7 Game-Changing Rules for the App Economy
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Transcript of 7 Game-Changing Rules for the App Economy
In March 2015, CA Technologies commissioned Oxford
Economics to conduct a global survey of senior business
and technology executives about application strategy
and its impact on business outcomes.
Our research shows that for business today,
software is at the center of everything.
78%say becoming more software-driven will be critical to competitive advantage in 3 years.
Here, we offer 7 game-
changing rules for
winning in the
application economy,
based on analysis of our
survey results and real-
world examples from
leading companies.
How best to navigate this dynamic environment?
RULE 1: BE READY TO BREAK THINGS
When organizational change is inevitable, rules may get bent.
And change is happening—fast.
Increased agility/Faster time-to-market is the top method of achieving competitive differentiation in the app economy.
61%say becoming more software-driven will have
an impact on time-to-decision in 3 years.
“It’s happening organically. It’s a sign about how important it is to keep up with the pace of business needs and the changes in the marketplace.”
‒Liz Michaud, director of business applications, Lockheed Martin
At Lockheed Martin, software that speeds up the new business process works so well that leadership wants to make it available across the company—but not everybody is waiting for a directive from the top.
RULE 2: SQUEEZE THE VALUE OUT OF DATA
Companies are proficient at marketing directly to consumers,
but many do not have all the details nailed down.
are highly effective at using data to market directly to customers
are highly effective at using data to track
customer preferences
59% 22%
“Studies show that to avoid injury, if you run 400 to 500
miles in a pair of running shoes, it’s time to buy a new
pair of sneakers.
We’re doing our customers a service by letting them know when that time
comes. We’re using data in a way that’s contextually
relevant, to improve the customer experience.”
‒Robin Thurston, Chief Digital Officer, Under
Armour
RULE 3: LEARN TO LISTEN
Social media tools are not just new ways to push information
out. They are also great ways to capture intelligence.
41%say social media skills are vital to success in the app economy
“The best changes to our mobile banking app have come straight out of the mouths of our customers commenting on social sites.”
‒Senior executive, major European bank
RULE 4: GUARD DATA FIERCELY
Companies are spending more to protect customer data and
to ensure business continuity in the event of trouble.
Methods of managing security of customer data
62%Developing business
continuity plans
61%Increasing frequency of
security assessments
60%Increasing investment in
security tools
56%Establishing proactive plans
for dealing with breaches
49%Increasing investment in
security personnel
“Trust is earned in drops and lost in buckets. We take [security] extremely seriously.”
‒Robin Thurston, Chief Digital Officer, Under Armour
RULE 5: BRING INNOVATION TO COLLABORATION
Old barriers do not apply in the application economy.
Nearly half of respondents say that bringing together security executives with the heads of business units is enabling new business opportunities.
“We will do mockups. We will do proof of concepts
very quickly to get the right direction.
Then we go into a number of sprint cycles where we do the development. At the end of each of those cycles we make sure that we have alignment with the operational business
owners.”
‒Damian Pike, vice president of innovation, DHL
RULE 6: GIVE THE PEOPLE WHAT THEY WANT
In the app economy, customers expect quick, intuitive interaction.
Percentage of respondents who
say more than 20% of revenue is driven by interaction with customers via apps
26%Today
50%In 3 years
Our strategy is to bring platforms together to create a single view of the customer across everything he or she does—we think this is a big differentiator for us. All of the decisions we are making are driven by whether or not it will create a better experience for the customer.”
‒Robin Thurston, Chief Digital Officer, Under Armour
RULE 7: CULTURE EATS STRATEGY FOR LUNCH
Lack of support from within the company is a major obstacle
to better software and app development.
Obstacles in the app economy
43%Difficulty of changing
company strategy
38%Culture will not support it
35%Lack of understanding of benefits by management
“There were quite a lot of people internally that did not want [our retail banking app] to happen. Existing lines of business and profit centers want to protect their margins and keep their business from getting pirated from within.”
‒Senior executive, major European bank
RULE 1: BE READY TO BREAK THINGS
RULE 2: SQUEEZE THE VALUE OUT OF DATA
RULE 3: LEARN TO LISTEN
RULE 4: GUARD DATA FIERCELY
RULE 5: BRING INNOVATION TO COLLABORATION
RULE 6: GIVE THE PEOPLE WHAT THEY WANT
RULE 7: CULTURE EATS STRATEGY FOR LUNCH
7 GAME-CHANGING RULES FOR THE APP ECONOMY
TO LEARN MORE ABOUT STRATEGIES FOR SUCCESS IN THE APPLICATION
ECONOMY, DOWNLOAD THE RESEARCH REPORT,
“THE BATTLE FOR COMPETITIVE ADVANTAGE IN THE APPLICATION ECONOMY.”
There is more to success in the app economy than following
these 7 rules, but they are a good place to start.
A true software-driven enterprise will make substantive and
far-reaching changes and recognize that the rules will
continue to evolve.
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.
All data and quotes are from the Global Application Economy study, Oxford Economics and CA Technologies, June 2015