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Top 8 digital transformation trends shaping 2021

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Top 8 digital transformation trends shaping 2021

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In a world that’s increasingly dependent on digital, IT’s role is more critical than ever. To meet rising demands, organizations are accelerating their digital transformation. This report identifies the top 8 technology trends that will face CIOs, IT leaders, and organizations in their digital transformation journey in 2021.

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In a world that’s increasingly dependent on digital, IT’s role is more critical than ever. To meet rising demands, organizations are accelerating their digital transformation. This report identifies the top 8 technology trends that will face CIOs, IT leaders, and organizations in their digital transformation journey in 2021.

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Top 8 digital transformation trends shaping 2021

  1. 1. Top 8 trends shaping digital transformation in 2021 M U L E S O F T R E S E A R C H R E P O R T
  2. 2. Executive summary The digital-ready culture Organizations are under greater pressure to digitize services quickly at scale to meet rising customer demands and create new revenue channels. Democratization of innovation Line of business users are trying to develop digital customer experiences faster. IT needs to drive cultural change by empowering the business to self-serve and deliver solutions quicker. Composable enterprise Hyperspecialization has created a groundswell of applications, leading organizations to shift to a composable enterprise to become more agile — where digital capabilities can be composed from existing applications using APIs, rather than being built from scratch every time. Automation Organizations are using automation to drive operational efficiency and improve business processes. APIs are key to driving automation and scaling productivity. API security The average enterprise has 900 applications. The proliferation of new endpoints creates new avenues for intrusion, requiring robust API security. Microservices Organizations are turning to microservices to rapidly build new customer experiences. Companies deploying microservices to production will require some form of service mesh capabilities in order to scale. The data divide To keep pace with evolving customer expectations, organizations are looking for faster ways to unlock data and gain insights. 2021 will be the year that data separates organizations from their competitors and customers — the ability to unlock, analyze, and act on data will become foundational to growth. Data analytics Organizations are investing in data analytics to transform customer experiences. The value of data analytics will be dependent on the data they are fed. 01 02 03 04 05 06 07 08 2 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  3. 3. About this report IT’s role is more critical than ever in a world that’s increasingly dependent on digital. Organizations are under increasing pressure to stay competitive and create connected experiences. According to our Connectivity benchmark report, IT projects are projected to grow by 40%; and 82% of businesses are now holding their IT teams accountable for delivering connected customer experiences. To meet these rising demands, organizations are accelerating their digital transformation — which can be defined as the wholesale move to thinking about how to digitize every part of the business, as every part of the business now needs technology to operate. In order to drive scale and efficiency, IT must rethink its operating model to deliver self-serve capabilities and enable innovation across the enterprise. In this report, we will highlight some of the top trends facing CIOs, IT leaders, and organizations in their digital transformation journey, sourcing data from both MuleSoft proprietary research and third-party findings. 3 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  4. 4. Contents Accelerated digital adoption Trend 01 | The digital-ready culture Trend 02 | Democratization of innovation Executive summary About MuleSoft, a Salesforce company About this report The data imperative Trend 07 | The data divide Trend 08 | Data analytics Architecting for agility Trend 03 | Composable enterprise Trend 04 | Automation Trend 05 | API security Trend 06 | Microservices 4 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  5. 5. T R E N D N O . 1 The digital-ready culture 5 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  6. 6. Customers want consistent engagement with brands across their preferred channels... of shoppers use more than one channel during their shopping journey. Source: Harvard Business Review of consumers expect consistent interactions across all departments of a company. Source: Deloitte of consumers who say they want the ability to move between channels when talking to a brand. Source: Genesys 73% 75% 86% T R E N D N O .1 | T H E D I G I TA L - R E A DY C U LT U R E 6 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  7. 