The ability for companies to develop their own software solutions will increasingly be crucial to their success. Read here what it takes to achieve this.
IDC predicts that within the next three to five years, almost every company - regardless of industry - will become a "digital innovation factory". This shift will require the continued use of standard business-critical software such as CRM, finance, HCM, procurement and other enterprise applications, but also the development of internal software to meet the growing demands, expectations and preferences of customers.
The future of digital innovation
New solutions developed in-house must be embedded in the companies' own products and services so that they can remain competitive in their own industries. The focus is on creating new added value for their own customers with digitally optimised product offerings and services.
In addition, new technologies are being developed to support operations and fulfil the transition from a manual long-tail business process to a digital process to improve the operational tasks and profitability of the business. The digitally innovative company has thus arrived with the goal of providing a digitally enhanced user experience for both its customers and its own employees.
The global economy is becoming increasingly digital
IDC estimates that by 2023, the ability of companies to bring their own digital innovations to market quickly will be a key competitive requirement, as more than half of the global economy will be digitally driven by that time. Many companies are already well on their way to becoming successful software producers that develop and distribute digital products and services with the necessary speed and scalability.
All about innovation on CIO.de
It is therefore no longer sufficient to simply consume software; in future, companies will also have to develop it themselves. Of course, this is not trivial and requires a framework, in many cases external support, appropriate resources and procedures to not only plan, create and expand the software, but also to use it as a revenue generator.
Development of a Digital Innovation Supply Chain
This transformation towards a "new normal" requires a strong and well thought-out strategy and a careful implementation plan, coupled with solid skills and agility in the IT department. Companies need a solid methodology during this transition phase that promotes digital innovation. IDC has developed the DISC (Digital Innovation Supply Chain) methodology for this purpose.
The DISC methodology enables the highest level of digital business transformation. When companies understand that they can completely change their operating model, create more customer value and optimise for success, it completely transforms a company's strategy and vision. Changes of this magnitude seem daunting at first, but they can also pave the way for a company's successful future in the digital economy. Developing your own software using the DISC approach can help companies become industry leaders in the digital economy.
How does your company become a digital innovation factory?
IDC has come up with some recommendations for companies that, like most of us, have so far belonged to the group of traditional technology buyers.
- Take on the challenge of creating a "digital innovation factory" in your own organisation - your organisation's competitive advantage and future viability depend on it.
- Don't reinvent the wheel. Look at use cases of your competitors. They can serve as models and impulses for creating your own digital innovation supply chain. From planning to development, deployment and distribution, there are a variety of approaches that promise success. You can also find a wealth of studies and best practices in the market that can help you evaluate the right strategy and implementation.
- Invest in your software development skills. This is a requirement that requires buy-in from senior management (possibly up to the board) and unquestionably involves high investment costs. Growing your development team may require your organisation to rethink existing policies, including how and where developers are employed and how they are promoted and developed internally. Failure to allocate the appropriate resources can spell the end for many companies in the long term.
- Act with the urgency you need. Your competitors are not waiting for you. They are setting the standards now for product and service functionality, customer satisfaction and the pace of innovation.
In order to compete, your company will need strong capabilities in internal digital innovation built around the new planning, procurement, development and distribution models and processes. This will be the "new normal" in the increasingly digitalised economy. So better welcome this development today than tomorrow.
This article was originally posted by CIO