As digitalization in business gains momentum, businesses are looking for agile, easily adaptable IT solutions to win and hold the competitive edge.
According to Gartner, two-thirds of all business leaders believe that their companies must pick up the pace of digitalization to remain competitive. To leverage the potential of digital collaboration and productivity at all levels of the organization, companies must adapt their IT strategy to changing business needs. Unfortunately, Gartner also reports that as of 2018, 90% of organizations lack both a modern application integration strategy and an execution ability, resulting in unnecessary integration disorder, complexity and cost.
In 2013, Gartner pointed out that 65% of organizational investment budgets were allocated to maintenance of existing systems, while 25% and 10%, respectively, to growing and transforming them. Even back then. Gartner predicted a shift towards an expected target allocation of 40%, 35% and 25%, respectively.
To describe this coming shift in IT priorities appropriately, Gartner introduced the notion of a pace-layered application strategy. This strategy includes three types of IT systems: systems of record, systems of differentiation and systems of innovation.
The effective execution of this model requires more than simply focusing on systems of record. Organizations need to effectively deliver and adapt systems of innovation and difference as well, which means that off-the-shelf solutions are no longer enough these days.