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Apigee Institute 2015 UK Digital Business Survey Snapshot

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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. 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.

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Apigee Institute 2015 UK Digital Business Survey Snapshot

  1. 1. Digital competitiveness requires more than an app ©2015 Apigee. All Rights Reserved. 1
  2. 2. ©2015 Apigee. All Rights Reserved. 2 Apigee Institute report key findings Research conducted online with 252 U.K. IT decision makers in February 2015 Four major industry sectors include: • Travel and tourism • Banking and financial services • Retail • Telecommunications
  3. 3. ©2015 Apigee. All Rights Reserved. The amount that U.K. shoppers are set to spend via mobile devices in 2015, an increase of 78% over 2014 RetailMeNot forecast, February 2015 3 We are in the age of digital disruption All manner of industries are being shaken up by digital; retail by Amazon and eBay, hospitality by Airbnb, media by Netflix, and travel by the likes of Uber. Regardless of their industry, every business needs to innovate– not only to be successful but to stay in business. Competitive advantage will be based on velocity of bringing digital experiences and services to market. Even if you think you are a digital leader, there are always agile new companies gaining market share.
  4. 4. ©2015 Apigee. All Rights Reserved. £342B The value that networking objects, systems, and applications in the “Industrial Internet of Things” could add to U.K. GDP by 2030 Accenture, Winning with the Industrial Internet of Things, 2015 4 Consumers have embraced mobile commerce According to the Interactive Media in Retail Group (IMRG) and CapGemini, 40% of U.K. online retail sales from November 2014 through January 2015 were completed through tablets and smartphones. MRG Capgemini Quarterly Benchmarking, February 2015 Cisco pegs the opportunity for private sector companies to connect people, objects, data, and processes—what it calls the “Internet of Everything”—at £34B Cisco Internet of Everything Value Index, 2013
  5. 5. ©2015 Apigee. All Rights Reserved. Percent of organisations that are seeing a fundamental shift in customer expectations due to digital growth Apigee, UK Digital Business Survey Snapshot, 2015 5 The new market context is driving transformation in the enterprise 79% of businesses are currently experiencing disruption from digital innovation in their market 86% of enterprises expect to experience digital disruption in 2015 A third (36%) of companies cite digital improvement as their top priority 79% say preparing for digital change is critical for the success of their business 79%
  6. 6. ©2015 Apigee. All Rights Reserved. Organisations are already undertaking a company-wide digital transformation initiative Apigee, UK Digital Business Survey Snapshot, 2015 6 Improved customer experience primary reason businesses are turning digital 75% of companies want to understand their customers better in 2015 A strong majority (75%) aim to create a more connected digital experience in 2015, with a similar proportion (75%) prioritising delivery of more products or services via mobile devices The most common reasons to embark on digital transformation: • To provide best customer experience (37%) • To produce new services/experiences for customers (37%) • To identify new revenue streams for the business (32%) • To remain competitive (29%) More than 8 in 10
  7. 7. “ ” “The need to provide customers with a personalised experience over the commodity purchase” was the main driver behind the company’s digital transformation. “It’s all experience-led and getting into people’s minds about what they want to do and how they want to feel about something, then identifying the product to make that happen. For us, being a digital business means offering more personalisation in our offers for our customers and the flexibility to access the right data to make this happen. Matthew Newton, Enterprise Architect at GLH Hotels ©2015 Apigee. All Rights Reserved. 7 For some, this means capturing, analysing, and distributing data to create a truly personalised experience
  8. 8. “ ” Nowadays, not having an app would be like not having a website a few years ago–it is now a business essential. But it’s not just about having an app in the store, it’s about making sure this digital offering is aligned with all parts of the business. It’s essential that our digital offering is closely intertwined with the physical in-store experience. Our digital services need to allow for a fluid end-to-end journey. For example, because we sell considered, expensive items, a customer is likely to first look online, then go and look at the item in store, then head back online to order it. There cannot be any disconnect between any of these stages, which is why we need to provide great flexibility in our apps. Sienne Veit, Director, Online product at John Lewis ©2015 Apigee. All Rights Reserved. 8 For others, this means blending apps and other channels into a seamless experience
