New Study Indicates Business Agility is the New Source of Business Value
- A new study commissioned by CA Technologies finds that modernizing enterprise software can give companies a competitive edge by helping them speed up product cycles and time to market, reduce maintenance costs and increase overall business performance and revenues.
Business leaders widely accept that success depends on keeping their technology infrastructure current and strategically planning for new innovation. This research identifies the important underlying connections among development agility and speed, software modernization and business profit and growth.
IT decision-makers were surveyed for a new study “Enterprise Software Modernization and Business Performance”* which was conducted by Forrester Consulting. Software modernization enables enterprises to keep their IT investments up to date and respond to changing business needs and market opportunities in order to win, serve and retain customers.Some findings of the survey include:
- Levels of software modernization were lower than expected, averaging 30 percent – 36 percent.
- Software modernization and software currency are different. Respondents reported far higher percentages of software running on vendors’ most current or current -1 release levels than their self-assessment of software modernization.
- Agility is significantly improved with modernization. Firms where IT leaders reported higher levels of modernization showed faster product and application development cycles.
- Faster-growing companies surveyed had average product cycles that were 35 percent shorter than at slower-growing companies. Likewise, the faster-growing companies had IT application development cycles that were 29 percent shorter than those in slower growing companies. Clearly, faster cycle times in product and application correlates with faster revenue growth.
- Modernization could reduce maintenance budgets by 20 percent.
Significant benefits can be achieved by modernizing systems of IT management.
“We believe the research suggests that business agility is the new source of business value,” states Sid Kumar, vice president and group head, customer lifecycle solutions, CA Technologies. “In the application economy, businesses with long-term flexibility will be able to respond dynamically to evolving customer requirements and drive positive performance. CA Technologies helps customers seamlessly manage this process by delivering a comprehensive approach to enterprise software lifecycle management.”
The new study also provides key recommendations to help enterprises modernize software.
