The global business marketplace has been undergoing an exciting and daunting transformation over the last few years. Unless you’ve been living in a cave with no access to the outside world, you’ve no doubt noticed that things are speeding up dramatically. Old business models are being left behind as new, faster, more agile companies rush to meet consumer demand. The old way of doing business is going extinct. Size used to be the biggest measure of success with huge companies devouring smaller rivals. Today, the fast eat the slow.
Recent studies have shown that across global enterprises 50% of annual revenues are now derived from new products that have been launched within the past 3 years! The days of the long term cash cow products staying in a company’s portfolio for years are over.
Need some proof? Take your smart phone out of your pocket. How old is it? How old was your last smart phone when you replaced it with this one? If you are a typical phone consumer you replace it every 22 months even though it is working just fine. Try walking around with a 4-year-old iPhone these days and people will think you’re some sort of caveman.
And it isn’t just high tech consumable goods facing this issue either. Just 5 years ago the average design cycle for new automobiles was 60 months. Today the typical automotive design cycle is approximately 24 to 36 months.
Business today has become all about the customer experience. And customers now demand a great experience every time. That’s hard to deliver unless you are constantly innovating. The same old thing gets old and boring really quickly, and customers will migrate away for new and exciting offerings.
Understandably, CEOs are feeling the pressure. Surveys show that 86% of CEOs expect technological advances will significantly transform their business over the next 5 years. Nearly 60% are very concerned about the speed of technological change.
Where does your IT stand in this fast paced whirlwind? IT is the backbone of nearly every organization in terms of actually producing and delivering products and services.
We commissioned a study on this subject that we are sharing with Canadian enterprises. The report contains some very relevant data focused on the 3 major IT challenges destabilizing companies and their lines of business, in a context where we must deploy new applications and technologies more rapidly to improve the customer experience and gain competitive advantage. It’s geared towards not only IT but others lines of business (CMO, CFO, COO, CEO). It also offers possible solutions to help Canadian businesses use IT as a lever for change and growth.