  9. 9. ©2015 Apigee. All Rights Reserved. The median reported increase in revenue from digital across all respondents. But among the group that incorporates apps, APIs, and analytics together, the median rises to: 9 Impact of Digital on the bottom line Difference between the “app-only” companies & those that also implemented APIs and data analytics is stark. Only one in ten “app-only” companies seen an increase in revenue versus 81% of those who executed on apps, APIs & analytics £487K £9M
  10. 10. ©2015 Apigee. All Rights Reserved. Developing APIs* and the ability to collect and analyse big data** are important business priorities for 2015 Apigee, UK Digital Business Survey Snapshot, 2015 10 Most understand the importance of the digital agenda, but some may lack focus. Fewer than 1 in 3 (31%) say their company incorporated “big data” analytics into their products, processes, and services in 2014. Only 25% report implementing APIs. All of those who deployed apps, implemented APIs, and incorporated data analytics into products and services in 2014 consider creating a more connected digital experience for customers, partners, and employees a priority. 75%* | 77%**
  11. 11. “ ”©2015 Apigee. All Rights Reserved. 11 The significance of executive focus and clarity of vision is illuminated by businesses for which technology has always been a core competency, but who nonetheless are aggressively committed to deploying a full portfolio of digital capabilities ITV has always been a digital business. But for us, it’s now all about simplifying our online estate with how we access data, to allow us to do it more efficiently and quickly in order to deliver a better customer experience across all devices. The key for us is simplicity–we need far less moving of data between systems and much more direct access to systems of record to get that data. Being truly digital enables us to have greater business agility and also exploit new opportunities as they arise. That’s the way I think all businesses are moving and that’s the way ITV has to move so we can remain competitive in a fast-changing landscape. Paul Clark, Technology Controller, Online, Pay & Interactive, ITV.
  12. 12. ©2015 Apigee. All Rights Reserved. The few laggards report their company has taken no steps toward digital transformation. Apigee, UK Digital Business Survey Snapshot, 2015 12 Keep calm—but carry on further, faster. There is striking agreement on the relevance of digital in the U.K. industries we surveyed–U.K. business leaders embrace the fact that digital matters. Those who took action on APIs and analytics as well as apps in 2014 are not only reaping greater top-line benefits than those who did not, but are also enjoying a stronger ability to innovate more quickly. Rather than resting on their laurels, they are looking at leveraging their digital capabilities to develop new sources of revenue or enter new markets in 2015. 2%
  13. 13. ©2015 Apigee. All Rights Reserved. 13 We believe the time is now for top executives at every enterprise that understands that “digital matters” to ensure that apps, APIs, and analytics are all comparable and complementary assets in the digital toolbox.
  14. 14. ©2015 Apigee. All Rights Reserved. About Apigee Apigee delivers an intelligent API platform to accelerate the pace of digital business. We help companies – from disruptive start-ups to the Fortune 100 – use their enterprise data and services to create connected digital experiences for customers, partners and employees. This is digital business. Behind every smartphone, mobile app and connected experience is at least one API – and APIs need to be managed, secured, analyzed and scaled. That’s what we do. Apigee helps businesses use APIs to securely share data and services across a myriad of devices and channels. Built from the ground-up for the new requirements of today’s digital business, our platform helps companies serve customers in a real-time, anywhere-anytime fashion, use data to continually improve the customer experience, and drive additional revenue. For more information, visit apigee.com About the Apigee Institute The Apigee Institute is a research and strategy organization committed to helping businesses succeed in the new digital world. The Apigee Institute includes executives in Global 2000 corporations, academic researchers, and domain experts who collaboratively shape its research agenda and participate in building a body of empirical data as a shared resource. For more information, visit The Apigee Institute 14

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