Low-code Verticals Study 2022
August 11th, 2022
Global findings
The COVID-19 pandemic forced organizations to overlook concerns about security risks and communication challenges and use new technologies, including low-code, to keep their businesses trading.
Low-code has become a core technology across the four Mendix verticals.
By 2024, organizations expect low-code to overtake traditional coding when developing software.
From crisis to core; low-code’s evolution.
| Overall | Manufacturing | Finance, Banking & Insurance | Public Sector | Retail Sector |
COVID-19 Years 2020-2021 | In order to survive, businesses adopted low-code to create emergency solutions for critical operations. | Low-code used on noncritical support services�such as logistics. | The rise of fintech and insurtech challenged traditional banks�and insurers. | Innovative solutions to comply with government obligations during lockdowns. | Emergency need for digital-first trading to avoid losing customers. |
Present Day 2022 | Low-code is an accepted technology with early adopters replacing core and legacy systems. | Integrated with engineering, design, and QC to support supply chains and realize lean manufacturing. | Low-code automates purchasing of �financial products and customer service. | Enabler to handle increasing data and security needs. | Focus on hybrid solutions built �on old processes with continued supply chain challenges. |
Near Future 2023 onwards | Low-code will overtake traditional coding, and provide a way for traditional players to compete with disruptive�industry challengers. | Low-code is a key component of Industry 4.0 connecting systems and people in �real-time to �smart manufacturing. | Multimodal enterprise platforms that use tools like AI to simplify transactions, make data secure but accessible, rapidly reacting to changing markets/regulations. | User-centric government connecting users to their data and evolving regulatory requirements. | Unified retail commerce with accurate real-time inventory and pricing data through effortless collaboration�across businesses. |
Retail and Wholesale Trade Sector
Key Findings
Low-code will help trade leaders to provide unified retail commerce by improving collaboration across organizations (44%) and with third parties (41%), synchronizing customer data (43%), and improving real-time inventory �accuracy (36%) through technologies like smart shelves and computer vision.
Retail leaders are ready for staff to take the initiative. 88% say their staff have autonomy to build their own software solutions.
28% identify inventory management as a hurdle to hybrid retail models, �which is key for unified retail commerce experiences.
Manufacturing, Production, or Industry
Key Findings
Low-code has already been adopted by manufacturing for support services such as logistics, and are now integrating into engineering, design, and quality control to realize lean manufacturing.
As low-code becomes a proven technology, the future is low-code enabled smart manufacturing.
Banking, Finance, and Insurance
Banking – Key Findings
Consumers expect simpler ways to buy financial products. Leaders say low-code is helping by improving quotation and purchasing processes.
Insurance – Key Findings
Finance leaders see tech challenging tradition and say low-code can simplify financial systems.
Newgen Software Inc., a global provider of low code digital automation platform, announced that the Iowa-based MidWestOne Bank has processed nearly 1,000 small business loan applications in just two days, utilizing the API-based E-Tran integration capability of its lending software for the SBA Paycheck Protection Program (PPP).
There are reports in the media about Low-Code being used to help financial institutions. Does Mendix have a similar example?
Government or Public Sector
Key Findings
Global Narrative
1 in 9 would have closed if they hadn’t made changes during COVID pandemic.
WHO declares COVID-19 a global pandemic
Skype �launch
Slack�launch
G-Drive
launch
San Francisco: �30% of jobs �are remote
Zoom
launch
Multiple choice; Total sample n = 553�
We would have lost customers
50
Our reputation would have suffered
45
We would have raised prices
39
We would have lost revenue
39
Our organization would have closed
12
We would have let staff go
32
Lack of change would �have had a negative effect
Positive Effect
Expected result if changes had not been made during the pandemic, % of Senior Business Leaders
7
5
88
No�Effect
BL:Q11. If your organization hadn't made these changes, what situation would you have been in?; base n=556; BR: Q13. How much do you agree or disagree with the following statements; base n=556
89% of businesses made low-code changes during the pandemic. �Low-code was used, on average, for 4 out of 10 technology changes.
Average Changes Made
Low-code Changes
4
10
“[Low-code] is one of the most critical and valuable functionalities that facilitates the production process and offers support for both citizen developers and technical developers throughout the development of app.”
