3 steps to ease the transition to a no-code company

Gartner predicts low/no-code will represent 65% of all app development by 2024. Clearly, it’s the future, but what is it, and how can you turn your organization into a no-code company to get ahead of the trend?

No-code is changing how organizations build and maintain applications. It democratizes application development by creating “citizen developers” who can quickly build out applications that meet their business-facing needs in real time, realigning IT and business objectives by bringing them closer together than ever.

Anyone can now create and modify their own tools without complex coding skills using no-code’s easy-to-use visual interfaces and drag-and-drop functionality.

Anyone can now create and modify their own tools without complex coding skills using no-code’s easy-to-use visual interfaces and drag-and-drop functionality. This creates organizational flexibility and agility, addresses growing IT backlogs and budgets, and helps fill the IT gap caused by a shortage of skilled developers.

Despite the many benefits, adopting a no-code platform won’t suddenly turn you into a no-code company. It’s a process. Here are three steps to help your transition:

1. Future-proof your tech strategy

For a long time, the threat of digital disruption and the subsequent need for digital transformation has been driving IT strategy. The pandemic made this threat all the more acute. Most organizations were forced to rapidly rethink their tech strategy in the new digital normal.

This strategy has been effective for many organizations, but it’s also been largely reactive. Organizations have been fighting to keep up with the acceleration of digital trends. The opportunity with no-code, which is still in its early days, is to make that tech strategy more proactive.

We find that many organizations still think about tech strategy from a predominantly IT lens without considering organizational structural changes that could be around the corner. Think about it: Having a critical mass of citizen developers in five years could dramatically change how your organization allocates resources, organizes departments and even hires talent.

Don’t future-proof your tech strategy for a slightly evolved version of your current organization, future-proof it for a fundamentally more democratized environment where everyone can build their own applications for their own needs. That’s a profound change. Here are three things to consider:

#business-process-management, #citizen-developers, #column, #developer, #digital-transformation, #ec-column, #ec-enterprise-applications, #ec-how-to, #no-code-software, #saas, #software-development, #startups

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Indonesian payments infra startup Xendit raises $64.6M in Accel-led Series B

Fueled by the COVID-19 pandemic, digital transformation is happening all over the world. And Southeast Asia is no exception.

Indonesia’s Xendit, a startup focused on building digital payments infrastructure for the region, has just raised $64.6 million in a Series B led by Silicon Valley heavyweight Accel. The funding brings the total amount raised by the Jakarta-based company to $88 million since its 2015.

Notably, Y Combinator also participated in the financing. In fact, Xendit is the first Indonesian company to go through Y Combinator’s accelerator program. It also was ranked No. 64 on Y Combinator’s top 100 companies (by valuation and top exits) list in January 2021

Xendit works with businesses of all sizes, processing more than 65 million transactions with $6.5 billion in payment value annually. Its website promises businesses that “with a single integration,” they can accept payments in Indonesia and the Philippines. The company describes itself as building out financial services and digital payments infrastructure “in which the next generation of Southeast Asian SaaS companies can be built on top of,” or put more simply, it aspires to be the Stripe of Southeast Asia.

Xendit has been growing exponentially since its launch — with its CAGR (compound annual growth rate) increasing annually by 700%, according to COO and co-founder Tessa Wijaya. In 2020, the company saw its customer count increase by 540%. Customers include Traveloka, TransferWise, Wish and Grab, among others. Xendit declined to reveal hard revenue figures.

It also declined to reveal its current valuation but we do know that as of October 2019, it was valued at at least $150 million – a pre-requisite for appearing on this Y Combinator liston which it ranked No. 53. 

The idea for Xendit was formed when CEO Moses Lo met his co-founders while studying at University of California, Berkeley. Shortly after, they went through Y Combinator, and launched Xendit in 2015. 

One of the company’s main benefactors was Twitch co-founder Justin Kan. According to Lo, “he happened to have some family in Indonesia, and it was also about the time when Asia was becoming more interesting for YC.”

Xendit was originally launched as a P2P payments platform before evolving into its current model.

Today, the startup aims to help businesses of all sizes seamlessly process online payments, run marketplaces, distribute payroll manage finances and detect fraud via machine learning. It aims for fast and easy integrations so that businesses can more easily accept payments digitally.

The market opportunity is there. One of the world’s most populous countries that is home to more than 270 million people — an estimated 175 million of which are internet users — Indonesia’s digital economy is expected to reach $300 billion by 2025.

Add to that a complex region that is home to 17,000 different islands and a number of regulatory and technological challenges.

“Trying to build the businesses of tomorrow on yesterday’s infrastructure is holding Southeast Asia’s businesses back,” Lo said.

The global shift toward more digital transactions over the past year led to increased demand for Xendit’s infrastructure and services, according to Wijaya. To meet that demand, the company doubled its employee headcount to over 350 currently.

