The race to digital is heating up in financial services (FS) organizations; increasingly, the engine making this happen is Agile. Why? Quite simply, it is software that makes any financial business truly digital. Organizations are therefore in a rush to become great at rapidly innovating, developing, and delivering new software products to win new clients and retain and serve existing ones.
Oliwia Berdak and I have just published twin reports — one for eBusiness and channel strategy professionals, and one for AD&D leaders — that share our findings on how FS organizations are trying to ramp up their digital innovation capabilities rapidly by leveraging Agile and other innovative models.
Our key finding comes in response to a question: Are you building a digital lab that contains great developers but is isolated from key business leaders and other technology management teams? If the answer is yes, don’t! If separate digital units pursue disruptive opportunities, they will often end up with just front-end apps or proofs of concept that are impossible to integrate and scale with same speed they were developed.
I am just back from the CA World 2015 in Las Vegas, where everything was cool: from the weather, with unexpected but welcomed temperatures in the low 50s; to the event theme, with a strong focus on Agile, DevOps, APIs, and security; to Fall Out Boys and Sheryl Crow’s concerts.
As digital pervades all industries, and software becomes the brand, CA Technologies, which has traditionally had a stronger focus in the IT operations or “Ops” world, is making huge efforts to conquer the hearts and minds of the developers of large-scale development shops, or the “Dev”world. No doubt CA has been building a stronger DevOps in the last few years. Its goal is to partner in a larger industry ecosystem and be better positioned to serve the many organizations that are struggling to scale Agile and consistently build better applications faster. To make a stronger play in the Agile and Dev side of DevOps, CA made two brilliant acquisitions in 2015 which CEO Mike Gregoire highlighted in opening session of CA World: Rally Software, a leader in Agile project management at Scale, and Grid-Tools, a leader in Agile test data management and test optimization and automation.
With its revamped Dev strategy, CA aims to enter the Olympus of those large software and enterprise companies that have moved thousands of internal developers, testers, operations pros, and even managers to Agile and DevOps. With this transformation, CA will position itself to better serve current and future clients’ new needs to develop more software at speed. While CA started this transition much later than its competitors like IBM, Microsoft, HP, and other large software players (and even traditional end user enterprises), we recognize it’s still in time!
Rapidly evolving customer expectations continue to drive changes across all facets of business. Consumers and business customers increasingly expect real-time access to status, service, and product information. Rapidly changing consumer expectations ripple throughout the supply chain, shortening product cycles and requiring more agile manufacturing capabilities.
Forrester believes that 2015 will serve as an inflection point where companies that successfully harness digital technology to advantageously serve customers will create clear competitive separation from those that do not. CEOs will shift more investment funds to creating digitally connected products and solutions. Products like connected cars, connected running shoes, or connected aircraft turbines are creating new value propositions that tie these products closer to the customer engagement life cycle and help create new business models. Data as a product or service will create new revenue and customer value streams. For example, sensor-embedded tractors already generate data that power John Deere’s FarmSight service. And as industrial players like General Electric, Philips, Robert Bosch, and ABB learn to act more like software companies by creating value through software, their underlying business models will change rapidly.
As businesses pursue digital transformation, their CIOs will reset their priorities accordingly. Together with my colleagues Bobby Cameron, Nigel Fenwick, and Jennifer Belissent, we brought together the top predictions for CIOs in 2015. In particular, we predict that CIOs will:
The modern business world echoes with the sound of time-tested business models being shattered by digital upstarts, while the rate of disruption is accelerating. Organizations that will win in this world must hone their ability to deliver high-value experiences, based on high quality software with very short refresh cycles. Customers are driving this shift; every experience raises their expectations and their choices are no longer limited. Like trust, loyalty takes years to build and only a moment to lose. The threat is existential: Organizations need to drive innovation and disrupt their competitors or they will cease to exist.