4 reasons why it’s worth for corporations to invest in a low-code platform

The rapid advancement of technology presents a huge challenge for corporations. In order to dominate their respective industries, they must keep up with changing market demands which can be rather costly, complicated and time-consuming due to the inflexibility of legacy systems.

Most corporations are familiar with agile software development methodologies that are used to accelerate the release of products on the market and IT productivity as well as improve the satisfaction of clients, yet in itself, combined solely with manual coding it is unable to overcome the challenges posed by rapid changes.

Market demands are shaped so rapidly that more rigid companies with a waterfall-like infrastructure are unable to keep up with them. While the management is usually good at judging the expectations of the target audience it expects an immediate response, yet the IT team is still caught up in overcoming the increasing backlog. Overcoming this gap in productivity has become critical by now in order for us to clearly state that the advantage of corporations within the segment and their long-term success of corporations are dependent on this.

What is low-code and how does it contribute to the technological adaptation of agile corporations?

The advantage of low-code platforms is that they offer a dynamic, model-based interface for developers which can be easily used even by professionals with various levels of knowledge. Low-code systems were designed so their pre-coded models could be applied to satisfy the special demands of companies, thus reinforcing and modernizing their technological solutions, such as the management of their business processes or events or even their unique CRM systems. 

The increasingly rapid appearance of continuously emerging technological solutions, the fluctuation in the online behavior of customers and the adherence to the business objectives of companies makes it necessary for software development firms to rapidly come up with customized systems without comprising quality.

Under such burdens, it’s no wonder that technological decision-makers more frequently resort to low-code solutions. This growing tendency explains the noticeable fact that the global market share of low-coding platforms will amount to USD 46.4 billion by 2026.

Why do corporations invest in low-code platforms?

1. They help the company keep ahead of the competition

According to the statements of McKinsey & Company, between 1965 and 2012, the “topple rate” of market-leading companies – which shows the ratio of companies who lose their leading positions – has drastically increased, by 40%.Additionally, Credit Suisse also published an intriguing study according to which the average age of S&P 500 companies was 60 years in 1960, yet has dropped to 20 years by now.  

These statistics clearly show that technological disruption significantly contributes to the fall of previously prosperous companies. In light of this, corporations which can’t keep up with the results demanded by the market in terms of effectiveness and productivity will significantly lose out against dynamic companies capable of rapid adaptation.

The flexibility, simple use, speed and customization of low-code platforms even allow complex companies with an interrelated infrastructure to agilely adapt to the developing conditions they’re surrounded with.

2. It bridges the gap between drive of demand and the productivity issues of supply 

According to the calculations of Gartner, by 2021, the demand for software development will be 5x greater than what the segment is capable of satisfying. In such a ravenous situation, the corporation which supplies the market with quality services will surely be the one to win over the industry.

The good news is that low-code solutions, such as Mendix, allow IT teams to reate an entire system with pre-generated templates, modular, functional components and connecting elements. Subsequently, the existing ecosystem can be modified with minimum energy and resources so it would suit the demands of the business side of the equation and significantly boost the productivity of the technological side.

The best thing about it is that as opposed to ready-made, boxed solutions,low-code allows programmers to create unique code in order to develop existing elements, thus combining the simplicity and rapidness of modular solutions with the advantages of manual coding.

3. It supports the efficient cooperation between business and IT

Applying a low-code strategy provides the opportunity and motivation for the business and IT departments to efficiently work together. The available, pre-generated modules allow carrying out plans in a quick and simple way, whilst minimizing technical debt.

Not only does this solution mitigate frequent conflicts between business and IT, but it also allows agile corporations to focus on their plans for achieving their future goals and on making the most of available business opportunities without looming critical IT projects siphoning away their resources. The newly-formed cooperative organizational capacity results in added value that is synonymous reacting more rapidly to the changing market environment and challenges.

4. Low-code is a mature technology, which is proven by related new acquisitions and forms of cooperation

One might think that low-code platforms are still in their infancy, yet surveying industry acquisitions, we can quickly see that this solution has become a mature technology by now that is not only implemented by so-called early adopter firms.

In April 2020, Mendix – a leader of low-code technology and also BlackBelt’s official partner – has established a strategic partnership with Indium Software. As a result of this cooperation, it can develop Indium web and mobile applications 8x faster and more efficiently, which results insignificant ROI growth, all of which is achieved in a matter of weeks instead of months. 

Yet the outstanding performance of low-code platforms can also be witnessed in the business ties established between Mendix and SAP in 2019, as a result of which applications created with Mendix can also be deployed with SAP HAHA solutions. This partnership had led to a blend of the advantages of botht echnologies including outstanding performance, safety, speed and real-time analytics.

Summary

It’s safe to say that low-code platforms have been born through digital transformation, yet not only are they harbingers of change, they also provide a solution to critical business problems.

Low-code is the next, logical step in the development of the software industry, which has become practically inevitable for corporations that would like to keep up with the rapid changes of the market and don’t wish to lose their market share or even seek to increase it. Its wide-ranging application, flexibility and speed are indispensable for agile corporations seeking to become top operators in the merciless market competition.