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The software-defined enterprise Rediscovering the role of software in the enterprise

Discover Performance / March 2014

Every business is a software business.

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Business leaders increasingly realize that customer experience and the way the enterprise builds its products and services, is not simply supported by software, it is defined by software.

What is the software-defined enterprise?

You are your software

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Who actually creates more software today?

13,000 software developers

100 million transactions daily

Microsoft employed 1,000 developers to produce Windows 7

40 million lines of software code in Microsoft’s Windows 7

100 million lines of software code

100 microprocessors networked

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Software is the experience “When was the last time you walked into a bank to complete a transaction?

“Is it still a bank, or is it a software company that happens to trade finance?” —Paul Muller, VP at HP Software

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Software is not just for software companies anymore

“Ultimately, every enterprise will be a software enterprise. Regardless of the industry you’re in, your company will be disrupted and ultimately transformed by software, and the sooner you act on it, the greater the opportunity to be the disrupter, versus the disrupted.”

Paul Muller VP & chief Evangelist,

HP Software

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The software-defined enterprise is a statement of intent being made by the business around what is acceptable when it comes to time-to-market, quality, and agility. It’s a strong signal to the technology organization as to what the business now expects.

Damon Edwards Managing Partner,

DTO Solutions

What does it mean for IT?

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The benefits of the software-defined enterprise

“There is a massive business opportunity in using software to anticipate industrial equipment maintenance needs. Take the jet engine. It has about 20 sensors that capture real-time continuous data — temperature, engine performance, etc. If I can take that data and use it to model a consumer outcome — say, more time on the wing or less fuel burn — that’s worth an awful lot of money to my customers. A 1 percent change in fuel burn for an airline is worth hundreds of millions of dollars.” —Jeff Immelt, General Electric CEO

“I’m going back to school on big data and software.”

Jeff Immelt General Electric CEO

Immelt invested $1 billion in 50,000 developers & data scientists.

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• Trust your maturing lines of business Your LOB users are probably more open to the idea of the software-defined enterprise than you think.

• Manage your own software spending Take more ownership over the choice of designers, developers, testing, and even hosting.

• Facilitate collaboration and flexibility Transform the internal culture.

How can business leaders embrace the software-defined enterprise?

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• Make IT not just a procurement place, but a broker of shared services to the business. This gives rising importance to “business engineers” who truly understand the business processes and application needs.

• Embody flexibility. The biggest change for software-defined businesses will be the nature of change itself. There will be much more of it.

• Adjust IT around the idea of a large number of small changes instead of—or perhaps as well as—a small number of large changes.

How can IT embrace the software-defined enterprise?

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"We’re going to lose if we cannot move quicker. We’re going to lose if we cannot respond to the needs of the market and find that right product-market fit. If we don’t learn quicker as an organization.“

Damon Edwards Managing Partner,

DTO Solutions

Respond to the crucial need for speed

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How: Let employees, customers, and partners “self-serve” and combine the capabilities of the entire organization—information, products, services, and platforms—directly. With some creativity and a good developer, you can redefine your organization for a new era in which your software is the face, and often the heart, of your business.

Make the entire enterprise “programmable”

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The CIO challenge

"Once your business is defined by software, the software has to be impeccable, the availability of the services needs to be unmatched, and your ability to control unmanaged change is absolutely critical. "

—Paul Muller

The CIO must:

• Learn how to balance the shift between maintenance and innovation

• Be more responsive to change

• Maintain stability while also being responsive to rapid changes

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to Discover Performance

Learn more about the software-defined enterprise

Articles:

Software-driven business means no more IT ‘projects’

How IT leaders win by serving the business

Video:

Speed and stability in the software-defined enterprise

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