The pandemic also led to Xendit branching out. Prior to 2020, many of the company’s customers were large travel companies. So the first few months of the year, the startup’s business was hit hard. But increased demand paved the way for Xendit to expand into new sectors, such as retail, gaming and other digital products.

Looking ahead, the startup plans to use its new capital to scale its digital payments infrastructure “quickly” with the goal of providing millions of small and medium-sized businesses across Southeast Asia with “an on-ramp to the digital economy.” It is also eyeing other markets. Xendit recently expanded into the Philippines and also is considering other countries in Southeast Asia, such as Thailand, Vietnam, Malaysia and Singapore, according to Wijaya.

Xendit is also similar in scope to San Francisco-based Finix, which aims to make every software company a payments company. Xendit acknowledges the similarities, but notes it is also “looking to tackle broader challenges related to accessibility, security and reliability that are unique to Southeast Asia,” with a deep understanding of the region’s unique geographical and cultural nuances.

To Accel partner Ryan Sweeney, Xendit has “quietly” built a modern digital payments infrastructure that’s transformed how Southeast Asian businesses transact.

“Their team’s combination of deep local expertise and global ambitions means they’re uniquely positioned to do what no other company could do in the region,” he said. “The vision of Xendit is a bold one: they are building the digital payments infrastructure for Southeast Asia, and fits squarely into Accel’s global fintech thesis.”

Other fintechs that Accel has backed include Braintree/Venmo, WorldRemit,GoFundMe and Monzo, and more recently Galileo, TradeRepublic, Lydia, Public.com and Flink.

#accel, #digital-services, #digital-transformation, #finance, #fintech, #funding, #fundings-exits, #indonesia, #jakarta, #payment-solutions, #payments, #philippines, #recent-funding, #ryan-sweeney, #southeast-asia, #startups, #venture-capital, #xendit, #y-combinator

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SAP launches ‘RISE with SAP,’ a concierge service for digital transformation

SAP today announced a new offering it calls ‘RISE with SAP,’ a solution that is meant to help the company’s customers go through their respective digital transformations and become what SAP calls ‘intelligent enterprises.’ RISE is a subscription service that combines a set of services and product offerings.

SAP’s head of product success Sven Denecken (and its COO for S/4Hana) described it as “the best concierge service you can get for your digital transformation” when I talked to him earlier this week. “We need to help our clients to embrace that change that they see currently,” he said. “Transformation is a journey. Every client wants to become that smarter, faster and that nimbler business, but they, of course, also see that they are faced with challenges today and in the future. This continuous transformation is what is happening to businesses. And we do know from working together with them, that actually they agree with those fundamentals. They want to be an intelligent enterprise. They want to adapt and change. But the key question is how to get there? And the key question they ask us is, please help us to get there.”

With RISE for SAP, businesses will get a single contact at SAP to help guide them through their journey, but also access to the SAP partner ecosystem.

The first step in this process, Denecken stressed, isn’t necessarily to bring in new technology, though that is also part of it, but to help businesses redesign and optimize their business processes and implement the best practices in their verticals — and then measure the outcome. “Business process redesign means that you analyze how your business processes perform. How can you get tailored recommendations? How can you benchmark against industry standards? And this helps you to set the tone and also to motivate your people — your IT, your business people — to adapt,” Denecken described. He also noted that in order for a digital transformation project to succeed, IT and business leaders and employees have to work together.

In part, that includes technology offerings and adopting robotic process automation (RPA), for example. As Denecken stressed, all of this builds on top of the work SAP has done with its customers over the years to define business processes and KPIs.

On the technical side, SAP is obviously offering its own services, including its Business Technology Platform, and cloud infrastructure, but it will also support customers on all of the large cloud providers. Also included in RISE is support for more than 2,200 APIs to integrate various on-premises, cloud and non-SAP systems, access to SAP’s low-code and no-code capabilities and, of course, its database and analytics offerings.

“Geopolitical tensions, environmental challenges and the ongoing pandemic are forcing businesses to deal with change faster than ever before,” said Christian Klein, SAP’s CEO, in today’s announcement. “Companies that can adapt their business processes quickly will thrive – and SAP can help them achieve this. This is what RISE with SAP is all about: It helps customers continuously unlock new ways of running businesses in the cloud to stay ahead of their industry.”

With this new offering, SAP is now providing its customers with a number of solutions that were previously available through its partner ecosystem. Denecken doesn’t see this as SAP competing with its own partners, though. Instead, he argues that this is very much a partner play and that this new solution will likely only bring more customers to its partners as well.

