Profit grows two and a half times for Digital Disrupters

BANGALORE, INDIA: In the application economy, businesses are moving at the speed of light to leapfrog their competition and accelerate the digital transformation of their organization.

Digital Transformation is being driven as a coordinated strategy across a majority of organizations (55 percent), with many projects underway in multiple areas of the company, including customer services, sales and marketing, and product/service development, reveals a recent study by CA Technologies on the role of software as a business enabler.

45 percent of respondents have already seen measurable increases in customer retention and acquisition from their digital transformation initiatives and 44 percent have seen an overall increase in revenue.

The results also spurred the development of the Digital Effectiveness Index (DEI), a measurement tool developed in partnership with Freeform Dynamics. Using this measure, a group of top-performing organizations has emerged – the Digital Disrupters, identified as the top 14 percent of respondents.

“Not all businesses are on equal footing– some are forging ahead, some are getting left behind,” said Otto Berkes, CTO at CA Technologies, “In fact, there are some wide differences in overall effectiveness and maturity of digital initiatives—from significant revenue growth and customer retention to ultimately profits impacting the bottom line.”

In this elite group of Digital Disrupters, or those well on their way, respondents are already seeing impressive business benefits of embarking on a digital transition, including:

• Increased Revenue: Digital Disrupters have two times higher revenue growth than mainstream organizations,
• Higher Profits:They report two and a half times higher profit growth than the mainstream organizations

Additional key findings of the DEI include:

• Countries like the U.S., Canada, Germany and France lead the others
• Within verticals we see the strongest showing from Telecom and Financial Services, firms with public sector and consumer packaged goods lagging

There is a clear set of common traits and behaviors among today’s Digital Disrupters. The study, which surveyed 1,442 respondents from 16 countries across nine industry sectors, found that Digital Disrupters are:

• Software-driven:Digital Disrupters were 3.5x more likely (than the mainstream) to recognize the importance of being a software-driven business (60% vs 17%)
• Advocates for Agile:Disrupters were 2.5x more likely to fully use agile development (77% vs 31%), and in addition- 2.5x more likely to have DevOps broadly in place (70% vs 28%)
• Open to APIs:The study found that leaders were 2x more likely to leverage APIs for internal development (68% vs 34%), and 2.8x more likely to use APIs to enable third party apps (66% vs 24%).