7. … especially through digital means of customers are satisfied using live chat services — making it the support channel that leads to the highest customer satisfaction. Source: CustomerThink of consumers use mobile devices to connect with brands for customer service — the number jumps to 90% of Millennials. Source: Genesys of consumers expressed an intent to embrace digital replacements for in-person experiences, such as telemedicine, in the longer term. Source: McKinsey & Company 92% 78% 48% T R E N D N O .1 | T H E D I G I TA L - R E A DY C U LT U R E 7 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  8. 8. When you need support and contact organizations, what was your main way of communicating (before/now/future)? Organizations need to invest in new digital methods of customer service 40% 26% Visiting their stores or branches 28% 20% Phone call (I phone them) 14% 16% Website 5% 10% App 4% 7% Email 1% 3% Community-based support website 1% 5% Messenger apps 1% 2% Social media 1% 4% Webchat 1% 2% Video call 0% 1% SMS chat Source: KPMG Before COVID-19 Future, once restrictions are lifted Three times more consumers will use these methods as their main channel of communication in the new reality vs. pre-COVID-19 (17% vs. 5%). T R E N D N O .1 | T H E D I G I TA L - R E A DY C U LT U R E 8 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  9. 9. By what percentage are you finding the number of projects you are being asked to deliver in your organization is increasing? Average increase 2018 30% 2019 32% 2020 40% There is increased pressure on IT leaders to deliver on digital initiatives Source: MuleSoft T R E N D N O .1 | T H E D I G I TA L - R E A DY C U LT U R E 9 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  10. 10. 89% One of the biggest challenges to digital transformation efforts is integration of IT leaders report data silos are creating business challenges for their organizations’ digital transformation initiatives. of IT leaders report integration challenges are hindering their digital transformation efforts. 85% Source: MuleSoft T R E N D N O .1 | T H E D I G I TA L - R E A DY C U LT U R E 10 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  11. 11. Using an API-led approach to quickly compose new digital experiences “At BaptistCare, we are always looking at ways of improving and simplifying our customer service and delivery across our aged care and home services clients. With MuleSoft, we’re able to move fast and better serve our customers by leveraging API-led connectivity. We are quickly and easily integrating various applications and data — from our CRM system to our YouChoose tool where customers can customize the services they need online within minutes — providing connected customer experiences and reducing project delivery timelines from months to weeks.” “The whole integration behind visual applications to me is much more important because if I have the right data, I can develop 10, 12, 20 applications from the same data, choose the best, decommission the rest. If I want to be able to compose and create these new applications, I don’t want — and I don’t have — the budget every time to start from zero. I need to be able to have the pieces of functionality and pieces of data and compose the right applications.” Daniel Pettman, CIO, BaptistCare Yanna Winter, CIO, Generali T R E N D N O .1 | T H E D I G I TA L - R E A DY C U LT U R E 11 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  12. 12. 3 industry leaders tackling integration to meet digital demands and scale 17x more stores with new contactless delivery Casey’s was able to roll out a third-party food delivery service to 600 stores, up from just 35 at the start of its pilot program. WatchBox stood up an eCommerce platform and reused the same APIs to serve five new regions. 50% faster expansion into any new region With MuleSoft, RBC was able to tap into critical data in legacy systems and build solutions to eliminate paper-based processes and cumbersome manual data entry. 24 min average onboarding time T R E N D N O .1 | T H E D I G I TA L - R E A DY C U LT U R E 12 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  13. 13. T R E N D N O . 2 Democratization of innovation 13 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  14. 14. of LoB users believe IT and LoBs should jointly drive digital transformation. of LoB users are frustrated at the speed their organizations’ IT department can deliver digital projects. of LoB users agree that discoverable data and IT capabilities would be beneficial to digital initiatives. 68% 51% 80% Lines of business (LoBs) are participating in digital transformation T R E N D N O .2 | D E M OC R AT I Z AT I O N O F I N N OVAT I O N Source: MuleSoft 14 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  15. 