Digital delivery models are impacting traditional businesses. Driven by consumer demand for convenience and new consumption models, including subscriptions and usage-based consumption, enterprises are moving to Digital Business models and offerings, and finding huge upside from predictable revenue streams and long-term, recurring-revenue customer relationships.
There’s no simple means of accomplishing this, however there’s no “silver bullet.” Saugatuck’s research in the constantly-changing, constantly-innovating world of Digital Business continues to indicate that success requires not only significant investment in business strategy, modeling, and organization, but also a flexible, platform-based approach built on three cornerstones: data analytics, dPaaS and other Cloud development platforms, and DevOps.
A 36-page new Saugatuck Strategic Research Report Cornerstones for Digital Business: Big Data, dPaaS, and DevOps summarizes and explains this platform-based approach, using key concepts of Digital Business, in-depth explanation of the required platform architecture, and re-examinations of foundational Saugatuck research to illustrate and guide readers through Digital Business transitions.
The bottom line is that any firm wishing to take advantage of becoming a Digital Business whether a large enterprise traditionally on the buy side of technology, a software ISV in transition, or a pure-play Cloud solution provider faces one huge challenge: how to implement a platform to support a Digital Business model, and then keep pace with accelerating market and technology changes.
Why is it Happening?
Few companies really understand the scope of transformation required simply to enable digital business, let alone how to effect the transformation itself. Figure 1 highlights the complexities involved and addressed by our recommended platform approach.
Figure 1: Complexities and the Digital Business Platform
At the tip of the “spear” in Figure 1 are the systems of engagement engaging with customers, managing the monetization of the Digital Business model and integrating with systems of record, both in the Cloud and on premises.
The value chain driving this engagement is depicted in the four layers of the “spear shaft” supply chain and ERP, human resources and human capital management, DevOps and systems management platforms in support of core business solutions and line-of-business and marketing. Data platforms will support those business solutions and deliver the value for analytics-as-a-service solutions offered either as extensions to existing offerings or as new digital offerings. Connections to on-premises assets and workflows, social and mobile interfaces to value chain solutions and digital offerings, and linkages to APIs, partners and channels will extend the enterprise into its virtual dimensions reaching beyond to and leveraging the value provided on other platforms.
This foundational architecture is not based on a single computing-platform paradigm, but rather on multiple technologies and platforms that build synergies among themselves through loosely-coupled and opportunistic exchanges of value all parts of what Saugatuck has termed the Boundary-free Enterprise. The Boundary-free Enterprise in turn is made possible by an array of time- and location-independent computing capabilities Cloud, Mobile, Social and Data Analytics plus Sensors and APIs with Integration as the glue to enable synergy and leverage business value.
Click here to read the Market Impact.
This blog was originally published on Saugatuck Lens360 Blog on June 27, 2014. Published with permission.