In the face of rapidly evolving technology and a constantly changing business landscape, companies must be able to adapt quickly to remain competitive and achieve radical growth. The ability to rapidly execute transformative changes across multiple parts of a business is often referred to as “compressed transformation,” and it’s becoming increasingly common in today’s unpredictable world.
In a recent global study, it was found that half of all companies have had to undergo multiple transformations in the past two years or complete a single large transformation at a faster pace than ever before. To succeed in this challenging environment, companies must be able to quickly adapt to new circumstances, embrace new technologies, and remain flexible.
One of the most effective ways to achieve compressed transformation is through high interoperability. Interoperability refers to the ability of different systems, technologies, and processes to work together seamlessly, enabling companies to extract value from chaos and accelerate their growth.
Companies with high interoperability are 11% more likely to sustain compressed transformations. This is because interoperability integrates everything from business applications to critical IT systems, simplifying complex inputs into a single source of data truth. This enables organizations to pivot quickly and take advantage of new opportunities.
In addition to sustaining compressed transformations, high interoperability also leads to growth. Companies with high interoperability have grown their revenue six times faster than their low-interoperability peers, and are set to unlock an additional five percentage points in annual revenue growth.
So how does interoperability create such far-reaching value? At its core, interoperability connects technology, people, and processes. This inherent synergy improves several value drivers:
- Transparency: Interoperability unites data silos, allowing for greater data visibility throughout the enterprise and better decision-making.
- Agility: Interoperability better manages dependencies, providing the agility to transform multiple business functions quickly and simultaneously. It improves the enablement of the right IT infrastructure needed for successful transformations by 13 percentage points.
- Productivity: Interoperability eliminates the risk of multiple people working on the same task and streamlines data sharing. It also reduces the time spent switching between applications, which can account for nearly two hours of every employee’s workday.
- Experience: Interoperability enables holistic, real-time access to customer data stored across systems, allowing for a laser focus on customer needs. Highly interoperable companies are 15% more likely to improve customer experience (CX) when it’s a priority.
- Scalability: Interoperability creates in-context connections, ensuring that cutting-edge innovation reaches across the business faster, increasing the ROI by 7%.
To improve interoperability, companies must establish a clear and strong interoperability strategy that addresses all aspects of the business, from technology to processes and people. This includes selecting and adopting tools and technologies that foster interoperability, and training employees to work effectively in an interconnected environment.
Interoperability also requires a focus on standardizing business processes and data management. This involves adopting industry standards and best practices for system integration, as well as implementing policies for data governance and quality.
Finally, the use of application programming interfaces (APIs) can significantly improve interoperability by connecting disparate systems and enabling seamless data exchange. By standardizing the way in which systems interact with each other, APIs can simplify the integration process and improve interoperability.
In summary, interoperability is a critical enabler of compressed transformation and radical growth. By improving interoperability, companies can extract value from chaos, accelerate growth, and unlock new revenue opportunities.