16. Five best practices for digital
business success
Bryan Kirschner
@apigeeinstitute
@bryan_kirschner
institute@apigee.com
http://apigee.com/institute
17. Five best practices for digital
business success
Bryan Kirschner
@apigeeinstitute
@bryan_kirschner
institute@apigee.com
http://apigee.com/institute
7
24. http://apigee.com/institute 24
In the past, every great business
had to be great at creating value
with resources
Now every great business must
be great at creating value with
digital resources
25. http://apigee.com/institute
The new Digital Shadow: 45% CAGR for devices & data
25
2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E
PC Phone/Tablet IOT/Wearables Data (GB)
Ratio of 1 device + 1 GB of data per human worldwide
Source: Apigee Institute analysis of multiple data sources including IDC, World Bank, United Nations, and BI Intelligence
Index
Figure scaled
to 1:1
26. http://apigee.com/institute
Digital Leaders are outperforming Digital Laggards
26
New Products
& Services
Market
Share
Gross
Revenue
Customer
Satisfaction
Leaders: top 2 quartiles on Apps, APIs &
Data Analytics
Outperformed a lot Outperformed a little
Laggards: bottom 2 quartiles on Apps, APIs &
Data Analytics
Outperformed a lot Outperformed a little
Comparison of company's performance to others in the sector over last 12 months
Margin
31
10
24
13
37
15
28
12
23
11
73
43
72
49
79
55
74
50
67
46
0
25
50
75
100
Percentage
Source: Three Apigee Institute Surveys of business and IT decision makers at companies with over $500M in annual revenue; total n = 1,321
28. http://apigee.com/institute 28
Digital LeadersDigital Laggards
Market
Leaders
Market
Laggards
1. Embrace change as critical
3. Appoint digital leader
4. “Outside-in” IT
5. Strategic external resources
3x
5x
3x
4x
4x
6x
6x
13x
Raising the odds of success: empirical patterns
31%
34%
15%
19%
11%
2. Declare digital transformation 4x 4x
Source: Three Apigee Institute Surveys of business and IT decision makers at companies with over $500M in annual revenue; total n = 1,321
29. http://apigee.com/institute
1. Embrace change as critical
29
“The number of connected devices-from smartphones to smart cars and even
wearable computing devices-is heading for a tipping point at which most work,
play, and commerce will have a digital dimension. As a result, software will
touch nearly all social interactions or commercial transactions, with the potential
to generate data of unprecedented scope.”
How relevant is this to your company’s competitive position over the next five years?
Extremely relevant
(5)
Not at all relevant
(1)
4 3 2
30. http://apigee.com/institute 30
“The number of connected devices-from smartphones to smart cars and even wearable computing
devices-is heading for a tipping point at which most work, play, and commerce will have a digital
dimension. As a result, software will touch nearly all social interactions or commercial transactions,
with the potential to generate data of unprecedented scope.”
40
52
7
2 0
22
39
30
6
2
-
25
50
75
Extremely relevant
(5)
4 3 2 Not at all relevant
(1)
Digital Leaders Digital Laggards
Relevance to company’s competitive position over the next five years
Percentage
Source: Apigee Institute Survey of IT decision makers at companies with over $500M in annual revenue; total n = 800
1. Embrace change as critical
31. http://apigee.com/institute
2 & 3 Declare digital transformation & appoint leader
31
Source: Apigee Institute Survey of executives at companies with over $500M in annual revenue; total n = 321
We use the phrase “digital
transformation” or something
similar…
Senior-most person responsible for
digital transformation is…
32. http://apigee.com/institute
2 & 3 Declare digital transformation & appoint leader
32
Source: Apigee Institute Survey of executives at companies with over $500M in annual revenue; total n = 321
We use the phrase “digital
transformation” or something
similar…
Senior-most person responsible for
digital transformation is…
0
25
50
75
100
Digital Leaders Digital Laggards
33. http://apigee.com/institute
Mastering delivery of
Apps…exceeding
expectations for
• Number
• Time
• Cost
• Quality
• Business impact
33
Please rate how well each
word or phases describes
the information technology
(IT) organization at your
company using a scale from
0 to 10, where 0 is not at all
and 10 is extremely well.
versus
4. Outside in IT
34. http://apigee.com/institute
4. Outside in IT
34
0
0.1
0.2
0.3
0.4
0% 75% 150% 225%
CorrelationwithAppmastery
Percent App masters differ from market average
Outside in
How well does this word or phrase describe the IT organization at your company?
Source: Apigee Institute Survey of IT decision makers at companies with over $500M in annual revenue; total n = 800
35. http://apigee.com/institute
5. Strategic external resources
35
“The digital economy demands rapid innovation at scale. Fortunately, services
including IaaS, PaaS, & MBaaS are more flexible and scalable than external
resources previously available to IT. Companies mastering a “cloud first” and
strategic approach to external resources will have a competitive advantage
delivering digital experiences at the pace of the market.”
How relevant is this to your company’s competitive position over the next five years?
Extremely relevant
(5)
Not at all relevant
(1)
4 3 2
36. http://apigee.com/institute 36
“The digital economy demands rapid innovation at scale. Fortunately, services including IaaS,
PaaS, & MBaaS are more flexible and scalable than external resources previously available to IT.
Companies mastering a “cloud first” and strategic approach to external resources will have a
competitive advantage delivering digital experiences at the pace of the market.”
41
44
13
1 0
17
46
25
9
0
-
25
50
Extremely relevant
(5)
4 3 2 Not at all relevant
(1)
Source: Apigee Institute Survey of IT decision makers at companies with over $500M in annual revenue; total n = 800
Percentage
Digital Leaders Digital Laggards
Relevance to company’s competitive position over the next five years
5. Strategic external resources
37. http://apigee.com/institute
1. Embrace change as critical to the competitive position of the company
2. Declare digital transformation…
3. …with explicit (C-level) leadership
4. Outside-in IT, customer experience-centric, ecosystem-oriented
5. Make strategic use of external resources: MBaaS, PaaS, “cloud first”
Raising the odds of being a great (digital) business
37
6. Join the Apigee Institute: http://apigee.com/institute
7. Join us at live SF Sept 8-10: http://iloveapis2014.com/
38. Thank you
July 17, 2014
@apigeeinstitute
@bryan_kirschner
institute @apigee.com
Notes de l'éditeur
Based on Apigee Institute analysis, we expect the digital shadow to quadruple from 1.26 in 2013 to 5.23 in 2018, realizing an overall CAGR from 2010 to 2018 of 45% (excluding PCs).
Walgreens
McCormick
Philips
“The digital economy demands rapid innovation at scale. Fortunately, services including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and mobile back-end as a service (MBaaS) are more flexible and scalable than external resources previously available to IT. Companies mastering a “cloud first” and strategic approach to external resources will have a competitive advantage delivering digital experiences at the pace of the market.”
X: Digital Capabilities (Apps, APIs, Data analytics)
Y: Outperformance (time to market, share, satisfaction, revenue, margin)
%s
Odds ratios
Outside In IT
Appointed C-level digital leader
Company-wide “digital transformation”
Embrace digital as critical (THEOR 1) = 5
Strategic use of external resources (THEOR ) = 5