New Research Points to Apps, APIs and Data as Key to Competitive Success
Survey of IT and marketing decision makers reveals that high “digital performers” are seeing greater impact and better competitive results versus their competition
Apigee, the API company, today released the findings of its Digital Impact survey of 200 IT and marketing executives in large companies conducted by the Apigee Institute, a new research and strategy organization. Aimed at quantifying how digital capabilities are impacting businesses, the survey revealed that "high digital performers” – defined as those companies currently the best at using apps, APIs and data – are seeing better performance today in revenue, time to market and customer satisfaction than weaker digital performers. And virtually all executives – 99 percent – expect that these digital capabilities will have an impact on overall success in the next 12 months, with a steady or greater impact over the next five years.
This is the first survey conducted by the Apigee Institute, which was launched today to help Global 2000 companies extend their leadership in today’s app economy. The Apigee Institute delivers strategic insights and practical recommendations based on real-world benchmarks and original research, with a focus on guiding organizations as they build strong digital ecosystems through apps, APIs and data. [see related press release].
Key Survey Findings
The strongest digital performers – those companies that are best at using apps, APIs and data – are seeing better competitive results today compared to weaker digital performers.
· Top digital performers are five times more likely to report strongly outperforming on time to market.
· Top digital performers are three times as likely to report strongly outperforming on gross revenue and margin.
· Top digital performers are one-and-a-half times more likely to report strongly outperforming on customer satisfaction.
The top digital performers expect to experience greater impact and results in the next 12 months and continue a strong competitive trajectory over the next five years.
· 60 percent of the top digital performers expect to see a big impact from digital initiatives over the next 12 months, vs. 15 percent of the weakest digital performers.
· 62 percent of the top digital performers expect the impact of digital initiatives on overall enterprise results to “increase a great deal” over the next five years, vs. 23 percent of the weakest digital performers.
· 58 percent of the top digital performers are very confident that their company will be in a much stronger overall market position five years from now: 19 points ahead of the overall average (39 percent) and more than twice the number of the weakest performers (23 percent).
Virtually all executives surveyed believe that digital capabilities like apps, APIs and data will have a real impact on overall enterprise results.
· 99 percent of executives expect data analytics, digital marketing, apps and APIs to have an impact on overall enterprise results in the next 12 months.
· Marketing executives expect financial results (63 percent) and brand reinforcement (58 percent) to be the top two areas of impact.
· IT executives expect reduced time to market (54 percent) and brand reinforcement (49 percent) to be the top two areas of impact.
“The data suggests an emerging digital divide as high-performing companies embrace core digital capabilities to move ahead,” said Bryan Kirschner, director of the Apigee Institute. “The market is early yet, but executives recognize that investing now in building digital capabilities will yield a significant competitive advantage in the next 12 months, while digital laggards will be left behind.”
“Competing in the app economy requires an understanding of new digital strategies and their future impact on market position,” commented Chet Kapoor, CEO of Apigee. “It’s this simple: if you are a decision maker in a large company and want to stay relevant, apps, APIs and data should already be at the heart of what you do, or next on your list.”
To see the survey summary report, An Emerging Digital Divide, go to http://pages.apigee.com/institute.html.
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The Digital Impact survey was conducted by The Apigee Institute, in partnership with Greenberg Quinlan Rosner Research. The survey, conducted in April 2013, asked 200 IT and marketing executives in companies with more than $500M in annual revenue (more than half of the respondents were from companies with $1B or more in revenue) to assess their current and future digital capabilities, strategy and impact.
Apigee is the leading provider of API technology and services for enterprises and developers. Hundreds of companies including AT&T, Walgreens, Bechtel, eBay, Pearson, and Gilt Groupe as well as tens of thousands of developers use Apigee to simplify the delivery, management and analysis of APIs and apps. Apigee's global headquarters are in Palo Alto, California, and it has offices in Bangalore, London, Austin and Detroit. To learn more, go to www.apigee.com.
Apigee is a registered trademark in the U.S. Other product or company names mentioned may be trademarks or trade names of their respective companies.