How adopting low-code/no-code can boost company revenue
B2C businesses are no strangers to the digital world. From Ecommerce to gaming apps, digital transformation has enabled brands to grow and increase revenues based on exciting new technology income streams.
As B2B businesses embrace digital transformation, though slower than B2C counterparts, they're using low-code/no-code platforms internally to set up workflows, CX processes, inventory management, and even sales and marketing processes.
According to an article in HBR
Research by McKinsey & Company and the McKinsey Global Institute shows that digitization is having the same radical impact. In particular, our research shows how digitization can significantly hurt incumbent firms in many industries — depleting as much as half the revenue growth and one-third of earnings before interest and taxes (EBIT) growth of companies that neglect to embrace digital innovations. (Source: HBR)
The barriers to business expansion and revenue growth are shrinking as long as organizations are riding the digital transformation wave.
The cost of investing in low-code/no-code solutions
Uber, Amazon, Netflix are giving customers experiences they wouldn't have dreamed of just 5 years ago.
According to Forrester Research, the low-code market is here to stay as they estimated it will go up to $15.4 billion by 2020. (Source)
At most B2B companies, however, digital strategy is a sideshow. Initiatives are less likely to be anchored in customer needs and often falter from an insufficient investment. Only 10 percent of the B2B companies in our survey, for instance, said that digital was a top investment priority. When held off to the side, digital strategies often splinter into smaller initiatives that are too diffuse to gain momentum and too limited in scope to make a material difference. (Source)
Resisting digital transformation cost Blockbuster its business. Netflix saw the opportunity to move beyond movie rentals into digital streaming because, a limited number of videos available to rent meant capped revenue.
Failing to innovate left Blockbuster behind the 8-ball, and selling out to Dish TV for $234 Million in 2011.
Now, almost 8 years later, there is only 1, that's ONE Blockbuster that remains standing (in Bend, OR. USA). Ms. Vey said of her customers, “Sadly there aren’t as many of them that have been coming to the store regularly as there are people not coming back anymore.”
Revenue-boosting solutions boost ROI
GE (General Electric) is a great example of digital transformation. Spending billions of dollars and hiring thousands of software engineers, in 2015 GE was at the top of its digital game, or so they thought. Today they have become significantly more strategic.
Strategic shifts like that are hard. They require gaining management consensus around a shared vision, challenging time-honored institutional truths, and learning new skills and practices on the fly, but it can make a huge difference. (Source)
Ambitious goals are fine, but as GE has demonstrated, strategic progress is a key factor in creating sustainable revenue streams.
Moving up the digital curve matters because B2B digital leaders turn in stronger financial performances.
Top-quartile B2B players generate 3.5 percent more revenue and are 15 percent more profitable than the rest of the B2B field (Source)
There are always challenges along the way when adopting new technology and creating applications. Redefining KPIs and adjusting processes create improvements that lead to bigger profits.
McKinsey & Company defines ten guiding principles that have emerged as companies move through each phase of transformation. Low-code/no-code solutions are helping to decrease the learning curve of implementation and time to deployment, contributing to emerging revenue streams.
There's the view that the digital transformation and low-code/no-code platforms are disruptive. True. Pioneering endeavors are disruptive, but not all disruptions lead to failure.
Netflix and Amazon have implemented microservices architecture and have seen a great deal of success in their business models. Enterprises looking to make the shift from a monolithic approach to that of microservices can do so with low-code platforms. They have the ability to create web applications that are modular in nature. It allows an enterprise to create a suite of micro applications that can integrate with each other using services that are exposed by each application to one another. (Source)
Enterprise or small Saas, revenue comes from innovation.
Six years ago, and backed by $3.25 million in funding from angels, Tynker co-founder and CEO Krishna Vedati saw a need to help build our future developers. There are some kids that want to learn to code, but programming languages can be too complex, and boring, for young minds. Vedati thought of a way to use a low-code/no-code application to teach kids a basic way to learn to code.
“What we found is that for Elementary and Middle school students, traditional programming (with syntax) is boring and complex,” explains Vedati. “That is probably why programming hasn’t been introduced to early learners in the past. So to reduce this complexity, we created a ‘visual’ programming language that focuses students on learning to build logic into an application,” he says.
The visual programming “language” in Tynker involves having kids grab visual code blocks which say things like “on start,” “move 10 steps,” “next costume,” “if on edge, bounce,” and more, to give you an idea. They’re the bits and pieces of an animation or game, which, when strung together, can tell a story.
“In this way, [students] learn the logic and structure of programming and can see the results without having to write thousands of lines of code – boring even to some adults,” says Vedati. (Source: Techcrunch)
Later they introduced the program to high-schoolers, transitioning from visual basic to code. These are our new citizen developers and our software engineers.
Look to low-code/no-code solutions to solve problems
Low-code/no-code allows SMBs and enterprises to develop multiple income streams by focusing on customer, or stakeholder, problems that need solutions.
Due to the presence of a large number of low-code development platform vendors, North America is expected to have the largest market size in the Low-Code Development Platform Market. Factors, such as the rising demand for software automation and innovative applications, ease of development of web and mobile apps, and low cost of development and the easy-to-deploy feature are expected to be driving the adoption of the low-code development platform across the globe. (Source)
Coactive's IRAD (Interactive Rapid Application Development) technology allows companies to not only create applications that can improve most business processes but can build applications to diversify revenue streams, in a few weeks. Once applications are up and running, Coactive’s interactive technology means applications can be changed, updated or revised with little to no downtime.
The outcome is too attractive to ignore
Some 80% of companies that have undergone digital transformation efforts reported increased profitability, compared to 53% of other companies. (Source)
GE, Virgin Media, and others use enterprise applications that are taking businesses to new levels by integrating processes and connecting stakeholder, expanding their reach to new customers and opening new revenue streams.
The company now expects $12 billion in digital revenue in 2020, compared with $15 billion under the old definition. GE's total revenue hit nearly $124 billion last year. (Source)
GE's $12 billion digital revenue stream took planning, shifting and even a "time out" to adjust and realign. Their foresight, diligence, and willingness to pivot when things weren't working, is what it takes to keep up with the fast pace of digital transformation.
Done right, adopting low-code/no-code applications stimulate opportunity for competitive advantage and can create new opportunities in the digital marketplace.