaluate
their integrations strategies. Survey participants included decision
makers in IT, digital business strategy, Marketing, and Sales. Questions
provided to the participants asked about current integration strategies,
challenges with legacy integration, and plans to improve. Respondents
were offered incentives as a thank you for time spent on the survey. The
study began and was completed in February 2018.
Appendix B: Demographics/Data
10 | Future Of Enterprise Integration
RESPONDENT DEMOGRAPHICS
8%Media and leisure
9%Telecommunications services
9%Consumer packaged goods
10%Travel and hospitality
10%Manufacturing and materials
13%Healthcare/life sciences
13%Insurance
14%Financial services and banking
14%Retail
IndustryRegions
29%Over $5 million
35%$3 million to $4.9 million
35%$2 million to $2.9 million
“Using your best estimate, what is your organization’s
annual integration budget (i.e., license, support,
integration buildout, center of excellence, etc.)?”
54%
NA
31%
EMEA
15%
APAC
Countries included: US, Canada, UK, France, Germany,
Netherlands/Holland, Spain, Australia, India, China
47%
$1B to $5B
19%
> $5B
30%
$500M to $1B
1%
$100M to $299M
3%
$300M to $499M
13. 11 | Future Of Enterprise Integration
Respondent level
“Which of the following best describes the work you are directly
involved in?”
“Which of the following best describes
your current department or function?”
13%
C-level
executive
23%
Vice
president
28%
Director
26%
Manager
7%
Sales
8%
Marketing
24%
Digital
business
strategy
60%
IT
8%
Technical
lead
22%
Application
development/
delivery
19%
Software
development
39%
IT
architecture/
enterprise
architecture
12%
Integration
and/or API
architecture
and strategy
7%
Integration
and/or API
delivery and
implementation
2%
Architecture
lead
Base: 378 IT and LoB professionals with knowledge of/responsibility for digital transformation and approach to integration from global
enterprises
Note: Percentages may not total 100 because of rounding.
Source: A commissioned study conducted by Forrester Consulting on behalf of Cognizant and IBM, February 2018
Appendix C: Supplemental Material
RELATED FORRESTER RESEARCH
https://www.forrester.com/report/A%20Developers%20Guide%20To%20Forresters%20Strategies%20
For%20Integration%20And%20Digital%20Business%20Platforms/-/E-RES137952
https://www.forrester.com/report/The+Age+Of+The+Customer+Is+Shaking+Up+Integration+Technologies+An
d+Practices/-/E-RES115617
https://www.forrester.com/report/Digital+Business+Design+Is+The+New+Integration/-/E-RES83641?objectid
=RES83641#reference1
https://www.forrester.com/report/The+Integration+Imperative+Of+Digital+Experiences/-/E-RES119667
Appendix D: Endnotes
1
https://www.forrester.com/report/A%20Developers%20Guide%20To%20Forresters%20Strategies%20
For%20Integration%20And%20Digital%20Business%20Platforms/-/E-RES137952
2
https://www.forrester.com/report/Digital+Business+Design+Is+The+New+Integration/-/E-RES83641?objectid
=RES83641#reference1