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Are	You	Ready	for	Digital	
Disruption?	
10	Lessons	in	Digital	Transformation
Every	company	is	at	risk	of	digital	
disruption	
The	brick-and-mortar video	store gave way to	
the	Netflix “red	envelope”	DVD	service,	which
gave way to	Netflix streaming,	and	to	an
explosion of	other streaming services,	from	
Hulu,	Amazon,	and	others.	
If you don’t think your own business	is at risk
from	digital disruption,	you’re wrong.
Research	shows	that	some	companies	
see	this	as	an	opportunity.	
• CA	Technologies	engaged	industry	analyst	firm	
Freeform	Dynamics	to	research	how	
companies	are	dealing	with	the	challenges	of	
becoming	a	digital	business.	
• The	online	study	was	completed	in	August,	
2015.	The	1,442	respondents	included	senior	
IT	and	business	leaders	(70%	and	30%	
respectively)	from	16	countries	and	nine	
industry	sectors.
Research	showed	a	select	group	of	
companies	are	spearheading	the	
disruptive	use	of	technology.	
• “Digital	Disrupters”	consistently	used	technology	
to	drive	their	market	competiveness	and	
streamline	their	business.	
• Segmenting	Respondents	by	Digital	Effectiveness	
Index	
• Market	competitiveness	contribution	+
• Impact	on	business	scorecard	
• Digital	effectiveness	index	
Digital	Disrupters
Digital	Achievers
Mainstream
Lessons	from	the	Digital	Disrupters
• What	do	these	top	performing	organizations	
have	in	common?
Lesson	1:	Understand	the	powerful	
role	of	software	and	apps.	
• Digital	Disrupters	are	3.5	times	more	likely	
than	mainstream	companies	to	strongly	agree	
with	the	statement	“We	need	to	become	
more	of	an	app-centric,	software-driven	
business”	(60%	vs 17%).	
• They	are	3.8	times	more	likely	to	strongly	
agree	with	the	statement	“In	addition	to	our	
core	business,	we	are	also	now	a	software	
company”	(53%	vs 14%).
Lesson	2:	Focus	on	modern	software	
development	and	delivery	methods.	
• Digital	Disrupters	are	2.5	times	more	likely	to	
have	agile	development	techniques	and	
methodologies	in	place	(77%	to	31%)	and	to	
have	broadly	implemented	DevOps (70%	to	
28%).
Lesson	3:	Exploit	APIs	for	internal	
speed	and	efficiency.	
• Digital	Disrupters	are	twice	as	likely	as	
mainstream	companies	to	have	taken	a	
managed	approach	to	using	APIs	for:	
• full-function	web	applications	(68%	vs 34%)	
• mobile	apps	(64%	vs 31%)	
• back-office	systems	(67%	vs 33%)
Lesson	4:	Manage	the	use	of	APIs	to	
engage	the	developer	ecosystem.
• Digital	Disrupters	are	2.6	times	more	likely	
than	mainstream	companies	to	have	taken	a	
managed	approach	to	using	APIs	to	integrate	
third-party	services	into	their	own	apps	(68%	
vs 26%).
• They	are	2.8	times	more	likely	to	enable	
external	developer	access	to	their	systems	and	
data	via	APIs	(66%	vs 24%).
Lesson	5:	Focus	on	smarter	
management	of	IT	investments	to	
maximize	ROI.	
• Digital	Disrupters	are	three	times	more	likely	
than	mainstream	companies	to	strongly	agree	
that	“we	must	get	smarter	at	assessing	and	
prioritizing	investments	to	maximize	ROI”	
(67%	vs 22%)	
• They	are	twice	as	likely	to	have	put	portfolio	
management	in	place	to	prioritize	and	track	IT	
programs	(89%	vs 45%).
Lesson	6:	Emphasize	emerging	digital	
channels	to	the	customer.	
