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New Research Reveals 45% of Large Enterprises Struggle to Produce Mobile Apps

Companies mentioned in this article: Apigee

SAN JOSE, CA -- (Marketwired) -- 08/12/14 -- Apigee®, developer of the leading platform for digital acceleration, today released a new Apigee Institute report, "Lessons from the App Masters: How Some IT Departments Excel at Delivering Quality Apps," which explores the findings of a recent global survey of IT executives at large enterprises that attempted to deploy apps in 2013. The report reveals that while mobile apps play a key role in business success, nearly half of the IT decision makers surveyed -- 45 percent -- reported missing expectations on at least one of the five key measures of app deployment success: number of apps, quality of apps, budget, business impact, and time. Those who exceeded expectations across all five measures of app deployment -- the "App Masters" -- share a common pattern for success that includes strategic and aggressive use of external resources.

"Traditional IT is no longer viable for the new world of apps. IT as we know it has been heavily conditioned by the legacy of a control-oriented approach used to build and manage the systems of record of the past," said Bryan Kirschner, director of Apigee Institute. "But this approach is incompatible with the new business imperative to deliver systems of engagement at the pace the market demands. We've found that those who are succeeding in app deployment have a strikingly different approach to their IT departments. They recognize the strategic value of leveraging external expertise to maximize their agility and adaptability -- this fundamental shift is called 'outside-in IT' and is a competitive necessity for every IT leader hoping to deliver digital experiences faster and better."

Key Survey Findings
There is a clear disconnect between enterprises producing apps successfully and those struggling.

  • Of IT decision makers in large enterprises that attempted to deploy apps, more than one in four failed to meet their timeline, nearly one in five failed to meet budget, and a similar proportion had to produce fewer apps than planned. Another five percent of enterprises failed entirely in their attempts to produce apps.
  • In contrast, some companies seem to have mastered app development, with eight percent reporting exceeding expectations on building and deploying apps across all success metrics.

App Masters are far more open to working with outside parties.

  • Only 11 percent of the App Masters mostly or exclusively used internal resources, compared with more than a quarter of the "App Challenged" -- or those struggling to deploy apps.
  • Nearly a third of the IT decision makers from App Master companies reported proactively looking for external resources, compared to only six percent of those at the App Challenged.

App Masters understand the value and strategic power of leveraging external resources, beyond cost savings.

  • When asked why they turn to external resources, the App Challenged cited cost reduction as the top reason (41 percent) one would use external resources, but only 28 percent saw value in access to external expertise. On the other hand, App Masters equally value technical and design expertise. When asked why they turn to external resources, 78 percent of the App Masters stated that access to technical or project management expertise was an extremely important reason.

App Masters are more likely to embrace the cloud.

  • Of App Masters, 85 percent are replacing legacy components with public or private cloud alternatives. Another 83 percent of this group reports committing to leveraging cloud-based external resources wherever they meet business needs.
  • On average, the App Master enterprises reported moving 80 percent of their infrastructure to Infrastructure-as-a-Service (IaaS), and 80 percent of their application development to Platform-as-a-Service (PaaS). In comparison, the App Challenged reported moving an average of 44 percent of their architecture to IaaS and PaaS.
  • Of the App Challenged, only 18 percent saw the strategic value of the cloud as extremely relevant to their organization. In contrast, a full 61 percent of the App Masters agreed that being cloud-first by making use of IaaS, PaaS, and Mobile-Backends-as-a-Service (MBaaS) while strategically approaching external resources is extremely relevant to their company's strategic market position.

Methodology
The Apigee Institute's 2013 Global ITDM (IT Decision Maker) Online Survey was fielded in January 2014 to 800 IT Decision Makers at companies with more than $500 million in annual revenue around the world in more than 25 industries. The survey respondents came from the following geographies: Australia, China, France, Germany, India, Japan, the United Kingdom, and the United States of America.

The Apigee Institute is a research and strategy organization committed to helping businesses succeed in the new digital world. The Apigee Institute includes executives in Global 2000 corporations, academic researchers and domain experts who collaboratively shape its research agenda and participate in building a body of empirical data as a shared resource. For more information, go to http://pages.apigee.com/institute.html. The Institute invites all digital practitioners, executives, academics, and journalists to join the Apigee Institute. In order to join please fill out the short form here: http://goo.gl/ZhBext.

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About Apigee
Apigee provides the leading technology platform for digital business acceleration. Through APIs and big data, Apigee delivers the speed, scale and agility any business needs to compete in today's connected mobile world. Many of the world's largest and most respected organizations have selected Apigee to enable their digital business, including 20 percent of the Fortune 100 and 25 percent of the world's most admired companies. Apigee customers include global enterprises such as Walgreens, eBay, Shell, Live Nation, Kaiser Permanente and Sears. Apigee is headquartered in San Jose, California and has about 500 employees worldwide.

Connect with Apigee

Apigee blog: https://blog.apigee.com/front
Twitter: https://twitter.com/Apigee
Twitter: https://twitter.com/ApigeeInstitute
Facebook: https://www.facebook.com/apigee

Apigee is a registered trademark in the U.S. Other product or company names mentioned may be trademarks or trade names of their respective companies.


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