The FINANCIAL -- NEW YORK -- 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, reach new customers and drive new growth.
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.”
“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.”
“In the digital world, software doesn’t merely support the business, but rather is the business. Most companies’ existing operating model for software development is not fit for purpose in this business environment,” said Paul Daugherty, chief technology officer, Accenture. “Innovation must be driven jointly by business and IT, and the operating model must embrace new technology stakeholders – from R&D to marketing to operations.”