Posted by Charles Green on March 31, 2014
We live in a time of digital disruption.
- Software, and customers interaction with that software, now defines companies and their brands.
- Developing software-enabled products requires sophisticated technology and architectural design skills. This presents tremendous challenges — even more so for companies for whom technology is not in their DNA.
- Companies must look in the mirror and evaluate if they currently have the skills and expertise to navigate this new environment. In this new world where customers interact with you through software, do you have the skills to develop products and services which will create intense and enjoyable customer experiences?
- Leaders in the evaluation have a clear vision of the evolving PDS market. These providers increasingly focus on serving buyers who need help developing software-enabled products. This requires suppliers to develop new capabilities such as Agile and design skills.
- Increasing focus on business metrics from both providers and clients. Clients expect providers to act as strategic suppliers — and that means achieving and being measured on business outcomes. Clients almost universally scored their provider highly on reducing the time to market of their products. However, they rated their service providers less strongly in helping generate innovation and driving the use of technology in products.
- Many engagements remain relatively immature. Many engagements involved vendor resources being used simply as an extension to the client’s in-house team. The result? That service providers don’t yet take significant responsibility for the success of the end product.
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