Mastering the ‘Modern Software Factory’ Helps Companies Achieve Higher Revenue and Profit Growth and Better Business Outcomes
Mastering modern software development by building a ‘Modern Software Factory’ is at the heart of business success in the digital economy, according to the results of a survey of over 1,200 IT leaders released today by CA Technologies (NASDAQ: CA) and conducted by industry analyst firm Freeform Dynamics.
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According to a recent study by CA Technologies and conducted by Freeform Dynamics, Masters of the Modern Software Factory yield higher revenue growth and profit. (Graphic: Business Wire)
The new research titled, "Don't Let an Outdated Software Strategy Hold You Back," shows just how significant the gaps are between the ‘Masters of the Modern Software Factory’ – the top 25% who embrace the key principles of agility, automation, insights and security – and everyone else across a range of measures from revenue and profit to executive leadership and risk-taking to adoption of modern software tools and approaches.
The ‘Masters’ are embracing and exploiting the digital world across key aspects of their organizations and out-performing others on key business indicators. When compared to the mainstream, the Masters delivered:
- 70% higher profit growth
- 50% higher revenue growth
Mastering the Modern Software Factory also offers a significant lead in:
Exploiting the Digital World
- 53% of Master-level organizations say their leaders are exploiting new software-driven strategies versus 18% of mainstream companies.
- 50% of Masters say their executives provide the leadership needed to survive in the application economy versus 18% of mainstream companies.
Understanding Customer Needs and Better Aligning IT with the Business
- 61% of the Masters reported that they understand what customers need and strive to deliver the best customer experience, versus 22% of mainstream company respondents.
- 52% of Masters are very effective at prioritizing software development in line with business goals, versus 15% of mainstream companies.
Balancing Risk With Responsible Security Practices
- Over 43% of the Masters’ company culture support risk-taking, versus 17% of mainstream companies.
- 49% of Masters have senior management who understands the importance of not compromising software quality or security for time-to-market, versus 15% of mainstream companies.
Developing, Delivering, Managing and Securing Better Quality Software
- 53% of the Masters are very effective at delivering applications with improved quality and consistency versus 24% of mainstream companies.
- 52% of the Masters reported that their development processes are well documented and well-understood, versus 18% of mainstream companies.
“There’s a clear indication that those organizations that adopt modern software development practices such as embracing agile, increasing automation wherever possible, using machine learning and analytics to generate insights, and integrating security into the development process do a better job of driving growth,” said Otto Berkes, executive vice president and chief technology officer, CA Technologies. “If you don't have a modern approach to software, along with the factory needed to deliver on your vision, you will be left behind in a world where the masters are the winners,” he added.
The results also show just how far organizations still need to go to have software processes that are flexible and can keep up with business demands:
- Only 16% and 18% say they have a high rate of richness and maturity in their software development tools for Agile and DevOps, respectively.
- Only 28% strongly agree that their software team was well equipped to deliver quality on a continuous basis.
- Only 25% strongly agree that they have robust internal processes to continuously test for security vulnerabilities.
- Just 32% believe IT to be very effective at garnering greater insight into customer needs to improve application performance and responsiveness.
The Bottom Line
“The reality is that the future of your business is in the hands of your developers and depends on how well you’ve organized and enabled them to seize growth opportunities for your company,” Berkes concluded.
The global online survey of 1,279 senior IT and business executives was sponsored by CA Technologies and conducted by industry analyst firm Freeform Dynamics’ Intelligence Unit in July 2017. It was augmented by in-depth telephone interviews with key industry executives. For full survey methodology details, see the report “Don’t Let an Outdated Software Strategy Hold You Back.”
Download the full report and other materials:
About Freeform Dynamics
Freeform Dynamics is an IT industry analyst firm. Through our research and insights, we aim to help busy IT and business professionals get up to speed on the latest technology developments, and make better-informed investment decisions. For more information, and access to our library of free research, please visit www.freeformdynamics.com.