Software is a key market differentiator and a tool that can give you a competitive advantage
As digital technologies relentlessly reshape competition, products and services increasingly depend on software for differentiation and performance. In every leading industry you can imagine, software is giving many organizations and companies the leading edge they need to stay ahead of the competition. Entire industries are being transform through software. Uber, the taxi-hailing app the changing the transportation industry around the world. The question is do you have a strategy in place to leverage the power of software in your organization?
A Mckinsey research suggests that companies pay a price when they undervalue the strategic importance of producing excellent software. In the research, 1,300 companies of varying sizes and regions across the world were surveyed and the results were very interesting. It was noted that the top-quartile companies developed software upward of three times more productively than companies in the bottom quartile. These companies had 80 percent fewer residual design defects in their software output.
The research also showed that the top performing companies benefited from a 70 percent shorter time to market for new software products and features. This performance gap means that top companies can speed up the flow of new products and applications at much lower cost and with markedly fewer glitches than other companies can.
CEOs, therefore need to determine whether they have the right organization and capabilities to compete in an environment where software continues to change the game.There’s no escaping the competitiveness of today’s software-talent marketplace, which is particularly challenging for large companies seeking to build their capabilities. As digital technologies continue reshaping markets, though, there’s little alternative. Embracing the rising strategic importance of software, and viewing its development as a crucial competitive battlefield, are keys to success for an ever-growing number of companies. Again, the question remains, what are you doing to leverage software to give you the competitive edge in your organization?