More than one in three UK companies surveyed say digital improvement is their top priority; however, most are focusing on simply building mobile apps and not incorporating the API and analytics programs necessary for enabling digital business. This is according to a new study of 252 senior executives and IT decision makers across the UK in four major industries by Apigee. The Apigee Institute’s 2015 UK Digital Business Survey Snapshot reveals that apps alone may not be enough to harness the full potential of digital business; effective digital transformation comes from implementing a powerful combination of apps, APIs, and analytics. The report finds that companies that are investing in these core digital technologies are eight times more likely to report increased revenue from digital activities than those who delivered apps alone.

1. Digital competitiveness
requires more than an app
©2015 Apigee. All Rights Reserved. 1

2. ©2015 Apigee. All Rights Reserved. 2
Apigee Institute report key findings
Research conducted online with 252 U.K. IT decision makers
in February 2015
Four major industry sectors include:
• Travel and tourism
• Banking and financial services
• Retail
• Telecommunications

3. ©2015 Apigee. All Rights Reserved.
The amount that U.K. shoppers
are set to spend via mobile
devices in 2015, an increase of
78% over 2014
RetailMeNot forecast, February 2015
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We are in the age of digital disruption
All manner of industries are being shaken up by digital; retail by
Amazon and eBay, hospitality by Airbnb, media by Netflix, and travel
by the likes of Uber.
Regardless of their industry, every business needs to innovate–
not only to be successful but to stay in business. Competitive
advantage will be based on velocity of bringing digital experiences
and services to market.
Even if you think you are a digital leader, there are always agile new
companies gaining market share.

4. ©2015 Apigee. All Rights Reserved.
£342B
The value that
networking
objects, systems, and
applications
in the “Industrial
Internet of Things”
could add to U.K.
GDP by 2030
Accenture, Winning with the Industrial
Internet of Things, 2015
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Consumers have embraced mobile
commerce
According to the Interactive Media in Retail Group (IMRG) and
CapGemini, 40% of U.K. online retail sales from November 2014
through January 2015 were completed through tablets and
smartphones.
MRG Capgemini Quarterly Benchmarking, February 2015
Cisco pegs the opportunity for private sector companies to connect
people, objects, data, and processes—what it calls the “Internet of
Everything”—at £34B
Cisco Internet of Everything Value Index, 2013

5. ©2015 Apigee. All Rights Reserved.
Percent of organisations that
are seeing a fundamental shift
in customer expectations due to
digital growth
Apigee, UK Digital Business
Survey Snapshot, 2015
5
The new market context is driving
transformation in the enterprise
79% of businesses are currently experiencing disruption from
digital innovation in their market
86% of enterprises expect to experience digital disruption in 2015
A third (36%) of companies cite digital improvement as their top
priority
79% say preparing for digital change is critical for the success of
their business
79%

6. ©2015 Apigee. All Rights Reserved.
Organisations are already
undertaking a company-wide
digital transformation initiative
Apigee, UK Digital Business
Survey Snapshot, 2015
6
Improved customer experience primary
reason businesses are turning digital
75% of companies want to understand their customers better in
2015
A strong majority (75%) aim to create a more connected digital
experience in 2015, with a similar proportion (75%) prioritising
delivery of more products or services via mobile devices
The most common reasons to embark on digital transformation:
• To provide best customer experience (37%)
• To produce new services/experiences for customers (37%)
• To identify new revenue streams for the business (32%)
• To remain competitive (29%)
More than
8 in 10

7. “
”
“The need to provide customers with a personalised experience
over the commodity purchase” was the main driver behind the
company’s digital transformation. “It’s all experience-led and getting
into people’s minds about what they want to do and how they want
to feel about something, then identifying the product to make that
happen. For us, being a digital business means offering more
personalisation in our offers for our customers and the flexibility to
access the right data to make this happen.
Matthew Newton, Enterprise Architect at GLH Hotels
©2015 Apigee. All Rights Reserved. 7
For some, this means capturing, analysing, and
distributing data to create a truly personalised
experience