15. In addition to IT, which groups or roles within your organization have integration needs? Integration needs are increasing across all business functions Outside of IT, the top three business roles with integration needs include business analysts, data scientists, and customer support. T R E N D N O .2 | D E M OC R AT I Z AT I O N O F I N N OVAT I O N Engineering None Sales HR Marketing Finance Customer support Data science Business analysts 40% 38% 38% 36% 35% 34% 32% Product 31% 30% 6% IT Source: MuleSoft 15 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  16. 16. “By 2023, the number of active citizen developers at large enterprises will be at least four times the number of professional developers.” Organizations need to enable innovation beyond the four walls of IT Source: Gartner* Professional developer Citizen developers T R E N D N O .2 | D E M OC R AT I Z AT I O N O F I N N OVAT I O N *Future of Applications: Delivering the Composable Enterprise, Dennis Gaughan, Yefim Natis, Gene Alvarez, Mark O’Neill, 11 February 2020 16 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  17. 17. Enterprises look to low- code development tools to improve productivity of large enterprises will be using at least four low-code development tools for both IT application development and citizen development initiatives, by 2024. of application development activity will be as a result of low-code application development, by 2024. 65%+ 75% Source: Gartner T R E N D N O .2 | D E M OC R AT I Z AT I O N O F I N N OVAT I O N *Magic Quadrant for Enterprise Low-Code Application Platforms, Paul Vincent, Kimihiko Iijima, Mark Driver, Jason Wong, Yefim Natis, 8 August 2019 17 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  18. 18. Citizen integrator tools will reach mainstream adoption in the next 2 to 5 years “Technology services of the future will be assembled and composed by the people that actually use them. “Citizen integrator tools, which enable expert business users with minimal IT skills to handle relatively simple application, data and process integration tasks by themselves through very intuitive, no-code development environments.” T R E N D N O .2 | D E M OC R AT I Z AT I O N O F I N N OVAT I O N Innovation trigger Peak of inflated exceptions Trough of disillusionment Slope of enlightenment Plateau of productivity Time Expectations Plateau will be reached: Less than 2 years 2 to 5 years 5 to 10 years More than 10 years Obsolete before plateau *Hype Cycle for Emerging Technologies, 2020, Brian Burke, Marty Resnick, Arnold Gao, 24 July 2020 Source: Gartner Workplace analytics Smart basics Knowledge graphs Digital experience monitorin g Voice of the employee Digital experience monitorin g Data literacy Employee experience tech (EXTech ) Employee productivity monitoring Virtual events Peer IT support XLA Ambient virtual meetings Internal talent marketplaces Content flow Microapps Emotion AI Citizen integrator tools Smart workplace Content integration services Digital adoption solutions Citizen data science Conversational user interfaces Workstream collaboration Collaborative work managemen t Employee wellness Employee recognition and reward system s Robotic process automato n Virtual assistants Chatbots Desktop as a servic e Intranet as a service Citizen developers Team collaboration devices Insight engines Meeting solutions Enterprise social network - ing applications Immersive workspaces Hype cycle for the digital workplace, 2020 18 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  19. 19. Skilling up teams across the enterprise to democratize innovation Eileen Rizzo, Senior vice president of IT, Ashley Stewart 19 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021 “At Ashley Stewart, we believe that by skilling up our employees on integration and APIs, we not only help them thrive in their career but also help our business thrive for the future. API-led connectivity is the most critical skill and concept to learn to create connected customer experiences and bring new innovations to market. As we broaden the Integration Trailblazers within our team, we will be able to accelerate our digital transformation initiatives, particularly as we expand our SaaS solutions.” T R E N D N O .2 | D E M OC R AT I Z AT I O N O F I N N OVAT I O N
