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Moving at the new speed of the market: Benchmarking your digital readiness with real-world data

Benchmarking Digital Readiness: Moving at the Speed of the Market

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Moving at the new speed of the market: benchmarking your digital readiness with real-world data Companies are under pressure to move at the speed of digital natives. Benchmark your organization against empirical data and real-world case studies to see where you stand and what you can do to jumpstart your digital readiness.

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Page 1: Benchmarking Digital Readiness: Moving at the Speed of the Market

Moving at the new speed of the market: Benchmarking your digital readiness with real-world data

Page 2: Benchmarking Digital Readiness: Moving at the Speed of the Market

Bryan KirschnerApigee

Brian PaganoApigee

Max FurmanovAccenture

Page 3: Benchmarking Digital Readiness: Moving at the Speed of the Market

Bryan KirschnerApigee

Brian PaganoApigee

Max FurmanovAccenture

dozens

hundreds

thousands

Page 4: Benchmarking Digital Readiness: Moving at the Speed of the Market

Benchmarking the new world competitive environment…

Page 5: Benchmarking Digital Readiness: Moving at the Speed of the Market

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, BI Intelligence, Kleiner-Perkins

Ind

ex

Figure scaled to 1:1

Fast-growing “digital shadow” of devices & data

Page 6: Benchmarking Digital Readiness: Moving at the Speed of the Market

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, BI Intelligence, Kleiner-Perkins

Ind

ex

Figure scaled to 1:1

Fast-growing “digital shadow” of devices & data

Estimated change in 1K Mbps bandwidth / $1 USD

Page 7: Benchmarking Digital Readiness: Moving at the Speed of the Market

Digital leaders beating digital laggards

New Products

& Services

Market Share

Gross Revenue

Customer Satisfaction

Leaders: top 2 quartiles on Apps, APIs &

Data AnalyticsOutperformed a lot Outperformed a little

Laggards: bottom 2 quartiles on Apps, APIs & Data AnalyticsOutperformed a lot Outperformed a little

Comparison of company's performance to others in the sector over last 12 months

Margin0

25

50

75

100

3110

24 1337

15 2812 23 11

Perc

enta

ge

Source: Three Apigee Institute Surveys of business and IT decision makers at companies with over $500M in annual revenue; total n = 1,321

Page 8: Benchmarking Digital Readiness: Moving at the Speed of the Market

Battle to turn digital capabilities into competitive advantage

Digital Leaders

Digital Laggards

Market Leaders

Market Laggards

31%

34%

15%

19%

11%

Source: Three Apigee Institute Surveys of business and IT decision makers at companies with over $500M in annual revenue; total n = 1,321

Distribution of 1,000+ large companies 2013-2014

Page 9: Benchmarking Digital Readiness: Moving at the Speed of the Market

How do you move up & right?

Page 10: Benchmarking Digital Readiness: Moving at the Speed of the Market

Business leadership

• C-Suite declaration of digital transformation & accountable C-level leader• Enterprise-level KPIs established for digital impact • Create ways to monetize data and services

Page 11: Benchmarking Digital Readiness: Moving at the Speed of the Market

Think Bigger: 4 Strategic Objectives to identify

Opportunities Beyond Direct Monetization

Copyright © 2014 Accenture All rights reserved.

Enablement of broader digital strategy will bring better and new experiences to customers

Direct monetization is transactional and confining to existing business models

Page 12: Benchmarking Digital Readiness: Moving at the Speed of the Market

1. Ubiquitous Customer Experience

• Anytime & anywhere• Consistent while channel-appropriate experience• Abstraction from irrelevant internal decisions

Copyright © 2014 Accenture All rights reserved.$€

Broaden customer base Reduce customer attrition Lower cost to serve through better

self service

Page 13: Benchmarking Digital Readiness: Moving at the Speed of the Market

2. Industrialized Operations

• Next generation controls• Real-time optimization• Automation & Dynamic adjustment• “Free developers”

Copyright © 2014 Accenture All rights reserved.$€

Reduce operating costs Accelerated time to market

Page 14: Benchmarking Digital Readiness: Moving at the Speed of the Market

3. Big[ger] Data

• Big Data = correlating information within your enterprise• Bigger Data = correlating information across enterprises• Better customer insight & tailored services

Copyright © 2014 Accenture All rights reserved.$€

Targeted marketing Data monetization

Page 15: Benchmarking Digital Readiness: Moving at the Speed of the Market

4. Innovation

• Become part of others’ value chain• Grow business at the edge, around traditional core• Spur innovation from outside, access new resources

Copyright © 2014 Accenture All rights reserved.$€

New revenue channels through service monetization

Page 16: Benchmarking Digital Readiness: Moving at the Speed of the Market

Copyright © 2014 Accenture All rights reserved.

Offering Products & Services

Enable Larger Value Chain

BecomeA Platform

Digital Capability

Revenue C

hann

els

Moving Up Value Chain

Page 17: Benchmarking Digital Readiness: Moving at the Speed of the Market

Technology leadership

• “Cloud first” approach• “Outside in” mind shift• Master two-speed IT: “first gear” for maintaining systems of record & “top

gear” for delivering systems of engagement at the pace of the market

Page 18: Benchmarking Digital Readiness: Moving at the Speed of the Market

Systems of engagement• Experimentation• Differentiation• Speed, Agility

• Well-defined• Commoditized• Stability, Efficiency

Systems of record

Page 19: Benchmarking Digital Readiness: Moving at the Speed of the Market

Apps

ESB, SOA,App Servers,Databases

APIs Backends

Page 20: Benchmarking Digital Readiness: Moving at the Speed of the Market

Aim big and (re)architect to move fast

Page 21: Benchmarking Digital Readiness: Moving at the Speed of the Market

What stands in the way?

Page 22: Benchmarking Digital Readiness: Moving at the Speed of the Market

What stands in the way?yourX^

Page 23: Benchmarking Digital Readiness: Moving at the Speed of the Market

Love APIs? Help Write the Book

• Request invitation to Getting Digital Insiders:

email to [email protected]

• @sramji @bryan_kirschner

A project of the Apigee InstituteComing September 2015

#gettingdigitalbook

Page 24: Benchmarking Digital Readiness: Moving at the Speed of the Market

Thank you