With global uncertainties easing, companies are redoubling IT investments as they anticipate revenue growth, says a recent Gartner study. The study highlights software as the main rising market in 2020, achieving a growth of 10.5%. In this context, associated with new technologies that emerge at an accelerated pace and business models that evolve continuously, it becomes imperative that the software industry is the great protagonist of this story.
In Brazil, Brazilian organizations are aware of the importance of this moment. According to research commissioned by SAP, locally, 56% of companies intend to increase their revenue by up to 10% as a direct result of digital transformation in companies. And software developers and integrators have a crucial role in this process, as they will be largely responsible for supporting this innovation. The software industry must first transform itself to then offer the digital transformation to its end customer, at the end.
Digital transformation in software companies: grow or die
It may seem alarming, but the truth is: either the software company adheres to this technological revolution that is happening more and more quickly, modernizing itself and accompanying the new industry, or it will be in the middle of the way.
The challenges are many and mainly involve 3 pillars:
1. Technological innovation: ranging from the way the company used to develop its software (going through language, cloud and on premise model, use of containers and microservices, etc.) to the current process, which includes the adherence of the software to trends such as Big Data, Internet of Things, Machine Learning, among others.
2. Business model: which evolves from a model of licenses to a monthly subscription, changing the cash flow of the software manufacturer and the end customer, since it leaves a Capex model for Opex, in addition to requiring new sales techniques SaaS, like creating a real sales machine.
3. Speed: the agility that the company will have to get ahead and conquer the market becomes essential. And usually the entrepreneur comes up against the available budget to invest in growing. This is where the universe of investors (Venture Capitals, Angels, etc.) comes in. Growing with just pocket money has become much more difficult because the market doesn't have that time anymore – either it will be swallowed up by a large corporation or the need will have already changed by the time the company reaches the necessary scale and it will be obsolete.
There is yet another aggravating factor: how to conduct this process? This layer, that of the software maker, is lacking in content. Today, there is no channel or event that speaks directly to these companies.
Nor is there a magic solution for leveraging the digital transformation in companies, but a set of actions that go through the commercial pillars, technical capture and business acceleration. By adhering to these guidelines, software companies and integrators acquire, in the same proportion, greater competitive advantage, alignment with new digital technologies that contribute to improving the development of products and services, in addition to greater security and agility to make decisions on the day to day.
We are actually talking about a process, which must be constant, but also very fast. As a reference: the entire evolution history of the last ten years must now occur again, but in just three years, and so on.
Brazil's maturity in digital transformation
Brazil and Latin America are always a year or two behind the United States. However, as technology and information are increasingly globalized, this delay tends to decrease more and more. The Brazilian infrastructure is still a bottleneck, with delays in terms of connectivity, 5G, 4G, which take longer to arrive and which are responsible for enabling all these new technologies associated with digital transformation.
Entire industries will be rewritten. The logistics segment is being reinvented through applications, the banking area is undergoing a strong digitalization process, probably the next ones will be the insurance, health and real estate sectors. We are in a moment of digital transformation of traditional markets. And Brazil, as the great potential market that it is, becomes one of the biggest bets in the world.
Ricardo Brandão is CEO of Sky.One , a startup specializing in the development of platforms that automate and facilitate the use of cloud computing, and sponsor of Sky One Connect.