  20. 20. T R E N D N O . 3 Composable enterprise 20 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  21. 21. Hyperspecialization has created a groundswell of applications There are around 8,000 apps in the marketing technology landscape alone. Source: Chief Martec T R E N D N O .3 | CO M P O S A B L E E N T E R P R I S E 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 2012 2013 2014 2015 2016 2017 2018 2019 2011 2020 150 350 947 1,876 3,874 5,381 6,829 7,040 8,000 21 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  22. 22. Enterprises face application proliferation 1,000s of SaaS applications that can be used to manage almost every aspect of a company’s internal operations. that enterprises use to manage functions like finance, customer support, and more. Each of these major platforms is supported with a variety of highly specialized apps. 10-12 large application platforms Source: CIO.com T R E N D N O .3 | CO M P O S A B L E E N T E R P R I S E 22 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  23. 23. Businesses will need an integration strategy to drive value from existing assets 52% of organizations say that IT has generated the most business value by building reusable integration assets that save time and money on future projects. T R E N D N O .3 | CO M P O S A B L E E N T E R P R I S E Source: MuleSoft 23 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  24. 24. The composable enterprise is crucial to becoming agile and delivering innovation In Gartner’s Hype Cycle for Emerging Technologies, composable enterprise is named a key technology for business resilience and operating at scale with speed. “This modular business model enables organizations to move from rigid, traditional planning to active agility. Composable enterprise thinking creates more innovation, reduced costs and better partnerships.” Innovation trigger Peak of inflated exceptions Trough of disillusionment Slope of enlightenment Plateau of productivity Time Expectations Plateau will be reached: Less than 2 years 2 to 5 years 5 to 10 years More than 10 years Obsolete before plateau *Hype Cycle for Emerging Technologies, 2020, Brian Burke, Marty Resnick, Arnold Gao, 24 July 2020 Source: Gartner Hype cycle for emerging technologies, 2020 Bring your own identity Low-cost single-board computers at the edg e DNA computing and storage Generative adversarial networks 2-way BMI (brain machine interface) Al-assisted design Ontologies and graphs Authenticated provenance Self-supervised learning Health passport Biodegradable sensors Private 5G Social data Adaptive ML Composite Al Generative Al Packaged business capabilities Citizen twin Digital twin of the person Multiexperience Responsible Al Al augmented development Composable enterprise Embedded AI Data fabric Secure access service edge (SASE ) Social distancing technologies Explainable Al Carbon-based transistors T R E N D N O .3 | CO M P O S A B L E E N T E R P R I S E 24 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  25. 25. Public sector organizations composing new capabilities Kevin Jones, CIO, Indiana Department of Child Services 25 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021 “Within eight hours, my team built a tracking software for all 92 counties to determine who’s in the building, when they check- in and check out to meet social distancing limits, as well as how much hand sanitizer or how many masks we need.” The Indiana Department of Child Services is now leveraging reusable integration assets with MuleSoft to ensure safety for its employees — managing building operations for the 92 state office buildings with APIs. T R E N D N O .3 | CO M P O S A B L E E N T E R P R I S E
  26. 26. 26 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021 Public sector organizations composing new capabilities Simon Moorhead, CIO, Rail Delivery Group “New, more modern-format and better-managed APIs have enabled us to [go] faster, in a more cost-effective way that we couldn’t have achieved before.... Because once we’ve made interfaces and connections and APIs, we know we don’t want to be remaking them — and this way, we generally won’t need to.” Rail Delivery Group turned to MuleSoft for its digital railcard project. The digital ticketing project made use of components and programming practices that can be built upon and reused. T R E N D N O .3 | CO M P O S A B L E E N T E R P R I S E
  27. 27. T R E N D N O . 4 Automation 27 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  28. 28. Automation is top of mind to enable innovation... of IT organizations will automate more tasks to allow team members to focus on innovation over the next 12-18 months. Source: Salesforce of organizations say they are at least piloting automation of processes in one or more business units or functions. Source: McKinsey & Company of IT decision makers say that automation is a key business initiative tied to digital transformation. Source: MuleSoft 81% 57% 30% 28 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021 T R E N D N O .4 | A U TO M AT I O N