“Needless to say, this has been a negotiation with those partners,” he said. “Because yes, it’s sometimes topics that we now take over they [previously] did. But we are looking for scale here. The need in the market for digital transformation has just started. And this is where we see that this is definitely a big offering, together with partners. “

#articles, #cloud-infrastructure, #computing, #coo, #digital-transformation, #enterprise, #erp-software, #sap, #technology

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3 ways the pandemic is transforming tech spending

Ever since the pandemic hit the U.S. in full force last March, the B2B tech community keeps asking the same questions: Are businesses spending more on technology? What’s the money getting spent on? Is the sales cycle faster? What trends will likely carry into 2021?

Recently we decided to join forces to answer these questions. We analyzed data from the just-released Q4 2020 Outlook of the Coupa Business Spend Index (BSI), a leading indicator of economic growth, in light of hundreds of conversations we have had with business-tech buyers this year.

A former Battery Ventures portfolio company, Coupa* is a business spend-management company that has cumulatively processed more than $2 trillion in business spending. This perspective gives Coupa unique, real-time insights into tech spending trends across multiple industries.

Tech spending is continuing despite the economic recession — which helps explain why many startups are raising large rounds and even tapping public markets for capital.

Broadly speaking, tech spending is continuing despite the economic recession — which helps explain why many tech startups are raising large financing rounds and even tapping the public markets for capital. Here are our three specific takeaways on current tech spending:

Spending is shifting away from remote collaboration to SaaS and cloud computing

Tech spending ranks among the hottest boardroom topics today. Decisions that used to be confined to the CIO’s organization are now operationally and strategically critical to the CEO. Multiple reasons drive this shift, but the pandemic has forced businesses to operate and engage with customers differently, almost overnight. Boards recognize that companies must change their business models and operations if they don’t want to become obsolete. The question on everyone’s mind is no longer “what are our technology investments?” but rather, “how fast can they happen?”

Spending on WFH/remote collaboration tools has largely run its course in the first wave of adaptation forced by the pandemic. Now we’re seeing a second wave of tech spending, in which enterprises adopt technology to make operations easier and simply keep their doors open.

SaaS solutions are replacing unsustainable manual processes. Consider Rhode Island’s decision to shift from in-person citizen surveying to using SurveyMonkey. Many companies are shifting their vendor payments to digital payments, ditching paper checks entirely. Utility provider PG&E is accelerating its digital transformation roadmap from five years to two years.

The second wave of adaptation has also pushed many companies to embrace the cloud, as this chart makes clear:

Similarly, the difficulty of maintaining a traditional data center during a pandemic has pushed many companies to finally shift to cloud infrastructure under COVID. As they migrate that workload to the cloud, the pie is still expanding. Goldman Sachs and Battery Ventures data suggest $600 billion worth of disruption potential will bleed into 2021 and beyond.

In addition to SaaS and cloud adoption, companies across sectors are spending on technologies to reduce their reliance on humans. For instance, Tyson Foods is investing in and accelerating the adoption of automated technology to process poultry, pork and beef.

All companies are digital product companies now

Mention “digital product company” in the past, and we’d all think of Netflix. But now every company has to reimagine itself as offering digital products in a meaningful way.

#b2b, #battery-ventures, #cloud, #cloud-computing, #column, #coupa, #digital-transformation, #e-commerce, #ecommerce, #enterprise, #labor, #remote-work, #saas

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Customer experience and digital transformation concepts are merging during the pandemic

Customer experience and digital transformation are two terms we’ve been hearing about for years, but have often remained nebulous in many organizations — something to aspire to perhaps, but not take completely seriously. Yet the pandemic has been a forcing event for both concepts, thrusting the ideas front and center.

Suddenly startups that help with either of these concepts are seeing rising demand, even in a year with an overall difficult economic climate. If you are fortunate enough to be helping companies digitize a process or improve how customers interact with companies, you may be seeing increased interest from customers and potential acquirers (and this was true even before this year). A case in point is Twilio acquiring Segment for $3.2 billion recently to help build data-fueled applications to interact with customers.

Even though building a positive customer experience has never been completely about digital, at a time where it’s difficult to interact with customers in person, the digital side of it has taken new urgency. As COVID-19 took hold this year, businesses, large and small, suddenly realized the only way to connect to their customers was digitally. At that point, digital transformation became customer experience’s buddy when other ways of contacting one another have been severely limited.

Pandemic brings changes

Just about every startup founder I talk to these days, along with bigger, more established companies, talk about how the pandemic has pushed companies to digitally transform much faster than they would have without COVID.

Brent Leary, founder at CRM Essentials, says that the pandemic has certainly expedited the need to bring these two big ideas together and created opportunities as that happens. “The coronavirus, as terrible as it has been in so many ways to so many people, has created opportunities for companies to build direct-to-consumer (D2C) digital pipelines that can make them stronger companies despite the current hardships,” Leary told TechCrunch.

