Surviving Enterprise Darwinism

In this blog post, you will get to know what is Enterprise Darwinism, how it impacts you and the survival of your company.

“Survival of the fittest”, the phrase that Herbert Spencer introduced after reading Charles Darwin’s theory of natural selection, can be applied to businesses trying to survive in today’s fast changing environment. The idea of Enterprise Darwinism is essentially the process of natural selection in which the businesses that can’t or won’t adapt quickly and efficiently to the digital transformation age will be put out of business by companies that do. It is no longer about the big eating the small, but the fast eating the slow. We’ll list the tools needed to survive in this landscape later in this post but first, let’s summarize the major challenges.

What are the Challenges?

The barrier to entry is evaporating

The barrier to entry is evaporating faster and faster to the point where it’s almost non-existent. The digital age has allowed small businesses and startups to enter the game and cause major disruptions.

The lack of resources that prevented small players from entering the game has become less of an issue. A new idea can be developed in a garage using open APIs, free developing tools, and open source components. We’ve seen it happen in the financial sector, retail, and transportation. No company is too big to fail at this point if they fail to adapt

The Internet and the rise of Smart devices

The business world has changed dramatically in a very short span of time as a result of the digital transformation age. Businesses are under enormous pressure as the customer experience has completely changed.

The rise of smart devices has raised the consumer’s expectation of how businesses deliver their good and services. They expect something personalized. Everything needs to be dynamic, always on, and always mobile.

IT Delivery Gap

There is an increased need to deliver better mobile applications for customers, connect with partners in a more efficient way, and create better processes to help employees be more productive. In response to this enormous pressure, businesses are turning to IT to help them adapt quicker to the digital environment. Businesses are constantly making demands to get their applications to work well and also be integrated with other applications and data sources.

CIOs have to figure out how to make the cost of operations lean and efficient while at the same time delivering more to the business and always ensuring a positive ROI.

Embracing the Digital Transformation Landscape

The reality is that the old IT model is no longer working. It has not evolved fast enough to keep up with the digital transformation age. Software is used in every corner of the business to perform almost every function. The underlying issue is how to integrate all these different pieces efficiently to unlock the value in them by enabling developers to create apps, better reports, and business processes. The key to surviving Enterprise Darwinism is to become a “Composable Organization”.

How does a business become a “Composable Organization”?

The API-Led Connectivity Approach

The foundation of this approach is based on focusing on the reusable capabilities the business can exploit. The idea is to have these capabilities as composable APIs that can be accessed and pulled together in different ways to experiment, evolve, and drive innovation.

This can only be done by decentralizing access and value creation throughout the business. That means people need to be allowed to self-serve, grab pieces of information and bits of functionality that they need, and allow them to build new experiences.

The API-led connectivity approach takes a three-layered model with a:

  • System layer APIs
  • Process layer APIs and
  • Experience layer APIs

These API layers expose, orchestrate and supplement the data, model processes, and help you define innovative customer experiences. This ties into the next point which is to develop an Application Network

Building an Application Network

The result of the API-Led Connectivity approach of transforming capabilities as reusable APIs is an application network. It is the growing connectivity tissue that connects all these different APIs and structures them into a System, Process and Experience layers.

The important information is available on the application network as discoverable and easily accessed. The application network provides an infrastructure for information exchange by allowing applications to be “plugged” into the network.

Center for Enablement (C4E)

Business needs to adopt a new organizational capability that allows the business to have self-serve access to IT development capabilities and data assets without compromising IT and data governance.

This means that IT services and capabilities can be easily and readily consumed by non-technical employees and partners without much of the underlying complexity of IT. We call this organization a Center for Enablement or C4E.

A Center for Enablement has Top Three benefits that will help the business survive in the digital transformation age:

1. It promotes a cost-effective and agile IT landscape
2. It improves the relationship between IT and the rest of the business
3. It facilitates the creation of digital and mobile Strategies

Conclusion

Businesses today are starting to recognize that the path to succeeding in a competitive market requires deploying technological solutions efficiently and effectively. Embracing enterprise Darwinism calls for a change in culture that leads to shifting away from the centralized IT model. Taking an API-LED connectivity approach to become a composable organization through the use of an application network. And establishing a C4E that enables different LOBs to deliver their own projects.

Uncover the possibilities and create opportunities for your business by having these solutions powered by MuleSoft and implemented by NEWTOMS.

Winston J. Rivero Jr.

Winston J. Rivero Jr.

Winston J Rivero Jr. graduated in two careers: Finance & Marketing from Georgia State University in 2012 – He's currently the Director of Business Development in North America and leads the Content Marketing Strategy for NEWTOMS