8. “
”
Nowadays, not having an app would be like not having a website a
few years ago–it is now a business essential. But it’s not just about
having an app in the store, it’s about making sure this digital offering
is aligned with all parts of the business.
It’s essential that our digital offering is closely intertwined with the
physical in-store experience. Our digital services need to allow for a
fluid end-to-end journey. For example, because we sell considered,
expensive items, a customer is likely to first look online, then go and
look at the item in store, then head back online to order it. There
cannot be any disconnect between any of these stages, which is
why we need to provide great flexibility in our apps.
Sienne Veit, Director, Online product at John Lewis
©2015 Apigee. All Rights Reserved. 8
For others, this means blending
apps and other channels into a
seamless experience

9. ©2015 Apigee. All Rights Reserved.
The median reported increase
in revenue from digital across
all respondents. But among the
group that incorporates apps,
APIs, and analytics together, the
median rises to:
9
Impact of Digital on the bottom line
Difference between the “app-only” companies & those that also
implemented APIs and data analytics is stark.
Only one in ten “app-only” companies seen
an increase in revenue versus 81% of
those who executed on apps, APIs &
analytics
£487K
£9M

10. ©2015 Apigee. All Rights Reserved.
Developing APIs* and the
ability to collect and analyse
big data** are important
business priorities for 2015
Apigee, UK Digital Business
Survey Snapshot, 2015
10
Most understand the importance of the
digital agenda, but some may lack focus.
Fewer than 1 in 3 (31%) say their company incorporated “big data”
analytics into their products, processes, and services in 2014.
Only 25% report implementing APIs.
All of those who deployed apps, implemented APIs, and
incorporated data analytics into products and services in 2014
consider creating a more connected digital experience for
customers, partners, and employees a priority.
75%* | 77%**

11. “
”©2015 Apigee. All Rights Reserved. 11
The significance of executive focus and clarity
of vision is illuminated by businesses for which
technology has always been a core competency,
but who nonetheless are aggressively committed
to deploying a full portfolio of digital capabilities
ITV has always been a digital business. But for us, it’s now all about
simplifying our online estate with how we access data, to allow us to do it
more efficiently and quickly in order to deliver a better customer
experience across all devices.
The key for us is simplicity–we need far less moving of data between
systems and much more direct access to systems of record to get that
data. Being truly digital enables us to have greater business agility and
also exploit new opportunities as they arise. That’s the way I think all
businesses are moving and that’s the way ITV has to move so we can
remain competitive in a fast-changing landscape.
Paul Clark, Technology Controller, Online, Pay & Interactive, ITV.

12. ©2015 Apigee. All Rights Reserved.
The few laggards report
their company has taken
no steps toward digital
transformation.
Apigee, UK Digital Business
Survey Snapshot, 2015
12
Keep calm—but carry on further, faster.
There is striking agreement on the relevance of digital in the U.K.
industries we surveyed–U.K. business leaders embrace the fact that
digital matters.
Those who took action on APIs and analytics as well as apps in
2014 are not only reaping greater top-line benefits than those who
did not, but are also enjoying a stronger ability to innovate more
quickly.
Rather than resting on their laurels, they are looking at leveraging
their digital capabilities to develop new sources of revenue or enter
new markets in 2015.
2%

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We believe the time is now for top
executives at every enterprise that
understands that “digital matters” to
ensure that apps, APIs, and analytics
are all comparable and complementary
assets in the digital toolbox.

14. ©2015 Apigee. All Rights Reserved.
About Apigee
Apigee delivers an intelligent API platform to
accelerate the pace of digital business. We help
companies – from disruptive start-ups to the Fortune
100 – use their enterprise data and services to create
connected digital experiences for customers, partners
and employees. This is digital business.
Behind every smartphone, mobile app and connected
experience is at least one API – and APIs need to be
managed, secured, analyzed and scaled. That’s what
we do.
Apigee helps businesses use APIs to securely share
data and services across a myriad of devices and
channels. Built from the ground-up for the new
requirements of today’s digital business, our platform
helps companies serve customers in a real-time,
anywhere-anytime fashion, use data to continually
improve the customer experience, and drive
additional revenue.
For more information, visit apigee.com
About the
Apigee Institute
The Apigee Institute is a research and strategy
organization committed to helping businesses
succeed in the new digital world. The Apigee Institute
includes executives in Global 2000 corporations,
academic researchers, and domain experts who
collaboratively shape its research agenda and
participate in building a body of empirical data as a
shared resource.
For more information, visit The Apigee Institute
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