IT Decision Maker, Public Sector, Germany
89%
made at least one low-code �change during the COVID-19 pandemic
(2020-2021)
LEFT: Q8 & Q9. Q8. Did your organization make any of the following changes ?; base n=556; �QUOTE: Q17. What is your advice to other decision makers in your industry when implementing changes?; base n=556
Customer-Facing Technology
Operational Improvements
Enterprise-Grade Software�and Innovation
% that made the change
% that used low-code
Low-code most accelerated customer portals, productivity apps and enterprise-grade software coming out of the pandemic. �Most of the tech changes during COVID were customer-facing.
Q8 & Q9. Q8. Did your organization make any of the following changes?; base n=556
69% consider low-code a core part of their business. �10% say low-code is the foundation of their business.
Currently using low-code
94
6
Unsure or do not use low-code
Low-code is the foundation of our business
10
Low-code is mission critical
28
Low-code is a core part of our business
31
Low-code supports core operations
16
Low-code has little to no impact
3
Low-code supplements core operations
6
The importance of low-code to organizations, % of Senior Business Leaders
Q14A. Is low-code being used anywhere in your organization for software development?
Q15. (Including low-code nonusers) Which of these statements most closely matches how your organization uses low-code?; base n=556;
We told organizations the following:
“There are many low-code and no code platforms available today. Below is a list of some of the most popular. Please look through them and then answer the question below:
AgielPoint, Ali Yida, Amazon Honeycode, etc.”
Then asked:
Is low-code being used anywhere in your organization for software development?
Low-code is expected to be used more than traditional coding by 2024.�1 in 3 companies plan to speed up software development in the next 2 years.
Global expected pace of development in next 2 years, %
+8%
-6%
-2%
+/- �YOY change
Low/no code
Traditional �Coding
Global expected use of coding practices, %
Expected usage, %
Q20. How much would you estimate your organization will use low-code or no code approaches compared to traditional software development?; base n=556;
2021 – Q10. Now thinking about the next two years (2022-23), does your company plan to accelerate, maintain or reduce the pace of its software development? (US,UK, Germany, Netherlands NOT France); base n=1482
2022 - Q22. Now thinking about the next two years (2023-24), does your organization plan to accelerate, maintain, or reduce the pace of its software development?; base n=556;
0%
Increased significant acceleration is also driven by companies in the US (42%)
Increased low/no code use is driven by companies in the US
Main individuals driving low-code investment, %
Q21. Who was/would be the key driver of decisions to invest in low-code?; Total sample n = 556;�Markets: US n=277; UK n=80; Germany n=76; France n=72; Netherlands n=51
�
Low-code investment is a strategic decision; the C-suite drives the decision to invest in low-code, rather than IT leaders.
58%*
Top individual in each market
49%
*significantly higher
47%
Chief Information Officer
41%
47%
49%
Chief Information Officer
Chief Information Officer
Chief Executive Officer
Chief Executive Officer
Chief Digitalization Officer
Low-code was adopted in 2021 for collaboration, cost, and speed. �Now, its agility, ease-of-tech adoption, and security are key benefits.
2021
2022
Respond more quickly and �flexibly to business needs
Increased collaboration between �IT and business groups
Accelerated use of technologies like AI, IoT
Better able to manage app-related security issues
Relieved IT resource constraints�by empowering business users
Top 5 benefits of low-code, %
Faster development
Able to respond quickly and flexibly to business needs
Relieved IT resource constraints�by empowering business users
37% |
36% |
36% |
35% |
35% |
Lower costs of �software development
Increased collaboration between �IT and business groups
38% |
37% |
37% |
34% |
33% |
2021 Study - Q20B: What benefits has your organization seen from implementing low-code? (US, UK, Germany, Netherlands, but not France); base n=1565;
2022 Study - Q16. What benefits, if any, has your organization seen from implementing low-code?; base n=556
COVID-19 was a social experiment which improved many businesses and helped IT departments make rapid progress with transformation.�The pandemic helped IT departments break traditional barriers.
87%
of US companies are further along their digital transformation because changes made during the COVID-19 pandemic.
