Digital Transformation is a Virus That Business Execs Should Catch
Recent research shows why businesses will want the latest viral strain of digital transformation to spread.
Imagine a brief moment of hysteria. There is a plane at JFK Airport quarantined with more than 100 sick passengers… less than 20 miles from your location. Next, picture a post-apocalyptic world and work through scenarios in which you must find your way to a remote mountain. Luckily, in this case, you didn’t have to pack up any canned goods as it turned out that only 11 passengers were diagnosed with a common respiratory virus.
It's not just zombie-inducing microbes that mutate and spread. Digital transformation (while yes, it's been around for some time), is taking on a new form. Many will say that digital transformation has passed its viral stage—what company isn't a digital business today? Almost every industry has been transformed over the past decade. That's true, but according to a new report, digital transformation is mutating—in a good way!
According to a new report by Frost & Sullivan, business executives are taking a more active role in software development and acquisition. In fact, 28 percent of applications are now developed within a line of business. If you think about how the business acquired applications just a few short years ago, they primarily relied on IT or an external vendor. But there was a problem—one that evolution would soon solve—it was taking too long.
Because the brunt of digital transformation rested on IT's shoulders, they had to deal with the requirements from every line of business, prioritize all the requests and then provide those applications to the business. Applications that were not perfect from day 1 and required additional investment of time and resources, further delaying the release of the next application. Many organizations hadn't even adopted DevOps or Agile methodologies yet, and IT had to deal with legacy systems at the same time—talk about apocalyptic.
Fast forward to today—business executives have the caught the digital bug. According to the Frost & Sullivan report, 85 percent of organizations say that business executives now play a key role in software decisions and eight out of 10 executives recognize that software is fundamental to achieving their KPIs. In addition, new development and delivery practices are making it easier than ever before for business executives to become more involved. And it's producing remarkable results for the business.
According to the study, business executives from organizations that are widely adopting modern application architecture and modern development practices, such as DevOps and Agile, are eight times more likely to say that software is very good at supporting the achievement of their KPIs. In addition, these companies experience two times higher profit growth.
It’s clear that business executives who are leading the digital charge are producing remarkable results for the business. Let's hope this is a strain of digital transformation that continues to spread.