History has shown that the advent of revolutionary new technologies brings about great disruption to existing businesses and business models, while at the same time creating new, larger, opportunities in virtually every industry. We are now in one of those times, and it is being driven by the accelerating adoption of new fundamental technologies—in mobile devices, in social networking, in cloud computing, and in new ways to harness the power of very large data sets, or Big Data.
As a result, virtually all businesses need to rethink how they engage their customers and partners, and build new digital capabilities and business models. Many traditional industries are being redefined by digital upstarts that use mobile applications backed by sophisticated algorithms made possible by the power of the cloud and Big Data. This wave of disruption will accelerate as sensors get incorporated into every imaginable product or thing. Responding to these opportunities will require enterprises to rethink how they do product development and how technology and business can reinforce each other in more agile ways. This is not just a technology challenge but a cultural mindset challenge, a major transformational challenge for many businesses.
As inevitable as these forces are, enterprises cannot walk away from their existing systems and applications. These systems are and will remain critical to running their businesses for many years to come. Business transformation therefore requires building new capabilities while enhancing, simplifying, and taking cost out of existing systems.
Continue reading Joe Tucci’s letter to shareholders.