Eighty-Seven Percent of Asia Pacific Organizations See Software as Critical for Digital Transformation But Most Face Severe Gaps in Ability to Develop and Deliver Software

Eighty-Seven Percent of Asia Pacific Organizations See Software as Critical for Digital Transformation
But Most Face Severe Gaps in Ability to Develop and Deliver Software

New study also finds that software-savvy companies in Asia Pacific, compared to their global peers, are more adept at using software to achieve better business outcomes

SINGAPORE – 7 November 2017 –  A new survey of senior IT and business executives released today by CA Technologies confirms the growing strategic importance of software development to businesses in Asia Pacific, with 87% saying it is imperative to their digital transformation initiatives.

Software is the Critical Enabler of Business Value Today
According to the research titled “Don't Let an Outdated Software Strategy Hold You Back”, an overwhelming 95% of respondents in the region cited software as being essential or important for driving growth and expansion in current markets. 87% of them stated that it is key for them to create new products or services to enter new markets.

The findings showed that Asia Pacific businesses recognize software as the defining competitive advantage that will enable them to create new, disruptive businesses or to re-shape their existing business landscape. In fact, 89% of the companies highlighted software as the crucial factor that helps them stay competitive today.

Organizations in Asia Pacific also saw software as a valuable platform to support customer-related business priorities:
  • 91% of respondents said software is vital for them to deliver a better customer experience.
  • 89% said it is pivotal to improving insights into customers’ needs and wants.
  • 82% said it is critical for repositioning the company and its brand.

“Software is both an essential business enabler and differentiator in today’s increasing competitive, highly disrupted application economy. It is the customer-facing engine of any modern enterprise and it is highly effective in sensing and responding to new needs, threats, and opportunities,” said Martin Mackay, president and general manager, Asia Pacific and Japan, CA Technologies. “No matter which industry you are in, every brand will be represented, communicated and judged through technology deployed to create the customer experience.”

Severe Gaps Between Software Priorities and Capabilities
As firms in Asia Pacific become cognizant of the decisive role that software play in facilitating key business priorities, the survey also found that there is a corresponding emphasis in software-related priorities. 92% of respondents highlighted that it is imperative to have better prioritization of software development in line with business goals.

Although this aspect is seen as the most important software-priority in the region, only 23% of them said their IT teams are very effective in realizing it. Other key discrepancies between software priorities and capabilities revealed in the study include:

Respondents stating these priorities are key for  business improvement.
Respondents stating their IT teams are very effective in achieving these priorities.
Making security a more embedded part of the software development process.
Designing applications and systems with improved quality and consistency.
Gaining greater insight into customer needs to improve app performance and responsiveness.

Although software is indisputably pivotal for the growth of companies, the survey found that most organizations are severely lacking the right IT capabilities. This hampers their ability to develop and deliver software needed to support their business needs.

Masters of the Modern Software Factory Significantly Out-Perform All Others

To solve these pressing challenges, CA Technologies believes organizations need to build a Modern Software Factory that can help them compete in the rapidly changing application economy by meeting and exceeding expectations with flawless application delivery and exceptional customer experiences.

This global survey examined how well organizations are mastering the four principles of the Modern Software Factory – agility, automation, insights and security – and identified the top 24% in Asia Pacific as “Masters of the Modern Software Factory”. When compared to the mainstream, the Masters in the region delivered 70% higher profit growth and 50% higher revenue growth.

These findings clearly illustrate that these software-savvy companies are better equipped – in terms of vision, strategy and capabilities - to compete and succeed today. They are (when compared to the mainstream):
  • 5.7 times more likely to strongly agree that their organizations have the right vision and strategy to succeed in the application economy. This is also much higher than the global average of 4.4 times.
  • 3 times more likely to strongly agree they are moving fast enough to outpace their competitors, which is also higher than the global average of 2.7 times.

Masters in Asia Pacific are also more proficient in leveraging their software advantages to generate better outcomes compared to the mainstream
  • 4.1 times more likely to be very effective at prioritizing software development in line with business goals, higher than the global average of 3.5 times.
  • 2.8 times more likely to be very effective at delivering applications with improved quality and consistency, higher than the global average of 2.2 times. 

One of the ingredients behind the success of these Masters is their willingness to embrace the promise of innovation and technology. 48% of the leaders at Master-level organizations here strongly agree they are ready to exploit new software-driven strategies, versus 17% of mainstream companies. In addition, more than half (55%) strongly agree that their company culture support risk-taking, versus 15% of the mainstream.

The other key success factor can be attributed to their laser-focus on customer needs. 57% of the Masters in the region strongly agree that they understand what customers need and strive to deliver the best customer experience, versus 18% of mainstream companies.

“By tapping on the power of agility, automation, customer insights and security, software savvy-companies hold clear advantages over their peers as they can build and deliver new experiences while turning raw ideas into real-world solutions at maximum velocity,” said Mackay. “Organizations in Asia pacific need to understand that every company today is a software company. Without a modern approach to software, they will be left behind in a world where the Masters are the winners.”  


Survey Methodology
The global online survey of 1,279 senior IT and business executives (575 in Asia Pacific) was sponsored by CA Technologies and conducted by industry analyst firm Freeform Dynamics Intelligence Unit in July 2017. It was augmented by in-depth telephone interviews with key industry executives. The Asia Pacific countries surveyed were Australia, China, Hong Kong, India, Japan, Singapore, South Korea.

For full survey methodology details, see the report “Don’t Let an Outdated Software Strategy Hold You Back.” 

Download the full report and other materials:

About Freeform Dynamics

Freeform Dynamics is an IT industry analyst firm. Through our research and insights, we aim to help busy IT and business professionals get up to speed on the latest technology developments, and make better-informed investment decisions. For more information, and access to our library of free research, please visit www.freeformdynamics.com.

About CA Technologies

CA Technologies (NASDAQ:CA) creates software that fuels transformation for companies and enables them to seize the opportunities of the application economy. Software is at the heart of every business in every industry. From planning, to development, to management and security, CA is working with companies worldwide to change the way we live, transact, and communicate – across mobile, private and public cloud, distributed and mainframe environments. Learn more atwww.ca.com.

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