Capgemini-通过软件产品创新开启增长前沿（英）-2023-20页-WN9.pdf

UNLOCKING THE GROWTH FRONTIER THROUGH SOFTWARE PRODUCT INNOVATION群内每日免费分享5份+最新资料 群内每日免费分享5份+最新资料 300T网盘资源+4040万份行业报告为您的创业、职场、商业、投资、亲子、网赚、艺术、健身、心理、个人成长 全面赋能！添加微信，备注“入群”立刻免费领取 立刻免费领取 200套知识地图+最新研报收钱文案、增长黑客、产品运营、品牌企划、营销战略、办公软件、会计财务、广告设计、摄影修图、视频剪辑、直播带货、电商运营、投资理财、汽车房产、餐饮烹饪、职场经验、演讲口才、风水命理、心理思维、恋爱情趣、美妆护肤、健身瘦身、格斗搏击、漫画手绘、声乐训练、自媒体打造、效率软件工具、游戏影音扫码先加好友，以备不时之需扫码先加好友，以备不时之需行业报告/思维导图/电子书/资讯情报行业报告/思维导图/电子书/资讯情报致终身学习者社群致终身学习者社群关注公众号获取更多资料关注公众号获取更多资料FOREWORD Today,software products are an integral part of your company:a critical component of product functionality,customer experience,new services,and revenue generation.They have become the primary touchpoint to take the pulse of your customers and a source of continuous innovation which is crucial to thrive in todays rapidly evolving technological and user landscape.Naturally,enterprises want to maximize the value of their software product portfolio.However,many often struggle to deliver on this.While existing and legacy products generate significant revenue for enterprises,their maintenance consumes considerable resources,depleting R&D budgets and limiting opportunities to create new and modernized products that can lead to long-term growth.“CTOs and CIOs of scaled enterprises often spend 60-80%of their R&D budget on just the maintenance of their existing and end-of-life products and seek to strike the right balance between the funds required for innovation versus keeping the lights on.”,according to Everest Group.This sub-optimal allocation of the R&D budget is a symptom of R&D planning difficulties.Developing a cohesive R&D plan is complex because many factors need to be reconciled.These include a bloated portfolio comprising multiple software products with overlapping functionality,a deficit of software engineering talent,users reluctance to migrate to new products,and the need to continue to cater to their legacy customer base.The key to resolving these difficulties is greater visibility into the software product lifecycle across the three phases innovation,development and enhancement,and end-of-life.It is the critical starting point for enterprises to make better business decisions,gain a competitive edge,and improve product efficiency.The impact of getting it right is transformative.An industrial technology conglomerate with a U.S.and EU presence faced fragmented product challenges,impacting innovation and efficiency.They partnered with Capgemini Engineering and,using our“in-house Software Lifecycle Maturity methodology,”increased development efficiency,centralized sustenance,and reduced operational costs by 10-15%.These savings allowed the company to pursue new product innovation and greatly accelerated their product roadmaps.Results like these are not outliers.This viewpoint by Everest Group,supported by my team at Capgemini Engineering,examines how to orchestrate a comprehensive R&D strategy for your company,align resources and capital for new products,enhance existing offerings,and modernize legacy systems.This strategic allocation ensures effective outcomes and ROI assessment,paving the way for a sustainable and profitable future.We hope you find this whitepaper enlightening and exciting.Jiani Zhang EVP and Chief Software Officer,Capgemini EngineeringCopyright 2023,Everest Global,Inc.All rights reserved.This document has been licensed to Capgemini Engineering Unlocking the Growth Frontier through Software Product InnovationNishant Udupa,Practice DirectorMayank Dawar,Senior AnalystC|licensed to Capgemini EngineeringIntroduction 03Understanding the Software Product Life Cycle(SPLC)04Burgeoning challenges inhibiting innovation 08Implications for enterprises11Conclusion163I|licensed to Capgemini EngineeringR&D spending on engineering software products is poised to grow at 9%CAGR from 2022 and touch the US$650 billion mark by 2025,with the Independent Software Vendor(ISV)and internet,media and entertainment,BFSI,and healthcare and medical devices verticals driving the spend.The importance of software products is increasing with the proliferation of platform-based business models,which continue to dominate both product-and services-centric verticals.With software emerging as the key customer touchpoint across industries,enterprises should keep innovating on software products to stay competitive in the market and serve rapidly evolving user needs.Oftentimes,however,despite knowing that innovation fuels growth and is paramount to staying ahead of the competition,enterprises struggle to craft a coherent R&D strategy.In fact,enterprises often spend way too much on continuing existing or legacy products,which drains R&D budgets and leaves little room for innovating and modernizing products to steer the top line in the medium to long term.CTOs and CIOs are,therefore,actively looking to find the right balance between the budget required for innovation versus maintenance.In this research,we explore and answer the following questions:What is Software