It’s no secret that every company is a software company today. The key is to figure out how software is the driver for your company’s success. That may not seem a straightforward notion, especially if your business is manufacturing bicycles. Once you discover a strategic software idea, however, our blog post I Have an App Idea, Now What? will guide you through the next steps.
As global competition creates an ever-shrinking economy, companies must compete more strategically. “Organizations need to quickly evolve into digital businesses that can more flexibly adapt to changing business conditions. Becoming a digital business, however, requires embracing fundamental transformation on a massive scale….The rise of the digital savvy customer means the need for radical change has become a business survival imperative,” according to Capgemini Fellow Pierre Hessler.
General Electric: A case study
General Electric is a ubiquitous example of how a hardware and repair company can became a software company. The company had to shift its focus away from providing reliable equipment, and toward providing a new customer experience involving equipment that provided useful information through analytics and algorithms included in the equipment.
In the last few years, GE has been squarely focused on equipping its machines with sensors, connecting the equipment to cloud-based software, and building analytics capabilities that have transformed its business model. Instead of selling get engines, GE is positioning its sensor-equipped engines as a way for airline companies to improve performance by increasing the total miles the engine can fly each year and reducing downtime. That’s how GE’s software is driving revenue.
How can your traditional business adopt a software company mindset to drive revenue and maintain a competitive, global business model?