More than one in three UK companies surveyed say digital
improvement is their top priority; however, most are focusing on
simply building mobile apps and not incorporating the API and
analytics programs necessary for enabling digital business. This is
according to a new study of 252 senior executives and IT decision
makers across the UK in four major industries by Apigee®
(Nasdaq:APIC).
The Apigee Institute's 2015 UK Digital Business Survey Snapshot
reveals that apps alone may not be enough to harness the full
potential of digital business; effective digital transformation
comes from implementing a powerful combination of apps, APIs and
analytics. The report finds that companies that are investing in
these core digital technologies are eight times more likely to
report increased revenue from digital activities than those who
delivered apps alone.
This advantage is not simply a matter of number of companies
with increased revenue from digital, but also a matter of degree.
The respondents who only delivered apps yet saw increased revenue
reported a median of about £266,000 in increased revenue. In
contrast, the respondents who invested in apps, APIs and analytics
saw median returns of over £9,000,000.
Ground continues to shift
The Apigee Institute report reveals that 79 per cent of UK
businesses in the banking, travel and tourism, telecommunications
and retail industries are seeing a fundamental shift in customer
expectations due to digital growth. The same proportion recognise
that disruption from digital activities has already occurred in
their industry. Possibly as a result, more than eight out of ten
(86 per cent) respondents report an existing company-wide digital
transformation initiative. To deliver on this, 71 per cent of
respondents report that their company deployed mobile apps in the
twelve months before the survey.
Bryan Kirschner, director of the Apigee Institute, said: "In
what's rapidly becoming a mobile-first business world, all manner
of industries are being 'shaken up' by digital innovation. The
growing sophistication of digital technology and increasing
customer expectations are creating new demands for enterprises.
Regardless of industry, every business needs to change the way it
interacts with customers and partners – using data and digital
technologies to create new digital experiences, new efficiencies
and to grow and expand faster in today's digital world."
Putting customer experience first
With the proliferation of mobile devices and apps, many UK
businesses are seeing opportunities to connect with customers,
wherever they are, through digital information and services.
According to the survey findings, the top drivers for embarking on
digital transformation initiatives among UK businesses include
providing best customer experience (37%), new services or
experiences for customers (37%), identifying new revenue streams
for the business (32%) and remaining competitive (29%). About a
quarter (24%) of respondents are also turning to digital activities
to help cut costs.
Digital business: more than a mobile app
Seventy-one per cent of respondents deployed a mobile app in the
12 months before the survey, and more than half (55%) plan to offer
more services via mobile devices in 2015. But there is still
significant work to be done. Significant majorities of those
surveyed consider developing APIs (75%) and the ability to collect
and analyse big data (77%) important priorities for 2015. Yet, only
26 per cent of surveyed UK executives report plans to deploy new
APIs in 2015, and only 35 per cent plan to incorporate big data
analytics into their products, processes and services.
According to Kirschner, "We believe businesses need to move
beyond merely rolling out mobile apps and instead look more
holistically at how they can understand and add value to their
customers using data insights and analytics. Our research shows
that only 10 per cent of 'app-only' companies have seen an increase
in revenue from their digital efforts versus 81 per cent of those
who have incorporated data analytics and implemented APIs along
with their deployed apps."
Enterprises that have taken action in the past year on three
digital capabilities—apps, APIs and analytics—may have won
themselves an edge in the new digital economy. Compared to those
who only reported deploying a mobile app in 2014, respondents who
delivered this 'digital trifecta' are more than twice as likely
(41% to 15%) to have seen an increase in their ability to innovate.
And while they have an edge on cost savings to date—63 per cent
report savings versus 49 per cent of 'app only' companies—they
dominate on using digital to drive top-line growth in that they are
eight times more likely to report increased revenue from digital
activities than those who delivered apps alone.
UK business leaders in this survey report that their top three
barriers to digital transformation come in the form of limited
budgets (35%), poor IT infrastructure (29%) and restricted
executive support (25%).
"The research tells us that the majority of UK businesses
acknowledge that digital transformation is critical for their
business, and also recognise the importance of data analytics and
APIs as part of this journey," adds Kirschner.
"Data is the fuel that enterprises use to engage with, understand
and bring value to their customers, market and business. Data is
delivered by APIs, and customers engage with data through easy to
use mobile apps. Together, data, APIs and apps are the core
constructs of digital business."
For more information on the research or to download the full
Apigee Institute UK Business Survey Snapshot, please click here or
go to
https://pages.apigee.com/2015-UK-digital-business-report.html.
Methodology and Disclaimer
The survey was conducted from 5th March through 10th March,
2015. The research was conducted online with 252 UK IT decision
makers from four major industry sectors: travel and tourism;
banking and financial services; retail, and telecommunications.
Each industry is weighted to represent one fourth of the
survey.
Please note that the results reported in this release are based
on a limited data set. In addition, there may be factors that are
not reflected in the results reported in this release. Actual
results experienced by individual businesses may vary from those
reported in this release.
About Apigee
Apigee provides an intelligent API platform for digital
business. Many of the world's largest organizations select Apigee
to enable their digital business, including 20 of the Fortune 100,
five of the top 10 Global 2000 retail brands, and five of the top
10 global telecommunications companies. Apigee customers include
global enterprises such as Marks & Spencer, Walgreens,
Burberry, Shell, Live Nation, and First Data. Apigee is
headquartered in San Jose, California and has over 400 employees
worldwide.
Connect with Apigee
Apigee blog: https://blog.apigee.com/front
Apigee community: https://community.apigee.com/
Twitter: https://twitter.com/Apigee
LinkedIn: https://www.linkedin.com/company/apigee
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.
CONTACT: Media Contacts:
UK
Matthew Gurr
apigee@3-monkeys.co.uk
020 7009 3145
U.S./Global
Jim Dvorak
press@apigee.com
+1 319-929-0204
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