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08 February, 2017

CA Technologies reveals extent of payback for advanced agile and DevOps in APJ

Results from a new CA Technologies global study on agile and DevOps practices and their business impact have revealed that there is a ‘maturity gap’ in Asia Pacific and Japan (APJ). According to the research, only 29% of organisations in APJ have scaled agile beyond development, and only 38% have deployed DevOps widely across the organisation.

Advanced implementation rates may be low but awareness of the benefits are high. A significant number of organisations across APJ (82%) agree that agile and DevOps are critical to successful digital transformation strategies, and using a combination of both practices improves operational efficiency and customer satisfaction, and accelerates new business growth.

“It’s overwhelmingly clear that digital transformation is a stark reality that needs to be taken to task by every business for future readiness,” said Richard Gerdis, VP, DevOps, Asia Pacific & Japan, CA Technologies. “Our research has shown that organisations are very much aware of the fact that they have to be ‘built to change’ – meaning agile enough to adapt to changing market environments if they were to win in today’s application economy. However, we have found that advanced implementation of agile and DevOps are at very low levels in APJ, citing lack of skills and in-house knowledge, and security issues as top obstacles respectively.”

The study, Accelerating Velocity and Customer Value with Agile and DevOps, polled 1,770 senior business and IT executives worldwide, including 799 from across APJ, about their attitudes toward agile and DevOps practices and the impact they see it having on their business.

With the study showing a direct correlation between technology and tools to real business benefits, APJ organisations stand much to gain from broadly implementing agile and DevOps – particularly if they went a step further to combine them by adding DevOps to an agile environment.

Insights from the study showed that combining both agile and DevOps practices resulted in significant business benefits, and that together, there was an even greater impact. Compared to those that only use agile methodologies, the surveyed organisations in APJ that have adopted both agile and DevOps:

 Improved new business growth by an additional 86%
 Improved operational efficiency by an additional 65%, and
 Improved IT-related costs by an additional 135% compared to agile-only environments

When adding DevOps practices to an agile working environment, they found:

 A further increase of 27% in employee productivity;
 Improved customer satisfaction by an additional 59%, and
 An increase in customer experience for 78% of users who paired agile and DevOps, versus 53% of agile-only users

In fact, 76% of companies in APJ that used agile and DevOps together showed an advantage in employee recruitment and retention – a huge benefit when you consider the shortage of talent in IT and the costs associated with attracting and retaining the best employees.

“The results from our study are clear – pairing the DevOps paradigm with agile practices gives organisations of all sizes a competitive advantage with increases in employee productivity and satisfaction that is resulting in a loyal customer base,” said Rob Carruthers, Senior Director, Agile Management at CA Technologies, Asia Pacific & Japan. “Embracing a combined approach reduces cycle times and makes sure that execution is aligned to strategy, ultimately for customer benefit.”

The benefits of advanced adoption extend far beyond the purview of IT. The wider benefits available to the surveyed organisations in APJ included:

 A 35% improvement in time-to-decision (the time to act on new opportunities) for advanced agile users, compared to 27% percent for basic users;
 A 46% improvement in speed-to-market, for advanced DevOps users compared to 19% for basic users;
 Improvement in customer experience (witnessed by 91% of advanced agile adopters, and 87% of advanced DevOps users)

Source: CA Technologies infographic. Benefits from advanced agile and DevOps implementation in terms of percentages, displayed in a racecar framework.
Source: CA Technologies infographic. Benefits from advanced agile and DevOps implementation in terms of percentages, displayed in a racecar framework. View the complete Agile and DevOps: Accelerating Digital Transformation Results infographic.

Despite Singapore’s advanced economy and relatively tech-savvy business environment, the study showed that organisations in the country faced a similar ‘maturity’ gap, where, although 77% of firms reported having implemented DevOps in at least one area, only 27% have done so broadly; and while 91% of firms are using agile methodologies, only one-third have scaled beyond development. Compared to other APJ markets, Singapore further lags in scaling agile beyond IT. Singapore firms named security concerns, budget constraints, skills and tools integration, and organisational culture as the top core obstacles to fully leveraging agile and DevOps.

Interested?

View the Agile and DevOps: Accelerating Digital Transformation Results infographic

Read the TechTrade Asia blog post about 2017 DevOps predictions from CA Technologies

*Conducted by Coleman Parkes Research in May-June, 2016 and commissioned by CA Technologies, the survey included 1,770 senior business and IT executives from large enterprises, across 21 countries and 10 industry sectors.

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