Increased Automation, Agile Development Drive Greater RoI: Study

by CXOtoday News Desk    Sep 18, 2017


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 and conducted by industry analyst firm Freeform Dynamics.

The new research titled, “Don’t Let an Outdated Software Strategy Hold You Back,” shows just how significant the gaps are between the ‘Masters of the Modern Software Factory’ – the top 25% who embrace the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 and 50% higher revenue growth.

Exploring the digital world

The study also found that 53% of master-level organizations say their leaders are exploiting new software-driven strategies versus 18% of mainstream companies. Nearly half of the Masters say their executives provide the leadership needed to survive in the application economy versus 18% of mainstream companies.

Understanding Customer Needs 

Nearly 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. Half of the Masters are very effective at prioritizing software development in line with business goals, versus 15% of mainstream companies.

Balancing Risk With Security Practices

The study shows that 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.

Securing Better Quality Software

More than half [53%] of the Masters are very effective at delivering applications with improved quality and consistency versus 24% of mainstream companies. An equal number 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 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.