To an average person, Enterprise software may not sound exciting, it may get so many founders and investors excited when the total annual revenue is projected to reach $438 billion dollars in the next three years.
It’s seems still the same as it was before 20 years, when looking at the types of software enterprise organizations are investing in, with money flowing freely into categories like CRM and other database management systems.
Digital Transformation: The Time Has Come
Digital Transformation is far enough from a new concept. It was trending in the early internet days, then again in the late 2000’s and over the past few years, it once again gained momentum. Huge number of organizations are undergoing a digital transformation across all verticals, at a pace that was never experienced before.
Legacy companies like Ford have to change their identity, even going as far as declaring themselves a software company. This isn’t the thing they thought at start and wanted to do; but it is something they have realized over the time, they have to do if they want to survive.
The tools, software, technology and systems they previously relied on will have to be entirely rejuvenated from the top to bottom, as large organizations started the process of this digital transformation.
Digital Transformation: The Opportunity
Looking at the industry as a whole, the opportunity for the multi-trillion dollar will be for the companies who can develop these new software tools to help traditional enterprise organizations make this digital transition and solve their core problems such as fragmented data.
Ken McElrath, CEO of Skuid, discussing the true scale of this opportunity, stated in a recent Forbes interview, “Enterprise apps should not emphasize on people to think like machines, spending large amounts of time on software research, documenting requirements, sourcing vendors and writing code.”
But, McElrath wanted the apps to imitate the humans activities and learn who use them and ultimately empower everyone to thrive in today’s digital world.
Digital Transformation: The Problems to Solve
With trillion dollar potential comes trillion dollar problems. Here are some of the top challenges that digital transformation software will need to address:
UX: In the past, when it came to a clunky looking user interface, it was accepted that, well, that’s just what enterprise software is. Today, however, that’s starting to change, and the consumerization of business software has begun.
That old clunky user interface is no longer acceptable, and employees are expecting the same quality experience they receive for their business software as they do their personal software.
Development: While personalities like Mark Zuckerberg said that everyone should learn to code, we know that not everyone will. The ability for anyone to develop their own software stack without the need to know how to code will be critical in this transformation process.
Citizen developers, as they are referred to now, will become more and more relevant and the age of “no code and low code” will be here to stay.
Fragmentation: The enterprise software industry remains complex and highly fragmented. On average, an enterprise organization today has nearly 400 different pieces of software it relies on, according to a recent IDG report.
This level of fragmentation is leading to data quality issues which prevent organizations from developing truly actionable insights from their data.
“Trying to ‘defrag’ all data enterprises mine and unify it into a seamless app experience is not only expensive, it’s a recipe for bad customer experiences, low user adoption rates, slower sales cycles, and painful and disjointed workflows that don’t match a company’s business processes. All of this keeps people from thriving in the digital enterprise and has a massive impact on both costs and revenue.” McElrath told on Speaking about just how big of a problem this has become.