  29. 29. … and boost productivity McKinsey estimates that automation could raise productivity in the global economy by up to 1.4% annually. Salesforce finds that 70% of service agents believe automating routine tasks would allow them to focus on higher value work. T R E N D N O .4 | A U TO M AT I O N Management reporting 40% 4% 27% 2% 23% 5% 23% 12% 23% 19% 22% 9% 21% 6% 21% 10% 21% 12% 13% 8% 5% 6% 0% 11% Tax accounting Credit management General accounting Billing Budget & forecasting Business analysis Financial reporting Accounts payable Payroll Accounts receivable Finance strategy & planning Automation potential Wasted time The PwC Finance Effectiveness Benchmarking report finds that up to 40% of time in the finance function can be reduced with automation and behavior change. 29 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  30. 30. Companies across industries are experimenting with automation Proportion of organizations implementing automation at scale by sector Automotive Industrial manufacturing Retail Utilities Consumer packaged goods manufacturing Public/ government Global average T R E N D N O .4 | A U TO M AT I O N Source: Capgemini 15% 14% 13% 8% 16% (as a percent of organizations experimenting with or implementing automation) 15% 25% 30 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  31. 31. However, integration challenges automation 60% of LoB users admits that failure to overcome challenges associated with connecting IT systems, applications, and data will hinder automation initiatives. T R E N D N O .4 | A U TO M AT I O N Source: MuleSoft 31 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  32. 32. APIs are key to driving automation APIs have emerged as the most elegant means of scaling controlled access to a defined scope of data or functionality, abstracting the complexities of the underlying systems. Each API can be treated as a discrete component representing a part of a business process, an entire business process, or a bundle of business processes. To conduct business activities, an API brokers the contract between two systems to provide the requested data or service. Experience layer Process layer System layer Customer identifier Customer sales, services, collections Customer pre- qualification Loans Historical data Customer credit assessments Create customer or prospect Book loan Identify customer Pre-qualify customer for loan Global decision system Accounts Customer data layer Core business applications Partners Sales representative portals Customer portal for loans Retail partners Partner eCommerce platform Web Indirect EDW Source: MuleSoft T R E N D N O .4 | A U TO M AT I O N 32 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  33. 33. Benefits of using APIs for automation by the numbers 22 min home loan application process To automate the home loan process, Tic:Toc used APIs to unlock data from an e-form application as well as 21 other systems. Customers can now receive full home loan approval in as little as 22 minutes, compared to the 22-day industry average. TIAA embarked on a digital transformation journey using Anypoint Platform, with the aim to reduce the complexity of the service implementations through API-led connectivity. The typical client on-boarding time is now roughly 2.5x faster due to automation. 2.5x faster client onboarding time L&G Insurance took an API-led approach to integration in order to automate the entire home insurance quote process. Home insurance advisers and customers get an accurate quote in 90 seconds, and sales opportunities have increased by twofold. 90 sec home insurance quotes T R E N D N O .4 | A U TO M AT I O N 33 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  34. 34. The future of automation: declarative programming Uri Sarid, CTO, MuleSoft “The mounting complexity brought on by an explosion of co-dependent systems, dynamic data, and rising expectations demands a new approach to software. More is expected for software to just work automatically, and more of us expect automation of our digital life and work. In 2021, we’ll see more and more systems be intent-based, and see a new programming model take hold: a declarative one. In this model, we declare an intent — a desired goal or end state — and the software systems connected via APIs in an application network autonomously figure out how to simply make it so.” T R E N D N O .4 | A U TO M AT I O N 34 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  35. 35. T R E N D N O . 5 API security 35 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  36. 36. Security is an important factor for customer loyalty Eighty-four percent of customers are more loyal to companies that have strong security controls. T R E N D N O .5 | A P I S E C U R I T Y Source: Salesforce 36 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  37. 37. Security is also a top enterprise technology investment 57% 55% 49% 41% 36% 30% 29% 25% 25% 24% 23% 22% 21% 19% 16% 16% Security Big data/analytics Internet of Things Multi-cloud strategy AI/machine learning Blockchain Streaming big data Microservices Virtual reality/augmented reality API monetization Business as a Platform Bots (chatbots + RPAs) Voice recognition CI/CD and monitoring BYO PaaS (PCF, OpenShift) Streaming events Top technology investments T R E N D N O .5 | A P I S E C U R I T Y Source: MuleSoft 37 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  38. 