Software is becoming a bigger piece of how every enterprise competes in the digital economy. To succeed, enterprises need to become a "digital innovation factory," creating and distributing digital products and services with digital-native speed and scale.
Becoming a digital innovation factory means that while organisations will continue to consume software such as ERP, CRM, manufacturing, finance, human resources, procurement, and other enterprise applications, they will also shift their priorities toward producing software that is embedded in their products and services, to compete in their own industry.
Most of this digital innovation will be focused on creating new value for their customers.
"We are now on the future path of digital innovation, where every company becomes a software producer," said Mickey North Rizza, program vice president, Enterprise Applications and Digital Commerce at IDC. "The organisations with digital innovation supply chains focused on delivering digital products, services, and experiences will reshape our global economy in the coming years."
The transition from software consumer to software producer, or digital innovation factory, requires a solid and carefully thought out strategy and execution plan, along with strong skills and substantial agility in the IT department.
To build these capabilities, enterprises need a solid methodology. IDC's digital innovation supply chain is made up of four equally important characteristic steps: plan, source, develop, and distribute.
Following the digital innovation supply chain enables a very high level of business transformation digitally, as demonstrated by companies that have already begun the journey. When organisations understand they can completely change their operating model, creating more customer value and optimizing their business for success, it completely shifts the strategy and dynamics of their business plan and future vision.
But reaching this level of transformation will require a substantial commitment for most organisations.