Overview
- A high level of interoperability—when enterprise applications work together—creates long-lasting value, accelerating growth and transformation.
- Companies with high interoperability grew revenue 6X faster than their peers with low interoperability.
- Interoperability reduces time spent toggling between applications, which can free up nearly two hours of employees’ workdays
- For high interoperability, leverage the cloud, utilize composable tech, and focus on meaningful collaboration.
Agility in times of uncertainty
In an unpredictable world, the ability to quickly adapt to new circumstances, adopt new technologies, and otherwise remain nimble allows companies to thrive. With the integration of these technologies, people, and processes, they can untangle value from chaos and accelerate growth.
Our new global research found that in the last two years alone, one in two companies has had to transform multiple parts of their business at the same time or execute a single large transformation much faster than ever before. We call this compressed transformation
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Interoperability accelerates growth
How does interoperability create such far-reaching value?
At its core, interoperability connects technology, people and processes.
This inherent synergy improves the following value drivers:
Interoperability unites data silos, allowing for greater data visibility throughout the enterprise and better decision-making.
Interoperability better manages dependencies, providing the agility to transform multiple business functions fast and at the same time. It improves the enablement of the right IT infrastructure needed for successful transformations by 13 percentage points.
Interoperability eliminates the chance that multiple people work on the same task and streamlines data sharing. It also reduces the time spent toggling between applications, something that can account for nearly two hours of every employee’s workday.
Interoperability enables holistic, real-time access to customer data stored across systems, which allows a laser focus on customer needs. Highly interoperable companies are 15% more likely to be able to improve customer experience (CX) when it’s a priority.
Interoperability is now in reach
The concept of interoperability isn’t new, but the ability to manifest it is. This is due to three technology changes that are making it easier for organizations to configure and reconfigure applications as needed without overhauling their digital core: ubiquitous cloud, improved application design, and low-cost application.
Our research finds that only one in three companies is capitalizing on these changes to untangle the value trapped within their organization—and they are racing past their competitors.
What’s the long-term value of interoperability?
An additional five percentage points of annual revenue growth is a significant long-term advantage: If two similar companies start with $10 billion in revenue today, the company with high interoperability would stand to make $8 billion more over the next five years.
Interoperability accelerates growth
Better yet, interoperability won’t break the bank. Our research shows that leading companies are able to achieve high interoperability with just 2-4% higher IT and functional budgets directed at applications.
Interoperability is the common denominator to success across industries
The value of interoperability is consistent across industries and economic cycles.
The Life Sciences industry, for example, grew rapidly during the pandemic. Companies with high interoperability in this industry grew revenue by almost 10%. Those with low/no interoperability grew revenue at 5%, on average.
On the other end, the Travel industry struggled during the pandemic. The industry’s low/no interoperability companies saw revenue decline by 4% on average. The companies with high interoperability that could quickly pivot their business models thrived, growing revenue at 2%.
Barriers to interoperability
Today’s business and technology landscape can make reaching high interoperability a challenge.
Most large enterprises have more than 500 applications, and eight out of 10 say they plan to acquire more from multiple vendors. But the longer organizations wait to make themselves interoperable, the more difficult it becomes to retrofit interoperability on an ever-growing application stack.
What’s driving this difficult situation?
First, enterprises have more choices today due to a large number of cloud-based applications available. The second key factor is that more voices are involved in technology decision-making.
Other enterprises—60% of respondents in our study—are held back from improving interoperability because they struggle to align their application strategy with overall business goals. Another 57% cite a lack of buy-in from senior leadership; 44% lack a clear ROI or business case; and 34% believe interoperability is simply too expensive.
Improving Interoperability: three key actions
To improve interoperability, companies should leverage the cloud, invest in composable tech, and focus on meaningful collaboration.
Composable Tech
Build repeatable solutions that can be configured and reconfigured at speed to address changing business needs
Cloud
Use the cloud as the foundation for shared data and experiences across applications.
Collaboration
Focus on empowering employees with new digital skills, trusted collaboration, and a-shared definition of success.
Interoperability: untangling value for radical growth
Today’s companies must anticipate uncertainty and respond accordingly.
Most large enterprises have more than 500 applications, and eight out of 10 say they plan to acquire more from multiple vendors. But the longer organizations wait to make themselves interoperable, the more difficult it becomes to retrofit interoperability on an ever-growing application stack.
But building and improving interoperability in a diverse application landscape is easier said than done. Luckily, there are ways to position your company for success: leverage the cloud, utilize composable tech and focus on meaningful collaboration
One in three companies is able to develop this level of agility to untangle the value trapped in their organization, racing past their competitors in growth, efficiency and resiliency. Their secret? Using interoperability as the catalyst for total enterprise reinvention.
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Request for services
Discover range of service offerings for various Engineering Services. Let us know your areas of interest so that we can serve you better.