Digital disrupters have 2x higher revenue growth than mainstream organisations: Survey

 

In a survey of 1,442 senior IT and business executives, CA Technologies found that in today’s application economy, it’s clear that digital transformation has reached every aspect of business.

Digital transformation is being driven as a coordinated strategy across a majority of organisations (55 percent), with many projects underway in multiple areas of the company, including customer services, sales and marketing, and product/service development.

 Digital disrupters have 2x higher revenue growth than mainstream organisations: Survey

Thinkstock

 

As a result, 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, according to the survey.

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 organisations 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: two times higher revenue growth than mainstream organisations; and two and a half times higher profit growth than the mainstream organisations.

Countries like the US, Canada, Germany and France lead the others. And, telecom and financial services lead within verticals, and firms with public sector and consumer packaged goods are seen lagging.

“While there are already successful companies who have become Digital Disrupters, mainstream businesses simply cannot continue with the status quo— they must undergo significant change to fully integrate digital into all aspects of their business,” said Berkes.

The study found that Digital Disrupters were 3.5x more likely (than the mainstream) to recognize the importance of being a software-driven business (60% vs 17%); 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%).

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%).

 

Updated Date: Oct 12, 2015 13:52:58 IST