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Mode 1 refers to streamlining core business processes based on standardised software and leveraging real-time analytical insights to optimise how a company runs. Mode 2 focuses on business innovation and lowering the time-to-market roll-out of custom-built cloud applications,” says Goerke.įor example, the Massachusetts Institute of Technology (MIT) has been running its central administrative processes on R/3 for two decades. This concept has been labelled bimodal IT, or IT pace-layering by Gartner and others. “Companies need to ensure that non-differentiating, core business processes run smoothly, and at the same time, they need to quickly roll-out innovative software solutions to gain and maintain a competitive edge. Intelligent enterprises take a bi-modal approach to this complex task.

“In order to succeed in the digital economy, every company must become a software-driven company,” says Bjoern Goerke, president of SAP Cloud Platform, SAP SE. SAP Cloud Platform helps companies do that successfully. The trick is to keep running without stopping to adjust for these changes. Experts say there are three key areas where enterprises need to transform: customer experience, operational processes and business models. So what’s the best way to go about it?ĭigital transformation is about using technology to radically improve performance and increase the reach of an enterprise, and it’s a hot topic for companies of all sizes all around the world. Have you ever tried changing into a new pair of high tech shoes while running and still winning the race? That’s what companies have to do to transform successfully in the digital age.

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