As companies transform into software-driven enterprises, bringing high-quality applications to market faster becomes one of the most critical differentiators.
The results of a global study - The Battle for Competitive Advantage in the App Economy - commissioned by CA Technologies reveals the need for speed in the application economy.
In the study, forty three percent of those surveyed believe that becoming a software-driven enterprise is a critical driver of competitive advantage today, rising to 78 per cent in three years.
Increased agility and faster time to market top the list of competitive strategies for companies in the application economy; and, according to respondents who have already begun adopting more advanced software strategies, this transformation is having significant impact on their time to decision: 45 per cent claim this today, and 61 per cent expect it to be the case in the next three years.
“It’s no longer enough for companies to have superior products or services,” says Otto Berkes, Chief Technology Officer, CA Technologies.
“Today, success depends upon delivering a superior customer experience. As companies undergo digital transformation, they must focus on the customer experience since it will be a key differentiator in today's application economy.”
Conducted by Oxford Economics, the study surveyed senior business and technology executives around the globe about application strategy and its impact on business outcomes.
For Berkes, the results show that companies are adapting to the application economy at a “rapid and accelerating pace”, and are rethinking competitive advantage and differentiation in the process.
According to the study, becoming a more software-driven business also has a positive impact on market share (47 per cent), the development of new products and services (42 per cent), and financial performance (36 per cent) - all trends that respondents see accelerating.
Additional key findings include that more than half of respondents (51 per cent) say they have invested in newer forms of software (mobile apps, API-enabled software, etc.) over the past three years, and nearly as many say they will increase their level of investment over the next three years.
Furthermore, 54 per cent are developing new strategies for customer interactions while 49 per cent of respondents are bringing more software development back in-house and 47 per cent have or are planning to use M&A to increase app development capabilities, indicating software’s strategic role.
Despite significant transformation of companies into software-driven enterprises, Berkes believes results from this survey indicate that the biggest changes are still ahead.