38. Web app attacks are one of the leading causes of large security breaches number of vulnerabilities in an average web app. Source: Contrast Security of data breaches this past year were the result of a web application vulnerability. Source: Verizon number of data breaches from last year due to web application vulnerabilities. Source: Contrast Security 26.7 43% 2x T R E N D N O .5 | A P I S E C U R I T Y 38 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  39. 39. APIs can be the weak link for serious security hacks of web-enabled applications will be more exposed to attack by API weaknesses than via the user interface. Source: Gartner* 90% *How to Build an Effective API Security Strategy, Dionisio Zumerle, Jeremy D’Hoinne, Mark O’Neill, 08 December 2017 According to Gartner, by 2022, API abuses will be the most-frequent attack vector for enterprise web applications data breaches. T R E N D N O .5 | A P I S E C U R I T Y 39 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  40. 40. API proliferation increases risk of attack T R E N D N O .5 | A P I S E C U R I T Y of web traffic is now API traffic. Source: Akamai public APIs are available. Source: ProgrammableWeb applications in an average enterprise. Source: MuleSoft 900 83% 23K+ 40 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  41. 41. The consequences of insecure APIs APIs can be used to expose sensitive data. API communications can be intercepted. Backend servers can be taken offline due to DoS attacks through an API. T R E N D N O .5 | A P I S E C U R I T Y Source: TechBeacon 41 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  42. 42. 5 ways to ensure data and API security T R E N D N O .5 | A P I S E C U R I T Y It’s critical to implement best practices to keep their integrations and the data that travels between systems under tight lock and key. Learn more about best practices here. Source: MuleSoft 42 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021 1 Multi-factor authentication 3 Digital signatures 2 Token-based credentials 4Public-key cryptography 5Digital certificates
  43. 43. T R E N D N O . 6 Microservices 43 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  44. 44. Microservices emerge as a way to rapidly build new customer experiences by exposing data and functionality Microservices expose data and functionality as a collection of loosely coupled services. With microservices, organizations can quickly adapt to changing customer requests and demands, as well as offer services that create a competitive edge. The value comes from bringing together various microservices to solve business needs. Organizations can only realize the benefits of a microservices architecture by eliminating the custom code and complexity that comes from managing all of these disparate services. Source: MuleSoft T R E N D N O .6 | M I C RO S E R V I C E S 44 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  45. 45. Organizations double down on microservices of organizations are using or plan to use microservices. Source: Dimensional Research of Financial services CIOs plan to increase spending on infrastructure technologies, such as microservices, APIs and cloud in the coming year. Source: Gartner* of enterprises rate microservices as their most important cloud-native technology. Source: 451 Research 91% 65% 49% T R E N D N O .6 | M I C RO S E R V I C E S *Bank and Investment CIOs Risk Misalignment With Business Priorities as They Navigate Crisis Response, Nicole Sturgill, 20 May 2020 45 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  46. 46. Migration of application stack or portfolio to microservices - by Industry Microservices adoption is increasing across industries T R E N D N O .6 | M I C RO S E R V I C E S 75% or more Manufacturing 9% 55% 36% High tech 22% 33% 45% Retail/hospitality 9% 46% 45% 67% 33% 9% 48% 33% 10% Retail and CPG 14% 43% 36% 7% Oil & gas 10% 74% 11% 5% Healthcare 6% 56% 25% 13% Electric utilities 67% 33% Communications, media, & services 25% 31% 31% 13% Technology 34% 44% 13% 9% Other 7% 50% 22% 21% 50-75% 25-50% Less than 25% Source: 451 Research FSI Transportation 46 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  47. 47. CPG and microservices by the numbers Unilever is supporting operations across its global portfolio of 400 brands with a microservices approach. 1,000 apps connected using microservices with APIs Unilever paired microservices with APIs to create an application network that connects its legacy systems, such as SAP, with its eCommerce applications, such as NetSuite and Google Analytics. Source: MuleSoft With API-led connectivity, Unilever created a network of reusable services, enabling self-service across various brands. This supported the launch of a newly acquired pure play eCommerce entity. Source: MuleSoft 6 months time to launch Even though Unilever is a 130-year-old brand with monolithic systems, a microservices architecture allows it to adapt at the pace of its more nimble competitors. Source: MuleSoft 3-4x faster speed of deployment for new initiatives T R E N D N O .6 | M I C RO S E R V I C E S 47 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  48. 