IT projects/app development were approved more �quickly because of the COVID-19 pandemic | 82% |
We are further along in our organization's digital transformation �because of the changes made during the COVID-19 pandemic | 83% |
Senior management has a greater appetite for �technology risk following the COVID-19 pandemic | 81% |
IT projects/app development received more� funding because of the COVID-19 pandemic | 83% |
The urgent need for quick solutions during �COVID-19 overcame data security concerns | 79% |
Internal teams are now more open to adopting new �apps/software development following the pandemic | 87% |
Q13. How much do you agree or disagree with the following statements (Top 2 Box - Agree); Total n = 556
66%
of the Public Sector said urgent need for solutions in COVID-19 overcame data security concerns
Global Data: How much do you agree or disagree with the following statements?, % that agree
Mendix Verticals
Manufacturing, Production or Industry
Finance, Banking, and Insurance
Government or Public Sector
Retail and Wholesale Trade Sector
Companies using low-code, %
Q14A. Is low-code being used anywhere in your organization for software development?; �Total sample n = 556; *Low base size; Markets: US n=277; UK n=80; Germany n=76; France n=72; Netherlands n=51
Verticals: Manufacturing n=200; Financial Services n=145; Government/Public Sector n=100; Retail and Wholesale Trade n=111.
�
*
*
Retail Trade
Manufacturing
Government�/Public Sector
Finance �and Banking
NO DATA
Low-code usage has grown to an almost universal level �across markets and industries
2021
2022
Externally focused changes made during the pandemic years (2020-2021), %
Q8 & Q9. Q8. Did your organization make any of the following changes?; base n=556
Manufacturing (n=200), Financial Services (n=145), Government/Public Sector (n=100) or Retail and Wholesale Trade (n=111).
Internal focused changes made during the pandemic years (2020-2021), %
Q8 & Q9. Q8. Did your organization make any of the following changes?; base n=556
Manufacturing (n=200), Financial Services (n=145), Government/Public Sector (n=100) or Retail and Wholesale Trade (n=111).
Top 10: What did your organization use low-code to change?
Q8 & Q9. Q8. Did your organization make any of the following changes?; base n=556
Manufacturing (n=200), Financial Services (n=145), Government/Public Sector (n=100) or Retail and Wholesale Trade (n=111).
Finance, Banking, and Insurance
Base n=145
Nearly as many business leaders say that customers benefitted most from changes to working models as those that say employees.
Q38. Which of the following has benefited most from online business models and virtual working, if any?; Finance, Banking, and Insurance; base n = 145
Q40. How has the pandemic changed the relationship/dominance of traditional banks versus growing fintech alternatives?; Finance, Banking, and Insurance; base n = 145
COVID-19 has…
…accelerated the prominence of fintech
…strengthened traditional banks
None of the above
2%
24%
14%
60%
both
6 in 10 finance business leaders say the pandemic accelerated the prominence of fintech challenging traditional banks.
“Mutual progress �and co-development �of technological innovations.”
CTO, Finance, US
Why do you say both?
“[Both have] raised the standard of digital experience and provide banking services to the unbanked.”
VP of IT, Finance, US
Customers expect better service and a simple but customized buying process.
Q36. In which of the following areas do you see customer expectations outpacing current industry standards or performance?; Finance, Banking, and Insurance; base n = 145
63% feel low-code has high potential to simplify complex financial systems.
Q39. How much potential is there for low-code to simplify parts of complex financial systems, platforms, and processes?; Finance, Banking, and Insurance; base n = 145
How much potential is there for low-code to simplify complex financial systems, platforms, and processes?
High Potential
Some Potential
Leaders see better data management improving internal processes and customer interactions over improving collaboration with third parties.
Q37. In which areas are there commercial opportunities for better data management?; Finance, Banking, and Insurance; base n = 145
B2B
applications
The app priorities for leaders are improving the core offer and customization. �Functional issues (cost, data integration, and biometrics) come second.
Q34. How important are the following when creating app solutions to interact with customers and intermediaries, e.g., agents and brokers; Finance, Banking, and Insurance; base n = 145
The majority of financial services realize the main benefits of low-code improving customer acquisition. Customization and speed are secondary goals.
Q35. What benefits have you seen in your organization due to the adoption of low-code?; Finance, Banking, and Insurance; base n = 145
Manufacturing, Production, �or Industry
Base n=200
For leaders in manufacturing, after IT, production engineering, product design, and quality control have the biggest needs for low-code.
Q29. In which functions does your organization have the biggest need for low-code adoption?; base n = 200
Monitoring production and mobilising legacy systems are challenges leaders see low-code solving; it also has a role in IoT and engaging customers.