Product Life Cycle(SPLC),and why do enterprises need to understand the SPLC stage of their software products?Why do enterprises get caught up in innovating software products versus maintaining them?What are the common roadblocks inhibiting enterprises from innovating?How can enterprises fine-tune their R&D strategies to foster innovation and future-proof their businesses?UNLOCKING THE GROWTH FRONTIER THROUGH SOFTWARE PRODUCT INNOVATION|licensed to Capgemini EngineeringUnderstanding SPLCSPLC refers to the entire lifespan of a software product that begins as soon as the market realizes the need for the software and ends when it is no longer supported.It involves product ideation and design,prototype creation,solution architecture,testing,deployment,rollout,performance management,and product sustenance and maintenance.All these activities fall under three broad stages of SPLC:innovation,development and enhancement,and end of life.No enterprise wants its software products to become obsolete and reach the end of their life cycle before the anticipated time.Thus,to make better business decisions about when to update the software,gain a competitive edge by accelerating workflows,optimally adjust costs to align with budgetary requirements,and improve product efficiency,it is crucial for enterprises to understand at what SPLC stage their product is.Exhibit 1 provides a snapshot of the different SPLC stages.EXHIBIT 1Phases within SPLCSource:Everest Group(2023)Technology adoptionHighMediumLowTime-to-marketHighHighLowCost involvedHighMediumMediumUser baseLowHighMediumInnovationEnd-of-lifeDevelopment and enhancementUNLOCKING THE GROWTH FRONTIER THROUGH SOFTWARE PRODUCT INNOVATION|licensed to Capgemini EngineeringBelow we take a closer look at the three stages and the key enterprise focus areas for each.Innovation:During the innovation stage,the software product has not yet entered the market.This stage requires significant capital investment and R&D without any revenue generation.It involves planning and requirement analysis,designing,software development,testing,beta-product release,and final product launch.Enterprises typically focus on aspects such as product design,user experience,quality,and time-to-market,during this phase.Speed has become the new currency of the software product business.Time-to-market and an interactive user experience can act as catalysts in product commercialization.Delays in innovating new software products based on emerging technologies can often result in missed market opportunities.Development and enhancement:To keep pace with evolving consumer expectations and ensure a great user experience,software products require continuous maintenance and enhancement,which fall under the development and enhancement phase.During this stage,a product receives version upgrades in line with market needs,and the user base of the software product picks momentum and reaches its peak.At this stage,enterprises focus on handling the complexity of requests for enhancement,which continues to create consumer value without impacting the products fundamental architecture.The rise of automation,AI/ML,and DevOps has acted as a catalyst for the software development process.Advances in the software development methodology from waterfall to agile and from siloed DevOps to end-to-end DevOps have changed the entire software development landscape,with shorter time-to-market and increased scalability.End-of-life:No product can remain in a prolonged growth stage or last forever.Eventually,a software product enters its end-of-life phase,when it is no longer scalable,and the underlying technology used to build the software cannot be leveraged further to enhance the product.This is when the products revenue begins to decline,and its user base reaches a saturation point and starts to fall.In this phase,enterprises begin to gradually phase out the product from the market,stop releasing further software updates,and optimize the costs of maintaining the product in the market.The key activities and enterprise priorities in each of three stages are listed below.We also explain the life cycle through a case study of Adobe LiveCycle.Users reluctance to migrate from aging software due to their familiarity with the product often forces enterprises to continue with legacy and monolith software over an extended period,leading to an astronomical rise in the maintenance budget for end-of-life products.UNLOCKING THE GROWTH FRONTIER THROUGH SOFTWARE PRODUCT INNOVATION|licensed to Capgemini EngineeringModernizing legacy products through transformation Innovation fuels business performance and growth across industries.Given the rapidly changing technology landscape and consumer expectations,enterprises realize the need to foster innovation in software products and are thus investing heavily into R&D to stay ahead of the competition.Global ER&D spending on software products grew strongly at 10.2%CAGR from 2017 through 2022 to almost touch US$500 billion in 