48. Healthcare and microservices Legislative, market, and technology pressures make it imperative for healthcare organizations — including hospitals and health systems, payers, and life sciences companies — to become more agile with microservices. 2 weeks NSW Health Pathology sought to expand testing from laboratories to healthcare facilities, so patients can get quality-endorsed results faster. The team reused 10 existing APIs and a “large library of healthcare microservices” to rapidly build and deploy a solution in just two weeks that automatically delivers test results to patients. Source: MuleSoft, IT News reduction in repeat admission rates 4x Sutter Health adopted a microservices architecture powered by MuleSoft, developing a set of reusable APIs that care teams, developers, and partners could easily consume. Projects that used to take 18 months at Sutter Health now take less than 4 months. Source: MuleSoft faster increased project delivery speed T R E N D N O .6 | M I C RO S E R V I C E S 48 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  49. 49. Where microservices are important, so is service mesh *Innovation Insight for Service Mesh, Andrew Lerner, Anne Thomas, 03 December 2018 Kubernetes cluster Sidecar proxy Service C Sidecar proxy Service B Sidecar proxy Service A Control plane What is a service mesh? A service mesh is an architectural pattern for microservices deployments. Its primary goal is to make service-to-service communications secure, fast, and reliable. According to Gartner*, companies deploying microservices to production will require some form of service mesh capabilities in order to scale. T R E N D N O .6 | M I C RO S E R V I C E S Source: MuleSoft, Gartner 49 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  50. 50. Service mesh is on the rise among enterprises invested in microservices T R E N D N O .6 | M I C RO S E R V I C E S 0% 5% 10% 15% 20% 25% 30% 35% 16% 17% 8% 26% 20% 13% Service mesh is still a new technology, but 46% of organizations are piloting it or have plans to evaluate or implement it in the next 12 months. Use of service meshes to control traffic between microservices in kubernetes environments Broadly used in production environments Limited use in production environments Use in test but not production environments Evaluating or piloting Plan to begin evaluation or implementation in the next 12 months No plans in the next 12 months Source: The New Stack 50 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  51. 51. T R E N D N O . 7 The data divide 51 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  52. 52. Businesses aren’t living up to customer expectations of seamless and personalized experiences... 78% of customers expect consistent interactions across departments. Expectations VS. Reality 59% of customers say it generally feels like they’re communicating with separate departments, not one company. 66% 72% of customers expect all company representatives to have the same information about them. of customers say they often have to repeat or re-explain information to different representatives. T R E N D N O .7 | T H E DATA D I V I D E Source: Salesforce 52 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  53. 53. … because organizations struggle to unlock the data necessary to power connected experiences Of the almost 900 different applications used by the average enterprise, only 28% of those applications are integrated — preventing a single view of the customer. Source: MuleSoft T R E N D N O .7 | T H E DATA D I V I D E 53 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  54. 54. of organizations agree that an inability to connect systems, applications, and data hinders customer experience. of global consumers would consider changing service providers in response to receiving a disconnected experience. of organizations believe their revenue will be negatively impacted if they fail to complete digital transformation initiatives in the next 12 months. 59% 72% 90% Unlocking and unifying data is critical to connected experiences and growth T R E N D N O .7 | T H E DATA D I V I D E Source: MuleSoft Source: MuleSoft Source: MuleSoft 54 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  55. 55. 