The document discusses how every company has become a software company due to digital transformation. It provides examples of companies like Ford, Dreamworks, and Fedex that have transformed their traditional businesses into technology hubs by embracing innovation. These companies build and own sophisticated software that drives key functions and creates new revenue streams. The document advocates that enterprises must undergo an organizational transformation to develop internal technological capabilities and build strategic partnerships to facilitate digital transformation and become software product companies.

1. “Every company is a
software company”
Agility, Innovation

2. ISVs – software is their business
Enterprises – use software to run their businesses
Is this a valid differentiation in today's world?
Artificial Silos
If it is not, what does it mean to either in terms of
competencies and/or business models?

3. Ford – sells computers on wheels
DreamWorks – technology company in the business
of animation
Fedex – a logistics company that runs a software
company inside Fedex
Consider today's Business landscape
Xerox – a photocopying company that is into
document management and workflow solutions

4. “Growing up, I used to worry about making and selling
more cars; but now I worry, what if we only made cars?
Just making cars is not our future”
– Bill Ford, Executive Chairman, Ford Motor Co.

5. “Innovation in the auto industry increasingly involves
software and electronics. The standard estimate is that 60
percent of vehicle innovation is now software and
electronics, but we tend to believe it is even higher than
that” Patrick Milligan, Ford’s senior manager for vehicle solutions

6. It is estimated that there are 10 million lines of
code in Ford 2010 vehicles!!!

7. Innovation at work - Ford’s future is driven by
Connectivity
Mobility
Ford’s “Smart Mobility”
Customer Experience
Autonomous Vehicles
Big Data and Analytics

8. These technology drivers are not unique to Ford
and are equally applicable for any enterprise
that aspires to transform its business and handle
digital revolution

9. What’s driving these diverse companies ?
Ford – every automobile it builds has sophisticated electronics
with advanced logic and real-time computing power that
monitor and drive every component in the vehicle
DreamWorks – uses latest technology to transform animation
into a “manufacturing line”
Fedex – hundreds of developers build various products that
generate and use data on every package it ships in real-time
Xerox – transformed itself into a full-fledged computer services
company

10. Mature competencies in technology, specifically
computing and software are at the heart of these
businesses
Software IP is driving innovation across these companies
Even though they are not ISVs, they build, own, and
support software (IP)
They have transformed their traditional businesses into
cutting edge technology hubs embracing agility and
innovation

11. SMAC, Big Data, AI, IOT, and robotics – are transforming how
traditional businesses function
People, technology, and processes both internal and external
getting transformed
Disruptive Innovation is the order of the day
Technology innovation is creating new business models and
generating new revenue streams

12. Enterprise IT will also change the face of ISVs
IOT is changing the face of manufacturing
Digital Transformation and Innovation Strategy are
key business drivers
Enterprises will generate terra bytes of data, which can be used by
them to create new applications, service lines and revenue streams
in a proprietary manner

13. New Business Models and new revenue streams
GE – outfitting industrial machinery with sensors – generates real-time
data leading to a new business line offering predictive maintenance
plans
Xerox Workflow solutions – serving the BPO domain; new business
and revenue stream
Fedex SenseAware – in package sensing device, service to
healthcare and life sciences companies

14. Ability to deal with technology and software in a
sophisticated manner is at the heart of all the
enterprises that have handled the challenges
associated with digital revolution and
successfully transformed their businesses

15. Failure to embrace innovation has a very high
cost - Kodak is a great example of an iconic
company failing due to its inability to adapt

16. You don’t have to be a startup to embrace
innovation, as giants like Ford, Disney, and
Xerox have proven

17. To successfully navigate the challenges of the
digital revolution, every company has to embrace
innovation, and transform itself into a software
company

18. Can every company become a software
company and build IP?

19. Companies need help in transforming “Enterprise
IT” into IP building factories

20. Are enterprises equipped to transform into “IP
building factories” on their own?

21. Digital Transformation
challenges for enterprises

22. Companies will have to undergo a fundamental business
transformation
Companies must embrace an organisational transformation to
embrace risk, innovation and flatten the decision making
processes
How can companies become software IP factories?
“Enterprise IT mindset” must be transformed to a “Product
mindset”
Engage with mature IT service partners to facilitate this
transformation

23. Decouple the management of customer-centric front-end
systems and applications from the management of existing
transaction-oriented back-end systems
Deploy state-of-art digital practices for the front-end,
consumer-facing applications
Adopt 2-speed IT strategy
2-speed IT strategy will enable enterprises to build innovative
products and services capable of delivering great customer
experiences

24. To overcome shortage of right talent in their native countries
Faster scalability, optimized costs, de-risking operations and
access to diverse skilled talent pool
Opt for Distributed software development
Leverage 24x7 development cycles with multi-location, and
multi-time zone facilities
Proximity to emerging, fast growing markets

25. Build the right team
Leverage Agile methods such as Scrum
Keys for Optimized software development with distributed teams
Utilize cloud-based tools
Adapt cutting-edge productivity tools to facilitate seamless
communication, workflow, process, and project management
Continuously measure key metrics, and refine processes

26. What are the best partnership models
that can help enterprise IT transformation?

27. In this era of laser sharp focus on core
competencies, enterprises don’t have to
become IP experts on their own

28. Companies have to build partnerships with
mature service providers to acquire this capacity

29. Agility, speed, flexibility, scalability, and
time-to-market should be the key drivers

30. People outsourcing and/or project outsourcing will not result
in any sustainable transformation
Resources, and processes driven and controlled by the
service provider – low level of integration
Traditional IT Outsourcing is not the answer
Low level of task based reactive output, with little incentive
for innovation
Basic, hands off engagement
Rigid in scope, deliverables dictated and controlled by the
nature of contract

31. For developing IP, enterprises need dedicated teams for
knowledge continuity
Need partners who can extend their capacity
What should an ideal partnership offer to the enterprise?
As the domain experts, enterprises must be in the drivers seat
and not the service providers
Mature and collaborative engagement
Complete flexibility in scope to enable you to react fast to
changing business and technology landscape

32. coMakeIT’s strategic engagement framework offers a mature,
collaborative model
Offers sophisticated capacity extension
Strategic engagement framework - Distributed development with
In-sourcing
Enterprises are in the drivers seat and control the people, process,
and the deliverables
coMakeIT handles all the support infrastructure through its shared
services model, and allows the customer to exclusively focus on
software and product development
Complete flexibility in scope to enable you to react fast and innovate
to changing business and technology landscape