3 Reasons IT is Your Key to Digital Transformation [Report]

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The Enterprise Management Associates’ (EMA) defines digital transformation as “transformation initiatives directed at optimizing business or organizational effectiveness via digital and IT services.” If your enterprise is headed towards digital transformation, your team has already taken note of the needs that have to be addressed, and it’s likely they align with technical-driven IT needs as well. EMA and AppDynamics’ survey-based research on “How Application Intelligence Powers Digital Transformation” conducted multiple research studies on the link between IT and Digital Transformation in late 2015. Take a look at some of the top findings we discovered:

1. 85% of companies are engaged in digital transformation initiatives

Poor user experience makes or breaks a business, and every enterprise is aware of the risks of potentially losing revenue, brand loyalty, and market share. Over 50% of participants stated that user experience has become a priority, application performance improvements having a strong impact on overall application quality and customer satisfaction.

The cost of downtime varies widely depending on business specific factors of customer-facing applications, such as size, industry vertical and revenue. One interview with a consumer technology manufacturer reported a per-outage cost to average $1.5 million. Poor application performance impacts the bottom line in other ways as well: about 50% of consumers expect a web page to load in two seconds or less, and 40% will abandon a site that requires more than three seconds of loading time. For a site generating $100K per day in revenue, a one second page delay can cost $2.5 million in lost sales annually.

2. Technology and IT drive a business’ digital transformation goals 

Companies that have proven successful in digital transformation all had one thing in common: they valued technology as a key driver for business success. These companies were also more likely to adopt into specific solutions, such as application performance management (APM) to execute and maintain that success. Companies that accelerated software releases by 10% or more were more than ten times as likely to see double-digit revenue growth as well. Essentially, a digital business runs on software.

The research also uncovered a strong link between accelerated delivery of new software features and business revenue growth. While both IT and business user participants saw APM as improving the reliability and consistency of digital services, IT’s focus was on managing change and visibility while the business focus was on performance. From an IT viewpoint, the onslaught of virtualization, cloud, and ongoing delivery of new code into production all contribute to dynamic ecosystems that need to be managed accordingly. From the business perspective, application performance is now critical to customer and market retention.

3. To succeed in digital transformation, and enterprise needs a unified application performance platform

It’s important to invest in comprehensive application performance tools, but the critical component is ensuring you have the right tools tailored for your organization. A solution that integrates both application performance and end-user monitoring (EUM) to apply distinctive combinations of metrics and analytics is the key to supporting the higher-level goal of improving an end user experience. AppDynamics provides a mix of APM, EUM, and next-generation analytics specifically designed to meet the needs of the digital business.

As the application intelligence company that provides enterprise with the next generation of APM software to monitor, manage, analyze, and optimize customer experiences and the most complex software environments behind them, AppDynamics is the unified platform that incorporates the capabilities required to succeed on a journey to digital transformation.

Interested in learning more on how digital transformation initiatives are defined for enterprise? Download the EMA report, How Application Intelligence Powers Digital Transformation, here!

Saba Anees

Saba Anees

Saba is the Content Marketing Specialist at AppDynamics. She grew up in the SF Bay Area, graduated from UC Berkeley, and joined AppDynamics' Marketing team in 2015. You can follow her on Twitter at @sabaanees.