By Cindy Khantushig
On April 13th, VP of Research & Aragon Fellow, Betsy Burton, hosted a complimentary webinar titled, “Introducing Aragon’s First Research Globe for the Transformation Platform as a Service Market”.
This webinar covered the following topics:
- Why Has Business Transformation Become Such a Critical Issue?
- How Do Organizations Support Business Transformation?
- Why Will the tPaaS Market Evolve So Quickly?
- Who Are the Leading tPaaS Providers?
This blog features a summary of the information Betsy covered in the webinar.
To watch the entire webinar on-demand, click here.
What is the tPaaS Market?
Aragon has identified a new market, which we are calling tPaaS – Transformation Platform as a Service. The tPaaS market is a set of providers of cloud services that enable customers to reimagine and transform their business by providing business modeling and process modeling capabilities, critical digital business services and integration to new and emerging technologies. Many organizations are seeking more than just evolving or extending their business, but rather transforming.
Why Has Business Transformation Become Such a Critical Issue?
Betsy shares a “perfect storm of issues that have come to the forefront that are making business transformation interesting.” Here are the following issues mentioned:
- Pandemic
- The pandemic has forced organizations to rethink their old business models on how they work with customers and partners. In addition, the workforce has dramatically changed with employees shifting to remote work.
- Digital Business Increase in Information
- There is an increase in digital business with physical and virtual environments merging using technology. People are taking advantage of these technologies to create new businesses.
- Digitalization of Assets Creates Business and Technology Confusion
- Businesses are trying to digitize how they support their business operations.
- Increased Focus on Customer Experience & Engagement
- Businesses are focused on engaging with customers in new and different ways.
- AI and Digital Labor Technologies Emerge and Mature
- AI is becoming a pervasive technology that is changing business models and services.
How Do Organizations Support Business Transformation?
How can you begin to start transforming your business given the current issues and trends that can affect your business?
Betsy warns against starting with an IT-driven approach to transformation, where businesses buy technology and try to integrate and socialize it into their business. This method fails because it’s IT-driven and not business-driven. Instead, here are the steps Betsy recommends in going about business transformation:
- Revisit/Revise Business Strategy
- Set a clearly defined business strategy that drives your transformation.
- Self Assessment: What are we doing?
- Assess what the goal is by asking, “Are we trying to evolve, transform, or digitize?”
- Break down what really is “Business Transformation”:
- Business transformation is “the process of specifically designing new business strategies, models, and operations to support new digital business models and changing existing solutions, systems, processes, and information to support new business models.”
- Business Change: Socialize, Communicate, Collaborate
- Work across your organization internally to communicate, collaborate, and socialize.
- “80% of business transform is people, operational and process change.”
- Design, Iterate, Test, Pilot
- Think about your partners and customers in their place to create different approaches and test them out. Reach out through your organization.
- Develop and Operate
- The final step is bringing the technology to your business.
Why Will the tPaaS Market Evolve So Quickly?
There is a market demand for tPaaS because many organizations are looking to transform. It’s also in an interesting position in the market because tPaaS is building on technology and practices that already exist in an organization. It’s just not deliverable to the marketplace yet.
One foundation the tPaaS market is building off of is the iPaaS Market. The iPaaS market is “a set of providers for a suite of cloud services enabling customers to develop, execute, and govern integration flows between disparate applications.” Betsy states that the iPaaS market is really the tPaaS market where the tPaaS market is the business architecture plus the iPaaS market.
Who Are the Leading tPaaS Providers?
Betsy notes traditional iPaaS market leaders are not leaders in the tPaaS market. Instead, tPaaS market leaders are more business-focused. Many of these vendors don’t realize they are leaders within the market, but Aragon has identified the following:
- Workato
- Microsoft
- Oracle
- MuleSoft/Salesforce
- SnapLogic
Click here to download The Aragon Research Globe™ for Transformation Platform as a Service, 2022.
Bottom Line
Aragon has found that “By 2025, tPaaS will subsume 45% of the current (2021) iPaaS market. (70% probability).” We see tPaaS emerging as a large part of the marketplace. Going forward with this fact, Aragon Research advises the following:
- Organizations have to think about their future-state rather than current-state.
- Organizations should practice outside-in thinking along with inside-in thinking.
- The market will be changing rapidly, so watch the players in the market.
Though Besty suggests that organizations need to think about their business and business transformation first before looking at market players. For more guidance on transforming your business, consider scheduling a complimentary inquiry with Betsy.
Click here to watch this webinar on-demand.