2022.This trend is likely to continue in 2023 despite recessionary headwinds,with 96%of engineering enterprises planning to increase their R&D spending or maintain it at 2022 levels.1 InnovationDevelopment and enhancementEnd-of-lifeActivities Ideation and designPrototype creationUI/UX ideationSoftware product developmentTesting and certificationDeployment and rolloutTechnical support and troubleshootingProduct upgradesUser data analysisTesting and certificationUI/UX updatesPerformance managementDevSecOpsCritical defect fixingSustaining and supporting end-of-life products Feature and UI/UX improvementsSecurity updatesEnterpriseprioritiesIdentifying and serving customer needs Onboarding skilled talent to drive innovation and efficienciesAccelerating the time-to-marketProduct quality and complianceAccelerating the time-to-marketReleasing product updates to add new features and enhance software securityProduct quality and complianceOnboarding skilled talentOptimizing enhancement costsOptimally handling enhancement requests so that they do not change the original products fundamental architecture Maintaining end-of-life products to serve the needs of the legacy products customer baseMinimizing the cost of maintaining end-of-life software productsCase in point:Adobe LiveCycleAdobe introduced the LiveCycle software in 2004 to streamline the creation and publishing of PDF forms for enterprises and government agencies.The software had capabilities such as capturing and storing form and document data and features including the drag-and-drop functionality,command buttons,and checkboxes.Following the products release,Adobe released multiple software updates to the LiveCycle suite to enhance capabilities around user experience,business process management,data security,information processing,and forms automation,among others.By September 2008,LiveCycle products had become one of the highest revenue-driving software products for Adobe.Adobe LiveCycle PDF forms provided a great user experience on desktops and laptops,but it was not able to match it on mobile devices,due to which its revenue started to decline.Adobe discontinued core technical support for Adobe LiveCycle in March 2018 and offered extended maintenance and support through March 2020.1Everest Group Key Issues Survey 2023UNLOCKING THE GROWTH FRONTIER THROUGH SOFTWARE PRODUCT INNOVATION|licensed to Capgemini EngineeringThe market is inundated with advanced technologies such as AI/ML,cybersecurity,and blockchain,and enterprises that come up with innovative and upgraded software products at a fast clip can unlock new business opportunities and enhance customer experience to get an upper hand in the market.Legacy software products often fail to meet these objectives and also pose challenges such as high maintenance costs and security risks.Modernizing or transforming them is necessary to address these challenges,stay competitive,and enable innovation by providing new features,better performance,integration with new technologies,and improved security and compliance.Exhibit 2 shows where this transformation phase fits in the SPLC.Enterprises typically consider modernizing their legacy products when older software versions become prone to the following problems:Dwindling customer interest and declining user baseIncreased vulnerability to cybersecurity threatsLack of scalability and inability to accommodate new features and capabilities,resulting in missed market opportunitiesMobility issues and excessive dependency on hardware,that is,the software can only be accessed through mainframes within physical premises Outdated technologyCan no longer support modern technological demandsEXHIBIT 2The transformation phase in SPLCSource:Everest Group(2023)End-of-lifeDevelopment and enhancementInnovationTransformationUNLOCKING THE GROWTH FRONTIER THROUGH SOFTWARE PRODUCT INNOVATION|licensed to Capgemini EngineeringThe billion-dollar question:innovate or maintain or modernize?Enterprises have three options when considering where to channelize their R&D dollars:Innovate new and disruptive software products to create additional revenue streams Develop and maintain legacy products that continue to act as a cash cow for now but may become obsolete in the long termModernize legacy software to accelerate time-to-market and shift economies of scaleEnterprises often end up focusing on the short-term business impact of software products rather than their long-term value,leading to the misallocation of R&D funds toward maintaining legacy software products.This misallocation translates into limited budgets for innovating on new products and modernizing legacy software,eventually resulting in a software product portfolio that is skewed toward end-of-life products.Exhibit 3 lists the factors that make it difficult for enterprises to choose the path they should take when considering whether to innovate versus maintain versus modernize.Burgeoning challenges inhibiting software product innovationWhile the benefits