Digital	• Digital	Disrupters	are	almost	three	times	as	
likely	as	mainstream	companies	to	
acknowledge	the	criticalness	of	new	digital	
channels:	
• Mobile	technology	(64%	vs 23%)	
• Social	networks	(48%	vs 17%)	
• Wearable	technology	(35%	vs 12%)	
• Internet	of	Things	(51%	vs 18%)
Lesson	7:	Explore	new	avenues	to	keep	
the	value	flowing.	
• Digital	Disrupters	are	2.5	times	more	willing	
than	mainstream	companies	to	experiment	
and	fail	quickly	(57%	vs 23%).	
• They	are	3.5	times	more	likely	to	strongly	
agree	with	the	need	to	shift	from	fixed	
product	cycles	to	continuous	innovation	(66%	
vs 19%).
Lesson	8:	Use	digital	to	drive	core	
business	efficiency	and	effectiveness.
• Digital	Disrupters	are	more	likely	than	
mainstream	companies	to	have	an	ongoing	
digital	initiative	for	business	operations	and	
delivery	(58%	vs 37%)	or	for	workforce	
efficiency	and	effectiveness	(58%	vs 38%).
Lesson	9:	Create	a	more	coherent	and	
collaborative	approach	within	IT.
• Digital	Disrupters	are	3.6	times	more	likely	
than	mainstream	companies	to	have	
implemented	cross-functional	processes	
within	the	IT	organization	(68%	vs 19%)	and	to	
have	broken	down	the	barriers	between	Dev
and	Ops	(48%	vs 14%).
Lesson	10:	Free	up	resources	to	fund	
digital	investments.	
• Digital	Disrupters	are	three	times	more	likely	
than	mainstream	companies	to	strongly	agree	
that	IT	must	be	streamlined	to	free	up	
resources	for	digital	investment	(65%	vs 22%)	
and	that	business	operations	should	be	
streamlined	as	well	(60%	vs 19%)
10	lessons	from	the	Digital	Disrupters.	
• Understand	the	powerful	role	of	software	and	apps	
• Focus	on	modern	software	development	and	delivery	methods	
• Exploit	APIs	for	internal	speed	and	efficiency	
• Manage	the	use	of	APIs	to	engage	the	developer	ecosystem	
• Focus	on	smarter	management	of	IT	investments	to	maximize	ROI	
• Emphasize	emerging	digital	channels	to	the	customer	
• Explore	new	avenues	to	keep	the	value	flowing	
• Use	digital	to	drive	core	business	efficiency	and	effectiveness	
• Create	a	more	coherent	and	collaborative	approach	within	IT	
• Free	up	resources	to	fund	digital	investments
The	Payoff:	If	you	aren’t	a	Digital	
Disrupter,	you	are	at	risk	of	being	
disrupted.	
• Digital	Disrupters	have:	
• 2x	higher revenue	growth than the	
mainstream (26%	vs	11%)	
• 2.5x	higher profit	growth (32%	vs	13%)	
• 1.5x	more	new-business	based	revenue	(37%	
vs 23%)
Are	You	Ready	for	Digital	Disruption?	
• To	learn	more	about	this	research	and	find	out	how	
your	competitors	are	using	digital	disruption	to	
transform	their	businesses,	download	the	research	
report:	Exploiting	the	Software	Advantage:	Lessons	
from	Digital	Disrupters	
• Download	Now	at	www.rewrite.ca.com/Disrupters
• Facts	in	this	presentation	are	from	the	study	“Exploiting	the	Software	Advantage:	Lessons	
from	Digital	Disrupters”,	Freeform	Dynamics	and	CA	Technologies,	August	2015.	
• Copyright	©	2015	CA.	All	rights	reserved.	This	document	is	for	your	informational	use	only	
and	does	not	form	any	type	of	warranty.	The	information	provided	regarding	customer	
examples	and	survey	information	are	based	on	the	customer’s	specific	use	and	experience,	
so	results	may	vary.	All	trademarks,	trade	names,	service	marks	and	logos	referenced	herein	
belong	to	their	respective	companies.

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