The cloud plays a big role in the digital transformation process, and for the last decade, we have seen companies make a slow but steady shift to the cloud. When you have a situation like we’ve had with the coronavirus, it speeds everything up. As it turns out, being in the cloud helps you move faster because you don’t have to worry about all of the overhead of running a business critical application as the SaaS vendors take care of all that for you.

#aaron-levie, #box, #bret-taylor, #cloud, #covid-19, #customer-experience, #digital-transformation, #enterprise, #saas, #salesforce, #tc

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The accelerating digital transformation, redux

Earlier this week, TechCrunch covered a grip of earnings reports showing that some companies helping other businesses move to modern software solutions are seeing accelerated growth. Inside the Software as a Service (SaaS) world, this is known as the digital transformation. Based on how many software companies are talking about it, the pace of change is only picking up.

But since we published that first entry, a number of SaaS companies that have posted financial results seemed to disappoint investors. Seeing some companies in the high-flying sector struggle made us sit back and think. What was going on?

Today we’re going to explore how the digital transformation’s acceleration seems real enough, but how it’s not landing equally. We’ll start by going over a short run of earnings results, talk to Yext CEO Howard Lerman about what his B2B SaaS company is seeing, and wrap with notes on what could be coming next from software shops.

A quick word on digital transformation

We all hear about digital transformation, but it’s hard to define. Generally, it’s a broad area that includes digitization of manual processes, modern software development practices like continuous delivery and containerization and a general way of moving faster via technology — especially in the cloud.

Speaking last month on Extra Crunch Live, Box CEO Aaron Levie defined the term as he sees it. “The way that we think about digital transformation is that much of the world has a whole bunch of processes and ways of working — ways of communicating and ways of collaborating where if those business processes or that way we worked were able to be done in digital forms or in the cloud, you’d actually be more productive, more secure and you’d be able to serve your customers better. You’d be able to automate more business processes.” he said.

What we’re seeing now is that the pandemic has accelerated the rate of change much faster than many had anticipated. Efforts to slow the spread of COVID-19 and its related workplace disruptions have accelerated what would have been a normal timetable. But on its own, that doesn’t mean the market is seeing equal results across every company and industry that might be part of that trend.

Earnings results

Lots of SaaS companies reported earnings this week, but two sets of returns stuck out as we reviewed the results, those from Slack and Smartsheet.

#cloud, #digital-transformation, #earnings, #extra-crunch, #fundings-exits, #market-analysis, #saas, #slack, #startups, #yext, #zoom

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Top cybersecurity VCs share how COVID-19 has changed investing

The coronavirus pandemic is, without doubt, the greatest challenge the world has faced in a generation. But the wheels of the world keep turning, albeit slower than during normal times.

But where the world has faced challenges, the cybersecurity industry remains largely unscathed. In fact, some cybersecurity businesses are doing better than ever because cybersecurity has emerged as one of the few constants we all need — even during a pandemic.

The vast majority of the global workforce is (or has been) working from home since the start of the lockdown, and the world had to quickly adjust. Tech companies pushed their technology and services to the cloud. Businesses had to shift from not just securing their office network but also preventing threats against their highly distributed employees working from their own homes. And, hackers are retooling their attacks to be coronavirus themed, making them far more likely to succeed.

All of these things — and more — need security. Or, as one investor told us: “Many of these trends were already underway, but COVID-19 is an accelerant.” That’s helped cybersecurity firms weather the storm of this pandemic.

We spoke to a dozen cybersecurity VCs to hear their thoughts on how COVID-19 has changed the investment landscape:

Here’s what they told us. (Answers have been edited for clarity.)

Ariel Tseitlin, Scale Venture Partners

Security budgets haven’t been affected nearly as much as broader IT spend. We continue to see existing portfolio companies raise follow-on financings, and we continue to meet with companies for new potential investments. The big change in my criteria for new investments is that a company must be able to continue growing in the current environment. We don’t know how long this downturn will last, so I don’t buy into the promise of “as soon as the economy recovers, growth will resume.”

Shardul Shah, Index Ventures

On Microsoft’s last earnings call, chief executive Satya Nadella said: “As COVID-19 impacts every aspect of our work and life, we have seen two years worth of digital transformation in two months.” This acceleration has actually created momentum for a number of cybersecurity businesses, which is why the best companies continue to draw significant interest from investors. I serve on the board of security firm Expel, which raised $50 million in the middle of this crisis.

#cloud-infrastructure, #collaboration-tools, #computer-security, #coronavirus, #covid-19, #crowdstrike, #cryptography, #cybercrime, #cyberwarfare, #dharmesh-thakker, #digital-transformation, #energy-impact-partners, #expel, #extra-crunch, #funding, #information-age, #investor-surveys, #microsoft, #sarah-guo, #satya-nadella, #scale-venture, #security, #streaming-video, #theresia-gouw, #venture-capital, #video-conferencing

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