Majority of Singapore organisations (97 percent) are affected by the application economy. Among them, 43 percent of senior IT and business leaders in Singapore are seeing a significant impact of the application economy on their own organisations.
This is according to findings from a recent study conducted by Vanson Bourne, which is commissioned by CA Technologies. Focusing on the Asia Pacific and Japan (APJ) region, the study polled 650 senior IT and business leaders from financial services, healthcare, manufacturing, retail telecommunications and media industry across six APJ markets - namely Australia, China, India, Japan, Korea and Singapore.
The study revealed that while enterprises across Singapore recognise the impact of the application economy, less than half of the respondents (45 percent) felt that they are very, or extremely effective in responding to it. A lack of resources (36 percent) and a lack of understanding of the benefits of the application economy (32 percent) by the executive management were cited as the biggest obstacles to responding effectively to the application economy.
To better cope and meet the new demands of the application economy, enterprises in Singapore are taking firm actions to increase their capabilities and resources. These include delivering an average of three customer applications in the past year, increasing investments by an average of 14 percent over the next five years, and acquiring software companies to add development capabilities.
Applications a moneymaker for enterprises
According to CA Technologies, applications drive revenue and are one of the main sources of competitive advantage for organisations today. In fact, a significant 70 percent of Line of Business (LOB) respondents are releasing applications more quickly due to competitive pressures. Other pressures cited by LOBs driving the launch of applications included customer demand (42 percent) and revenue shortfall (32 percent).
Additionally, only 10 percent of LOB executives are completely satisfied with IT's speed in delivering new applications or services. As a result, 80 percent of enterprises surveyed have adopted, or are planning to adopt DevOps to increase application delivery. Among these enterprises, the focus will be on investing in more training for development and operations personnel, redesigning processes to drive DevOps practice and hiring new resources with necessary skills.
"In Singapore, which has one of the world's highest mobile and broadband penetration rates, applications have become part of the daily life of consumers and the business standard for organisations trying to engage and connect with their customers," said Chua I-Pin, vice president, Asia South, CA Technologies. "Organisations that will thrive in this application economy are those willing to transform their corporate culture, innovate and invest in new application capabilities so as to provide their customers with a superior experience."
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