Ahmed Mahcer, Journal du Net
To survive in an ultra-competitive economic environment, integrators must more than ever think about innovation, verticalization, and cloud.
The software publishing, IT services, and technology consulting market is doing well in France. Estimated at 52.1 billion euros in 2016, it is expected to grow further this year. However, IT integrators are far from being able to rest on their laurels. “Mutato, ergo sum”: “I evolve, therefore I am”. To survive in an ultra-competitive economic environment, integrators must more than ever think about innovation, verticalization, and cloud.
1. THINK INNOVATION
It cannot be repeated enough: the end customer must remain the priority of an integrator. To achieve this, the latter must anticipate their expectations without necessarily relying on publishers. Technological innovation is too often considered the preserve of large publishers. This is false. Integrators can and should foster an approach focused on innovation. Capturing the latest trends, tracking market developments, being ready to welcome new developments… These are aspects that should be integrated into their strategy. Why not consider setting up an R&D center dedicated to innovation? This would be an opportunity to move beyond an overly operational vision of the business. If the budget and time do not allow it, an integrator should at least establish a schedule for participating in workshops and webinars showcasing the latest innovations from publishers. Failing to integrate an innovation dimension into their strategy risks falling behind and losing market share.
2. THINK VERTICALIZATION
Verticalization, that is organizing the offer by sectors or client industries, is a good solution to capture the maximum opportunities and strategically develop their client portfolio. Major publishers offer generalist solutions that are rarely suited to niche markets and industry specializations. Each sector has a specific context and constraints, making it essential for an integrator to address their challenges in a targeted manner. In the agrifood sector, for example, industry-specific issues (supply chain hierarchies, client/supplier RFA management, or total traceability from field to plate) are extensive and inherently require a verticalized approach. These particularities are numerous, making logistics a crucial issue for this industry (ultra-fresh, acceptance criteria, etc.). Facing particularly high storage constraints, a blockage, error, or simple anomaly can lead to significant merchandise losses and significantly impact a company’s activity. Another example is agricultural cooperatives, where the producer is both client, supplier, and member (thus holding a share of the cooperative), a peculiarity that a generalist publisher cannot address. Thanks to their proximity with the end customer, the integrator is again able to verticalize their offer and present a strong differentiating element.
3. THINK CLOUD
The cloud now represents nearly 50% of an enterprise’s IT budget, and this rate is expected to grow by another 10% by 2018[2]. No company can afford to omit integrating into their strategy a reflection on their cloud usage, its benefits, and the investment they should dedicate to it. For some, migrating to the cloud is synonymous with a competitive advantage, but for others, it is still associated with complex and misunderstood architecture. The integrator must then act as an “objective” advisor capable of putting different offers into perspective against their client’s objectives. To do this, they must have a comprehensive and up-to-date portfolio of offers that include or exclude a cloud module. Their challenge: to evolve their solutions by closely following the publishers without losing their historical expertise or succumbing to the siren call of the cloud at all costs. Indeed, if publishers did not exist, they would need to be invented as they are now the cornerstone of the integrator’s trade. However, it is crucial for integrators to be able to detach from them to create their growth levers, adapted to their target markets. Innovation, verticalization, and cloud are the current recipe for success. In the longer term, a more radical evolution could emerge where integrators transform into publishers. This “hybridization”, which creates value, does not seem completely unreasonable. A thought-provoking reflection on the future of the profession.
Source: Cloud Computing Study 2016 IDC Cloudview – September 2016 JOURNAL DU NET