2021 will be the year that data separates organizations from their competitors... and customers Lindsey Irvine, CMO, MuleSoft “The reality is that the majority of businesses today, across all industries, aren’t able to deliver truly connected experiences for their customers, partners, and employees — and that’s because delivering connected experiences requires a lot of data, which lives in an average of 900 different systems and applications across the enterprise. Integrating and unifying data across these systems is critical to create a single view of the customer and achieve true digital transformation. “It’s also the number one reason digital transformation initiatives fail. As the amount of systems and applications continue to grow exponentially, teams realize that key to their success — and their organization’s success — is unlocking the data, wherever it exists, in a way that helps them deliver value faster.” T R E N D N O .7 | T H E DATA D I V I D E 55 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  56. 56. T R E N D N O . 8 Data analytics 56 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  57. 57. of marketing professionals say that big data/analytics functionality would be critical to enhancing customer experience in their organization. Source: Vendale of executives report that having “a well developed and designed enterprise data analytics effort enables us to deliver a superior customer experience.” Source: Forbes of organizations believe their revenue will be negatively impacted if they fail to complete digital transformation initiatives in the next 12 months. Source: Forbes 63% 52% 48% The rise of data analytics T R E N D N O .8 | DATA A N A LY T I C S 57 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  58. 58. of respondents said improving their data analysis is a very important factor in delivering a better customer experience. Source: eMarketer of survey respondents say real-time insights is a top need for customer experience personalization. Source: Vendale of product managers at growth companies, or companies that have seen positive revenue growth, are using analytics to collect and analyze customer perception and sentiment data. Source: Gartner* 65% 46% 43% Data analytics enables personalized customer experiences T R E N D N O .8 | DATA A N A LY T I C S *Growing Companies Are More Actively Collecting CX Data Than Nongrowth Companies, Jessica Ekholm, 17 February 2020 58 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  59. 59. Harnessing value from analytics will require accessible, quality data of marketing professionals state that improvements in personalization come from access to more real-time data. Source: Vendale $15 million 46% 3x 3% more likely to report significant improvements in decision-making compared to those who rely less on data. Source: PwC Average annual losses that poor data quality is believed to be responsible for. Source: Gartner* more likely to report significant improvements in decision-making compared to those who rely less on data. Source: Harvard Business Review Highly data-driven organizations are T R E N D N O .8 | DATA A N A LY T I C S *How to Create a Business Case for Data Quality Improvement, Ted Friedman, Saul Judah, 23 April 2018 59 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  60. 60. How organizations are leveraging analytics for connected experiences 31% Texas Children’s Hospital developed a predictive model that uses information about factors that affect patients to predict their risk of developing a dangerous diabetes complication. Caregivers can then identify high-risk patients to monitor more closely. Source: Salesforce reduction in repeat admission rates 2,087 Sutter Health is piloting a discharge program which leverages predictive analytics to identify high-risk patients and then prescribes alternative discharge workflows aimed at lowering the risk of readmission. Source: MuleSoft projected man hours saved per year T R E N D N O .8 | DATA A N A LY T I C S 60 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  61. 61. Fuel your digital transformation strategy → Discover why in today’s environment, it’s critical to enable innovation throughout the organization to increase business agility in this eBook. → Read our whitepaper to learn why API security is mission-critical to digital businesses as the economy doubles down on operational continuity, speed, and agility, and how to keep your APIs secure. → Read how microservices best practices can help your organization change quickly and innovate easily. → Learn how to use service mesh and API management to centrally manage, scale, secure, and discover any service in any architecture in our whitepaper. → Watch this demo webinar to learn how to make data-based insights easy with MuleSoft and Tableau. 61 TOP 8 DIGITAL TRANSFORMATION TRENDS SHAPING 2021
  62. 62. MULESOFT, A SALESFORCE COMPANY MuleSoft, the world’s #1 integration and API platform, makes it easy to connect data from any system—no matter where it resides—to create connected experiences, faster. Thousands of organizations across industries rely on MuleSoft to realize speed, agility and innovation at scale. For more information, visit mulesoft.com MuleSoft is a registered trademark of MuleSoft, LLC, a Salesforce company. All other marks are those of respective owners.

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