While these two companies operate in two different industries, they share one common strategy -- disruption with winning applications. For these companies, applications are not just a sales channel, they are integral to their business model. These companies are not software enterprises. However, without software and applications, these companies would not exist.
Affecting change is not as simple a task as increasing budgets and asking IT teams to develop and roll out an application. Management will need to address business fundamentals such as corporate culture, developmental methodologies and deployment infrastructures to stay ahead of the applications arms race and become leaders in the application economy.
An Application Divide in Asia Pacific & Japan
To help decode how companies can successfully leverage the application economy, the survey uncovered a set of regional Leaders and Laggards. In our research, Leaders are those who have invested in building capabilities to harness opportunities in the application economy; while Laggards are companies that are struggling to cope with the application economy.
By embracing the application economy, we have found that the Leaders in APJ were distinctly outperforming the Laggards in all key business metrics. Leaders were growing revenue more than four times and profit more than three times the rate of Laggards. Leaders were also experiencing more than double the business coming in from new products and services than their Laggard counterparts.
By reviewing the data from the survey, as well as speaking to customers in APJ, we have picked up on four key areas in which Leaders are different from Laggards. These traits are particularly fascinating, as they impacted not just the CIOs and other "traditional" IT decision makers, but also other high-level business decision makers from across all functional groups.
Trait 1: Leaders put DevOps at the core of their business success
In conversations with Leaders, the executives are extremely aware of the disruptive nature of technology, which can amplify the power of the next good idea. These Leaders recognize that speed and agility is crucial in reacting to such changes in the market or in creating their own industry's market changing product.
This awareness brought more attention to traditional application delivery models, which grappled with problems such as constrained resources, disparate tools and excessive errors, which in turn caused delays in delivery timelines.
Leaders, both IT and non-IT, have adapted by exploring a DevOps model, which plans and orchestrates the entire release process, allowing companies to better integrate across disparate tools and resources, as well as automate key processes. Looking at the numbers, this change brought about a whole range of benefits, including 18% faster time-to-market, 60-90% increase in defects detected and 19% increase in revenue.
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