Over the past few decades, technology has proven that it can solve many complex business problems and thus significantly improve the performance of most companies.
In 2023, it’s projected that $4.4 trillion will be spent on information technology, with digitizing the end-user experience and scaling data and analytics as the top reason for investment.
As a company that’s built custom software to help businesses solve complex operational problems for over 10 years, we’ve observed that most companies fall in one of three stages of digital evolution: Siloed, Connected, and Integrated.
The reason to understand which stage your business is in is simple: risk management. This risk can be minimal, like unproductivity, but it can also be serious, like data variance and revenue loss.
Quickly, here are the 3 stages of technical evolution:
At Stage 1, or the Siloed stage, you’re using multiple off-the-shelf solutions and manually operating them. Stage 1 is the most common amongst businesses, likely because it’s the least expensive. But toggling through numerous solutions is time consuming and can impede productivity.
In Stage 2, or the Connected stage, you’re leveraging automation through API integration, which is a fancy way of saying that you’ve configured your software to communicate with one another. The major drawback here is that it’s architecturally fragile which can put your data at risk.
And finally, there’s Stage 3, or the Integrated stage, which is the development of custom software that addresses the unique needs of your business. Top performing companies tend to be at this level, but it requires a commitment.
To understand the implications of each stage, take this 3-minute quiz. You’ll receive instant results and know exactly what’s at stake for your business in its stage of digital evolution.