Industrial Buyer January/ February 2020

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AUTOMATION & DIGITISATION

Ushering in the future – digital transformation in 2020 and beyond Every definition of transformation includes the notion of change. Ultimately transformation is the process of moving from one state to another. Processes are often expressed in terms of phases of varying lengths during which critical events occur. Digital transformation is no exception. Lori MacVittie, principal technical evangelist, office of the CTO at F5 Networks discusses the phases of digital transformation business is expected to go through in 2020 and beyond.

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t begins with an initiative. A decision to move from a mostly manual, humandriven business to one that relies heavily on technology such as applications, automation and artificial intelligence. From beginning to end, digital transformation is about moving technology from business interactions to processes to new models. At first, it’s about apps. But as app portfolios expand, it turns to focus on automation and orchestration. With the increase in data generation, transformation becomes the pivot point for new business opportunities. Just about every organisation is in the process of transformation today as they forge a new, digital path to future success.

TRANSFORMATION IS MORE THAN TECHNOLOGY This transformation is not just about technology. It is rooted in a fundamental shift in the way business operates. Not unlike the shift from CapEx to OpEx induced by the rapid ascent of cloud computing, this transformation is forcing organisations to reshape its business models. The result is pushing technology (IT) out of the role of supporting the business into a lead role as a business. Software—which includes apps—directly contributed $845 billion to the US GDP in 2018 according to the BSA Foundation. In the EU, software contributed

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Lori MacVittie, principal technical evangelist, office of the CTO at F5 Networks ball bearings €304 billion. Total value added to global GDP is much higher and counts both indirect revenue as well as job creation. Every sector, every industry now relies on applications in one form or another. That includes businesses that produce consumable goods. Consider the reliance on IoT and the applications powering ‘smart farms’ that optimise agriculture so they can feed the people of the world. Even these industries increasingly rely on applications to operate their businesses.

THE APP ECONOMY Preliminary data from our forthcoming State of Application Services 2020 indicates most businesses rely on applications.

INDUSTRIAL BUYER JANUARY/FEBRUARY 2020

31 percent say they need apps and downtime is disruptive to their business. Another 29 percent indicate applications are their business and they can’t operate without them. Early adopters of digital transformation are already entering a period of digital expansion, marked by rapid adoption of automation and expansion of their app portfolios. For these organisations, streamlining the operational aspects of application delivery is critical. The ability to rapidly develop a new application or digital workflow must be matched during delivery to market. The speed and scale of this operational lifecycle increase with every application developed. The ability of IT to meet demand can only be realised through the adoption of automation, which enables organisations to develop and deploy even more applications.

‘Just about every organisation is in the process of transformation today as they forge a new, digital path to future success’


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