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BUSINESSES RISK UP TO US $ 128 MILLION LOST REVENUE WITH INEFFECTIVE SOFTWARE DELIVERY
CircleCI , a leading continuous integration and continuous delivery ( CI / CD ) platform , has announced the findings of a new study , The Business of Software Report : Uncovering the Knowledge Gap . The study reveals that businesses may be sacrificing up to US $ 128 million in revenue per year due to ineffective software delivery . Surveying more than 2,000 business leaders in the US and the UK across 12 industries , the report findings point to an increased understanding among business leaders that software and business performance are intrinsically linked . The findings also identify a critical knowledge gap between leaders and developer teams that is causing businesses to miss out on potential revenue .
A software knowledge gap exists between executive leaders and their developer teams
A majority of business leaders ( 97 %) believe the success of their business within the next year relies on the ability of their software teams . Yet , there ’ s a knowledge gap between these leaders , two-thirds of whom aren ’ t developers themselves and the actual teams on the ground . Only slightly more than a third of respondents reported that over half of their leadership teams are skilled software developers and engineers , yet over half ( 52 %) don ’ t allow their software developers to choose their own tools . This is a decision that is prone to stifle developer choice and business innovation .
Leaders are relying on ineffective metrics
The study found 89 % of executives believe they have a good understanding of how to measure the performance of their engineering teams , yet the findings reveal that 40 % of companies rely on measuring the number of lines of code written , and 37 % measure story points . Both measures have some niche utility but are ineffective at measuring a software teams ’ success and impact on business .
Jim Rose , CEO , CircleCI , said : “ Over the last 18 months , businesses have realised that , regardless of their industry or the products or services they provide , they are a software business at their core . The survey
results show that today ’ s executives need to better invest in developer operations and accurately measure the productivity and business impact of engineering work to remain competitive . If business leaders want to create a continuous innovation powerhouse , they need to close this knowledge gap before it ’ s too late .”
Lack of innovation is costing companies
Revenue estimates from the business leaders surveyed indicate improved software delivery could be worth up to US $ 128 million per company per year , with three in five ( 60 %) predicting they could achieve a 50 or more percent increase with improved software delivery . However , 30 % are planning to prioritise DevOps , a practice that has been around since 2007 , and only 15 % will put CI / CD into practice for the first time .
Business leaders also acknowledge a lack of innovation ( 39 %) and developer skills ( 39 %) as factors holding their businesses back from reaching their full potential .
Rachel Stephens , Senior Industry Analyst , Redmonk , said : “ High-performing software delivery teams can be a key differentiator for business success , but many companies are still grappling with how to define and measure their teams ’ performance . Poorly chosen metrics can negatively impact developer productivity and can hold organisations back from success . CircleCI ’ s research shows the criticality of well-aligned metrics to an organisation ’ s software delivery and CI / CD practices overall .” �
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