[Ed. note: this was a guest blog authored by CA Technologies.]
While software may be “eating the world” as Marc Andreessen famously put it, what’s ultimately resulted is an application economy, an environment defined by disruption and innovation. In every industry, it is application innovators that are doing the eating, feasting on the market share previously held by market incumbents.
Emerging players and large tech firms are bringing disruption to every industry, leaving established organizations with a choice: Embark on a digital business transformation and become a market disruptor, or wait to become a victim of disruption.
Service providers also face a similar choice. They can play a role in their customers’ digital business transformation, and position themselves for increasing market share and margins. Or they can stick with the status quo and start losing mindshare and market share to the vendors that do offer digital business transformation services.
Faced with these emerging realities, many service provider leaders fall into one of two camps today. Either they have a vision for innovation and the role they’ll play in the digital economy, or they’re clear on the need to move in this direction, but not exactly how to start.
For executives in either camp, it’s important to recognize that to deliver value in the digital economy, their organizations will need to go through their own digital transformations, and a big part of this will entail change at the operational level. Quite simply, the promise of an innovative business model that fuels customers’ digital business transformation will only be fully realized through a strong operational foundation.