Demanded: CEOs with technology in their blood
In order to successfully lead a company into the digital age, CEO and other senior management positions should be filled by people with a technological background. This is the key finding of a Europe-wide executive study conducted by Vanson & Bourne on behalf of VMware.
71% of executives in the EMEA economic region believe that it has added value for companies to promote employees who have a good understanding of technology through previous experience (e.g., as app or software developers) to senior positions. According to the study - which surveyed 2250 decision-makers in organizations with at least 500 employees - technologically savvy executives have a positive impact on the efficiency of the company (50%), increase the potential for innovation (40%) as well as the company's success (42%) and provide a better customer experience (37%).
Respond quickly to changing work situation
The respondents' statements are particularly interesting against the current backdrop - the survey was conducted in March and April 2020, when the pandemic in Europe was at its peak. According to the study, digital transformation - through the ability to modernize the business model using technology - makes an important contribution to companies adapting more quickly to market dynamics and changing business fundamentals. For executives, the benefits of modern applications in particular play a big role in improving their company's performance and resilience: In addition to the reliable operation of IT systems (37%), companies benefit most from modern applications that enable employees to work from home or on the road (57%). More than a third praised the ability to respond adequately to the changing work situation (39%).
No user experience without modernization
In fact, more than three-quarters (79%) of application developers and IT leaders in Europe believe that without successfully modernizing their applications, companies will not be able to deliver a superior user experience to their customers. This is confirmed by business executives worldwide: 88% of respondents to a Forrester study believe that modernizing the application portfolio will improve the user experience - and have a direct impact on revenue growth. In this aforementioned study, also commissioned by VMware and conducted by Forrester Consulting. "Improving Customer Experience and Revenue Starts With the App Portfolio." 614 CIOs and senior vice presidents from North America, EMEA and APAC were surveyed. They come from companies with more than 2,500 employees in the financial services, healthcare, telecommunications, retail and public sectors.
„CEOs should have technology in their blood if they want to succeed in the digital age"
"Never before have CEOs and executives faced so many and profound changes. Those with a technology background and who know how modern applications can help a company respond to changing market conditions - have a clear advantage. A majority of business leaders agree that technology leadership will be the key to success," said Ed Hoppitt, Director Apps & Cloud Native Platforms VMware, EMEA. "From the many millions of workers and students currently working and learning from home, to governments developing apps to track contacts in a matter of months, to banks needing to scale in the short term to provide the necessary cash flows, to enterprises and retailers looking to digital platforms virtually overnight, this pandemic has driven a decade of digital transformation in a matter of months. Critical to customer loyalty and future business success is the ability to develop crucial business apps that provide relevant information and timely and straightforward services to consumers. Executives should have technology in their blood and rely on a software-based digital platform - the recipe for success to emerge stronger in the end."
Rapid app development in high-performance companies
The study results reveal a competitive advantage from continuous development and deployment of new apps and services, as high-performing companies in Europe have a more efficient and effective app development pace: two-thirds (66%) of newly developed apps make it to production in high-performing companies, i.e., those with annual revenue growth of more than 15 percent, compared to 41% in low-performing companies. At 70% of high-performing companies, apps reach production maturity within the planned timeframe, while only 41% of low-performing companies do the same.
Source: VMware
