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Software is fast becoming a key driver of differentiation and innovation, according to a new report by Accenture. In today’s software-driven world, every company needs to rethink its potential and reinvent itself. Companies can start this reinvention by changing the way they design, build and use applications, and also by adopting a new operating model that enables business and IT to jointly develop software to enter new markets and reach new customers.
Today’s business world is increasingly high velocity and software driven, says the report. In this environment, IT is often challenged to innovate and respond quickly to business needs because of its operational obligations. According to Gartner, IT resource allocation is currently weighted heavily toward running the business, which consumes 60 to 80 percent of IT spending.
Accenture believes that more fundamental change is needed to reinvent the business of applications for today’s marketplace challenges.
“When long-term competitive advantage depends on software, being a ‘fast follower’ may not be fast enough anymore,” said Bhaskar Ghosh, group chief executive, Accenture Technology Delivery. “Software strategies are quickly becoming business strategies. The business of applications needs a dynamic and high-impact makeover using new strategies that will help companies not just sustain a business advantage, but to gain ground on the competition.”
The Accenture report introduces three application strategies:
Liquid applications: To compete based on agility and speed, companies can no longer afford complex, lengthy and expensive coding of applications, or massive, multi-year system implementations. What’s needed is a new way to build software—faster, flexible and more liquid—with reusable components that allow for the rapid assembly of applications in support of dynamic business needs.
Intelligent applications: Companies need to embed software intelligence everywhere to manage growing volume, velocity and complexity, and to maximize the business value of internal and external data—including that from the physical world. Software intelligence is made possible by an influx of data, processing power and advances in data science such as natural language processing, machine learning and cognitive computing.
Connected applications: To grow revenue and defend their market position, companies will need to create new competitive frontiers using software. Doing so requires opening multiple dimensions of application connectivity—with business partner and customer ecosystems, as well as with the rapidly growing Internet of Things that are essential to delivering new services. Connected applications will run everywhere—not just on phones, tablets and PCs, but also in manufacturing, pipelines, industrial equipment, cars, wearables and more.
“In contrast to today’s monolithic applications, future applications need to be more nimble,” said Prasad Sankaran, senior managing director, Accenture Technology, Application Services. “Companies should begin their reinvention now in order to benefit from applications that can adapt to the pace of business, manage rising complexity and open doors to more interconnected business environments.”
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