Strategic use of low-code: Boost innovation and process efficiency across your organization

Imagine being able to implement IT and business transformation projects up to ten times faster than before. Low-code development platforms make this possible – thanks to visual development tools, prebuilt components, and highly streamlined processes.

At the same time, they democratize application development: Employees without profound programming knowledge can actively contribute to process automation.

In this article, you will learn how to use low-code as a strategic lever – to strengthen innovation, optimize business processes, and drive sustainable performance across your organization.

Lack of performance and innovation – two sides of the same coin

Today‘s companies face a dual challenge: On the one hand, they are experiencing an innovation crisis. On the other hand, they are under growing pressure to boost their performance. In the long run, both of these factors pose a serious threat to competitiveness. According to studies, 45 percent of CEOs believe their organization will no longer be competitive in ten years if they continue on their current path ^[1].

Additional challenges include:

• lack of customer-centricity in processes and on digital platforms
• outdated IT landscapes that hinder modern technologies
• shortage of skilled professionals for digital initiatives
• security concerns when implementing new solutions

It‘s no surprise that 54 percent of companies fail to meet their goals in digital transformation ^[3].

Low-code as a potential enabler of digital transformation

Low-code platforms are revolutionizing software development: They also empower less technically experienced employees to build applications – quickly, efficiently, and with a strong focus on real-world needs.

What is low-code?

Low-code refers to the visual development of software using drag-and-drop interfaces and configuration, requiring minimal programming effort. Prebuilt components, automation, and AI-powered features enable speed and flexibility.

Low-code = new ways of working together: Business departments actively participate in the development process – think citizen development. This accelerates innovation and improves collaboration between IT and business teams.

Why low-code accelerates your transformation

According to studies, agile organizations are 2.7 times more successful at adapting to market changes ^[2]. One key reason is fast implementation through small, iterative sprints – exactly what low-code platforms are designed to support. Applications can be developed, tested, and adjusted in near real time.

Low-code also significantly improves collaboration between business units and IT: More than 84 percent of companies use low-code platforms to strengthen cross-functional teamwork ^[8].

Thanks to intuitive drag-and-drop interfaces and modular building blocks, business users can actively contribute to the development process. They bring in their domain expertise, articulate requirements precisely, and help create solutions tailored to their day-to-day work. In some cases, this even results in better applications than purely IT-led projects – because those who know the processes best often come up with the most effective ideas ^[8].

Why traditional development methods are too slow

Traditional software development approaches assume that all requirements can be fully captured and defined at the beginning of a project. However, this linear approach is increasingly reaching its limits, especially given the growing complexity of modern enterprise systems ^[3].

The weaknesses of traditional methods are especially evident in the following areas:

• Limited flexibility: In large system landscapes, learning is a continuous process. However, new insights gained during development are difficult to incorporate into a static design. Often, the architecture is too rigid to accommodate major changes ^[4].
• Long lead times: Traditional transformation projects involve extensive phases – from requirements analysis to selecting appropriate platforms and service providers, followed by comprehensive testing cycles. This results in lengthy project durations and delayed outcomes ^[5].
• High costs and project risks: Between 60 and 80 percent of total software costs are spent on ongoing operations and maintenance ^[7]. On top of that, around one-third of all large IT projects fail before they are completed ^[7].

Strategic integration of low-code with Pace-Layering

The advantages of low-code for your transformation projects are evident – but how and where should you begin? Gartner‘s Pace-Layered Application Strategy ^[6] is a valuable framework which helps to integrate low-code into your broader IT and digital strategy.

Pace-Layering divides enterprise applications into three layers, each with a different speed of adaptation and change:

• Systems of Record: stable core systems such as ERP or HR platforms that are built to last and rarely change
• Systems of Differentiation: applications that support company-specific processes and require regular updates to maintain a competitive edge
• Systems of Innovation: agile, experimental applications designed to quickly test new ideas and business models

This layered model helps organizations to strategically balance stability, flexibility, and innovation speed – and shows where low-code can be particularly effective:

1. In the Systems of Innovation, low-code shows its full potential: Visual development and minimal coding effort make it possible to create new applications in record time and test them on the market – a key lever for innovation speed and customer proximity.
2. In the Systems of Differentiation, low-code supports the efficient implementation of customized applications. Since these systems often need to adapt to evolving business requirements, low-code offers a flexible, fast, and cost-effective alternative to traditional development methods.
3. In the Systems of Record, low-code plays a more limited role, as these systems are built for long-term stability. Nevertheless, low-code can also be useful in this area – for example, to develop supplemental interfaces, workarounds, or user-friendly frontends.