Business today is completely different from business in the past – in the way companies are structured, the way customers purchase and consume, and in the strategies businesses adopt for long-term success. Success today requires the enterprise to rethink its applications for business agility.
I read a recent report by MGI Research on business agility that covered the topic so well I felt it was worth sharing and expanding upon its premise here. The report focuses on the importance of business agility for enterprise success in the future, particularly over the next ten to fifteen years where MGI Research believes agility will significantly drive business decisions and ultimately guide company valuations. This shift will have “a broad, deep and lasting impact on how businesses view their current application software portfolios and force them to re-think their business software strategies, evaluation approaches, and investment strategies”.
Here are a few takeaways from the report on key drivers behind business agility:
- Agility and innovation is prime time. The US stock market in reaching new record highs with company valuations pegged closely to topline growth. Investors are paying massive premiums for innovative, rapidly expanding companies that strive to deliver innovative products and services and are hell-bent on shrinking time-to-market in their quest for growth.
- Technology is a massive enabler. The advent of essentially free and infinite compute capacity, storage, and bandwidth – combined with new analytic tools (“big data”) and extremely low cost networked sensors – is powering a business revolution. The panoply of digital tools available today results in a radically shrinking time-to-market.
- Business dynamics are extremely different. A winning enterprise applications strategy today demands an honest reappraisal of business requirements, priorities, and technologies – companies can no longer rely on the well-worn axioms and homegrown systems of the 1990s.
MGI Research estimates that by 2020, “the majority of Fortune 500 companies will shrink their time-to-market by over 40% through the use of cloud computing, big data, 3D printing, mobile technologies, and process and organizational innovations.” Business agility plays a huge role in successfully decreasing the time it takes to go-to-market as it provides enterprises the ability to pivot and refocus resources where needed. To ensure business agility in your enterprise, ask the following questions: 1) How can we increase our overall business agility? 2) What are the best practices for agile manufacturing applications strategies? 3) Which vendors will make the transition to agile applications?
Long-term success in today’s digital age requires business agility. Don’t go-to-market without it. For MGI Research’s full post, click here.