7 Game-Changing Rules for the App Economy

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7 Game-Changing Rules for the Application Economy

Transcript of 7 Game-Changing Rules for the App Economy

7 Game-Changing Rules for the Application 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