Go Digital or Go Extinct

GoDigital_or_GoExtinct

When you look at the stats on how fast digital transactions are increasing you can’t help but be amazed at their explosive rate of growth. The numbers tell the story. Did you know that in 2015, each mobile customer made about 37 transactions per day and that each transaction will create 4 – 100 system interactions? For example, the simple act of buying a gift online can spawn dozens of interactions – such as checking your loyalty rewards account, presenting a personalized offer, processing a credit card, and all the logistics for shipping the gift.  Each one of these interactions can then produce more interactions. Next year, that number will jump to 50 transactions a day per mobile customer, with each transaction creating 200 to 5,000 system interactions. Wow! You might have thought that managing data, systems, and costs were already complicated. Just consider what you’re going to have to deal with in just the next few years![1]

You can run but you can’t hide from the numbers

The amount of data and new types of data to be managed is unrelenting, the customer activity is never-ending, and the stakes are high. The key to managing these bigger, faster, always-available demands is to become a Digital Master.  Digital Masters – those businesses that can meet the challenges of the digital economy and can drive business transformation – average 26%[2]  higher profit margins than their peers. At the other end of the spectrum, by next year a leading industry analyst has predicted that 25% of businesses will lose a competitive ranking due to digital incompetence. Here’s another number to consider: 75%[3]  of the S&P will be replaced by 2027. Why? Your options are to go digital or go extinct.  So, what’s an enterprise to do? We’ll show you.

Mainframe organizations – be prepared

Here are some more numbers to get you thinking about the impact of the digital economy. Did you know that 80% of the world’s corporate data resides on System z Servers, 55% of enterprise applications touch the mainframe, and 91% of new client-facing apps will require System z servers to complete transactions?[4]  The digital pressures of growing transaction volumes, unpredictable transaction patterns, and huge data growth are making your systems work harder. Customers demand more and they want always-available, faster applications.

Oh yeah, they also have to do all of this with a newer, less-skilled staff because so many of the Baby Boomers are retiring. That’s why it is critical to have more intuitive, automated technology to meet these demands. Plus, the increase in transactions doesn’t necessarily correlate to an increase in revenue. To succeed, mainframe IT has to work more effectively, manage more data, provide 24 x 7 availability – and do all of this while controlling mainframe costs.

Three requirements for meeting the speed, scale, and complexity of digital business

So, how can you meet these objectives? Consider taking this approach, which focuses on three key areas:

Cost_Data_Systems

  1. Systems – Use an integrated, automated and cost-effective monitoring solution.
  2. Data – Improve performance and availability of data with automated solutions that have evolved to incorporate next generation technology specifically designed for digital business.
  3. Costs – Mainframe Monthly License Charge (MLC) costs for IBM software can represent about 30 percent of the total cost of the mainframe. By understanding what’s driving them, optimizing subsystem placement to reduce MLC costs, and using cost-aware intelligent capping, you can save up to 30% or more of MLC costs .

Transforming mainframe operations and enabling your company to become a leader in digital business requires a vision that incorporates a comprehensive approach with best practice processes and the right technology to address these challenges. Don’t be left behind. Let BMC show you how to transform the mainframe for digital business.

References:

[1] Statistics in the paragraph are from Forbes, The Digital Economy is the New App Economy, January 14, 2015

[2] Leading Digital: Turning Technology into Business Transformation, Harvard Business Review Press, George Westerman, Didier Bonnet, and Andrew McAfee, October 14, 2014

[3] Innosight, “Creative Destruction Whips Through Corporate America,” 2012

[4] All statistics in the paragraph are from IBM Systems Magazine, October 2014, Article by Valerie Dennis – Managing Editor – IBM Systems Magazine – Mainframe Edition

Check out this video to learn more.


Forrester study: Enterprises can meet the challenge of higher mainframe costs.

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These postings are my own and do not necessarily represent BMC's position, strategies, or opinion.

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Tom Vogel

Tom Vogel

Tom Vogel has enjoyed 25 years in the software industry, in various technical, marketing, and business development roles. At IBM Corporation, Tom managed product launches for various database products on all platforms. Previously, Tom managed the marketing and communications for a host of middleware software packages, such as OpenTV interactive TV software. At Automation Anywhere in San Jose, Tom was the Director of the ERP Business, managing Business Development and Marketing for the company's rapidly growing ERP process automation and testing automation solutions. Tom is experienced in building customer and partner relationships, and has an MBA from Santa Clara University. Today, Tom is the Lead Solutions Marketing Manager for innovative mainframe cost optimization and data management offerings at BMC Software.