©2015 Apigee. All Rights Reserved. 1

Digital competitiveness requires more than an app

©2015 Apigee. All Rights Reserved. 2

Apigee Institute report key findings

Research conducted online with 252 U.K. IT decision makers in February 2015

Four major industry sectors include:

• Travel and tourism

• Banking and financial services

• Retail

• Telecommunications

©2015 Apigee. All Rights Reserved. 3

The amount that U.K. shoppersare set to spend via mobile

devices in 2015, an increase of78% over 2014

RetailMeNot forecast, February 2015

We are in the age of digital disruption

All manner of industries are being shaken up by digital; retail by Amazon and eBay, hospitality by Airbnb, media by Netflix, and travel by the likes of Uber.

Regardless of their industry, every business needs to innovate–not only to be successful but to stay in business. Competitive advantage will be based on velocity of bringing digital experiences and services to market.

Even if you think you are a digital leader, there are always agile new companies gaining market share.

©2015 Apigee. All Rights Reserved. 4

£342BThe value that

networking objects, systems, and

applicationsin the “Industrial

Internet of Things”could add to U.K.

GDP by 2030

Accenture, Winning with the IndustrialInternet of Things, 2015

Consumers have embraced mobile commerce

According to the Interactive Media in Retail Group (IMRG) and CapGemini, 40% of U.K. online retail sales from November 2014 through January 2015 were completed through tablets and smartphones. MRG Capgemini Quarterly Benchmarking, February 2015

Cisco pegs the opportunity for private sector companies to connect people, objects, data, and processes—what it calls the “Internet of Everything”—at £34B Cisco Internet of Everything Value Index, 2013

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Percent of organisations thatare seeing a fundamental shift

in customer expectations due todigital growth

Apigee, UK Digital Business

Survey Snapshot, 2015

The new market context is drivingtransformation in the enterprise

79% of businesses are currently experiencing disruption from digital innovation in their market

86% of enterprises expect to experience digital disruption in 2015

A third (36%) of companies cite digital improvement as their top priority

79% say preparing for digital change is critical for the success of their business

79%

©2015 Apigee. All Rights Reserved. 6

Organisations are alreadyundertaking a company-widedigital transformation initiative

Apigee, UK Digital Business

Survey Snapshot, 2015

Improved customer experience primaryreason businesses are turning digital

75% of companies want to understand their customers better in 2015

A strong majority (75%) aim to create a more connected digital experience in 2015, with a similar proportion (75%) prioritising delivery of more products or services via mobile devices

The most common reasons to embark on digital transformation:• To provide best customer experience (37%)

• To produce new services/experiences for customers (37%)

• To identify new revenue streams for the business (32%)

• To remain competitive (29%)

More than8 in 10

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“”

“The need to provide customers with a personalised experience over the commodity purchase” was the main driver behind the company’s digital transformation. “It’s all experience-led and getting into people’s minds about what they want to do and how they want to feel about something, then identifying the product to make that happen. For us, being a digital business means offering more personalisation in our offers for our customers and the flexibility to access the right data to make this happen.

Matthew Newton, Enterprise Architect at GLH Hotels

For some, this means capturing, analysing, and distributing data to create a truly personalised experience

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“

”

Nowadays, not having an app would be like not having a website a few years ago–it is now a business essential. But it’s not just about having an app in the store, it’s about making sure this digital offering is aligned with all parts of the business.

It’s essential that our digital offering is closely intertwined with the physical in-store experience. Our digital services need to allow for a fluid end-to-end journey. For example, because we sell considered, expensive items, a customer is likely to first look online, then go and look at the item in store, then head back online to order it. There cannot be any disconnect between any of these stages, which is why we need to provide great flexibility in our apps.

Sienne Veit, Director, Online product at John Lewis

For others, this means blendingapps and other channels into aseamless experience

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The median reported increasein revenue from digital across

all respondents. But among thegroup that incorporates apps,

APIs, and analytics together, themedian rises to:

Impact of Digital on the bottom line

Difference between the “app-only” companies & those that also implemented APIs and data analytics is stark.

Only one in ten “app-only” companies seen an increase in revenue versus 81% of those who executed on apps, APIs & analytics

£487K

£9M

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Developing APIs* and the ability to collect and analyse

big data** are important business priorities for 2015

Apigee, UK Digital Business Survey Snapshot, 2015

Most understand the importance of thedigital agenda, but some may lack focus.

Fewer than 1 in 3 (31%) say their company incorporated “big data” analytics into their products, processes, and services in 2014.

Only 25% report implementing APIs.

All of those who deployed apps, implemented APIs, and incorporated data analytics into products and services in 2014 consider creating a more connected digital experience for customers, partners, and employees a priority.

75%* | 77%**

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“”

The significance of executive focus and clarityof vision is illuminated by businesses for whichtechnology has always been a core competency,but who nonetheless are aggressively committed to deploying a full portfolio of digital capabilities

ITV has always been a digital business. But for us, it’s now all about simplifying our online estate with how we access data, to allow us to do it more efficiently and quickly in order to deliver a better customer experience across all devices.

The key for us is simplicity–we need far less moving of data between systems and much more direct access to systems of record to get that data. Being truly digital enables us to have greater business agility and also exploit new opportunities as they arise. That’s the way I think all businesses are moving and that’s the way ITV has to move so we can remain competitive in a fast-changing landscape.

Paul Clark, Technology Controller, Online, Pay & Interactive, ITV.

©2015 Apigee. All Rights Reserved. 12

The few laggards report their company has taken no steps toward digital

transformation.

Apigee, UK Digital Business

Survey Snapshot, 2015

Keep calm—but carry on further, faster.

There is striking agreement on the relevance of digital in the U.K. industries we surveyed–U.K. business leaders embrace the fact that digital matters.

Those who took action on APIs and analytics as well as apps in 2014 are not only reaping greater top-line benefits than those who did not, but are also enjoying a stronger ability to innovate more quickly.

Rather than resting on their laurels, they are looking at leveraging their digital capabilities to develop new sources of revenue or enter new markets in 2015.

2%

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We believe the time is now for topexecutives at every enterprise thatunderstands that “digital matters” toensure that apps, APIs, and analyticsare all comparable and complementary assets in the digital toolbox.

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About ApigeeApigee delivers an intelligent API platform to

accelerate the pace of digital business. We help

companies – from disruptive start-ups to the Fortune

100 – use their enterprise data and services to create

connected digital experiences for customers, partners

and employees. This is digital business.

Behind every smartphone, mobile app and connected

experience is at least one API – and APIs need to be

managed, secured, analyzed and scaled. That’s what

we do.

Apigee helps businesses use APIs to securely share

data and services across a myriad of devices and

channels. Built from the ground-up for the new

requirements of today’s digital business, our platform

helps companies serve customers in a real-time,

anywhere-anytime fashion, use data to continually

improve the customer experience, and drive

additional revenue.

For more information, visit apigee.com

About theApigee InstituteThe Apigee Institute is a research and strategy

organization committed to helping businesses

succeed in the new digital world. The Apigee Institute

includes executives in Global 2000 corporations,

academic researchers, and domain experts who

collaboratively shape its research agenda and

participate in building a body of empirical data as a

shared resource.

For more information, visit The Apigee Institute