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Lack of API, data analytics investment costing UK companies millions

Lack of API, data analytics investment costing UK companies millions

LONDON: Digital transformation is taking place, but with API’s and data analytics ignored in favour of apps.

Over a third of UK companies have placed digital improvement as their top priority, however, the majority are focusing on building mobile apps and are neglecting API and analytics programs.

Developing apps alone is unlikely to be enough to fully grasp the potential of digital businesses, with effective digital transformation coming from a combination of apps, API’s and analytics.

According to the Apigee Institute’s 2015 UK Digital Business Survey Snapshot, companies which are investing in these core digital technologies are eight times more likely to increase revenue from digital activity, this is when compared to those who are only developing apps.

The report found that those who are only delivering apps saw an increased revenue median of about £266,000, in contrast, those who are investing in all the areas saw median returns of over £9,000,000.

Despite the majority of UK companies recognising the value of developing API’s (75%), only 26% actually plan to deploy API’s in 2015 and not many more (35%) plan to incorporate big data analytics into their products, processes and services.

Not only is the use of the ‘digital trifecta’ providing an increase in revenue, it is also leading to an increased ability to innovate, with 41% compared to apps only 15% seeing an increase.

The report shows that 79% of UK businesses in the banking, travel and tourism, telcom and retail industries are seeing a fundamental shift in customer expectations, which comes as a result of digital growth.

Those who recognised the disruption (79%) also responded to say that (86%) are experiencing a company-wide digital transformation initiative.

Bryan Kirschner, director of the Apigee Institute, said: “In what’s rapidly becoming a mobile-first business world, all manner of industries are being ‘shaken up’ by digital innovation.”

The growing sophistication of digital technology and increasing customer expectations are creating new demands for enterprises. Regardless of industry, every business needs to change the way it interacts with customers and partners – using data and digital technologies to create new digital experiences, new efficiencies, and to grow and expand faster in today’s digital world.”

The top drivers for embarking on digital transformation include providing best customer experience (37%), new services or experience for customers (37%), identifying new revenue streams for the business (32%) and remaining competitive (29%).

Sienne Veit, Director, Online Product at John Lewis, said: “Nowadays, not having an app would be like not having a website a few years ago – it is now a business essential. But it’s not just about having an app in the store, it’s about making sure this digital offering is aligned with all parts of the business.”

It is essential that our digital offering is closely intertwined with the physical in-store experience. Our digital services need to allow for a fluid end-to-end journey. For example, because we sell considered, expensive items, a customer is likely to first look online, then go and look at the item in store, then head back online to order it.”

There cannot be any disconnect between any of these stages, which is why we need to provide great flexibility in our apps.”

According to those surveyed, the main barriers to digital transformation were limited budgets (35%), poor IT infrastructure (29%) and restricted executive support (25%).