Q24. Which of the following are the most pressing challenges in manufacturing companies that low-code can help to address?; Total sample n = 200
Which of the following are the most pressing challenges in manufacturing companies that low-code can help to address?
Q23. How important is smart manufacturing (smart supply chain management using IoT to the future improvement of the manufacturing process? ;base n = 200
63% say smart manufacturing using IOT is extremely important to the industry’s future.
Systems to manage projects and customer data require the most IT investment.
Q31. Based on what you know, which three IT systems currently consume most of your IT budget?; base n = 200
Which IT systems currently consume most of your IT budget?
Low-code gives manufacturers a real-time view of data and processes. �Leaders also feel it improves the quality of their products and collaboration.
Q25. What benefits have you seen in your organization/the manufacturing industry due to the adoption of low-code?; base n = 200
What benefits have you seen in your organization due to the adoption of low-code?
In engineering, low-code is mobilising data across internal teams, assisting in contract bids. It is also helping integrate and share data with external partners.
Q27. How have you used low-code in engineering?; base n = 186
How have you used low-code in engineering?
In production, low-code is replacing software, from basic Excel tracking, �to core manufacturing systems. It is also used to integrate external data.
Q28. How have you used low-code in production? If so, in what areas?; base n = 186
How have you used low-code in production?
Improve collaboration �and access to �transportation & suppliers
Q26c: Have you developed software to mitigate any issues in logistics and supply chains; base n = 200
Monitor and simulate logistics, supply chains, and alternate scenarios
Nearly two thirds of manufactures have developed solutions using �low-code/no code to mitigate transport, logistics and supply chain issues.
63%
65%
Manufacturers want to see industry-specific app templates �and services to use low-code more.�Leaders also want low-code to connect with the shop floor and their existing systems.
Q30. What would help your organization most to raise the level of low-code development/adopt low-code?; base n = 200
What would help your organization most to raise the level of low-code development?
36%
are open to peer-to-peer app sharing with other manufacturers
The definition of composable enterprise isn’t widely known.
Q32. What do you understand the term "composable enterprise" to mean?; base n = 200
32%
“An organization created to �impact the environment positively”
31%
“An organization created from interchangeable building blocks”
17%
“An organization built to service a larger business”
6%
“I don't know”
15%
“An organization where all employees can fulfill all roles”
4 in 10 are currently integrating composable solutions within the business. �A quarter are already fully using them.
Q33. To what extent is your enterprise using "composable" solutions?; base n = 200
"An organization that delivers business outcomes and adapts to the pace of business change. It does this through the assembly and combination of packaged business capabilities (PBCs). PBCs are application building blocks that have been purchased or developed."
Given this definition, to what extent is your enterprise using "composable" solutions?
Government or Public Sector
Base n=100
71% of public sector leaders say their organizations still rely on Excel.
Q45. Which of these software tools does your organization rely on?; Government or Public Sector; base n = 100
The majority (57%) are in the low-code adoption process; �less than a quarter have fully adopted low-code.
Q44. Where are you in the low-code adoption process?; Government or Public Sector; base n = 100
Higher low-code maturity
57%
Where are you in the low-code adoption process?
Public sector organizations feel low-code could help them cope with the amount of data they collect, its integration, and their overall security.
Q43. What are the most pressing challenges in the public sector that low-code could help address?; Government or Public Sector; base n = 100
Low-code has specifically helped with identity authentication as well as the general accessibility of citizen-facing applications.
Q42. What benefits have you seen in [pipe: pipeQ42] due to the adoption of low-code?; Government or Public Sector; base n = 100
European markets have less confidence that cyber regulations keep up with �cyber threats than in the US/UK markets.
Q46. Overall, do you think the regulations in your country keep up with the cyber threat landscape?; Government or Public Sector; base n = 100
The public sector in Netherlands and Germany are the least confident �that their software keeps up with regulations.
Q47. Overall, do you think software supporting public sector systems keeps up with the regulations?; Government or Public Sector; base n = 100
“Significant extra work due�to taking in war refugees.”
Head of Compliance, Public Sector, Germany
How have geopolitical events impacted your organization?
In response to the May 2022 Cybersecurity and Infrastructure Security Agency (CISA) directive to fix vulnerable software, the majority in US Government organizations are applying patches.
Q49. How do you intend to address the CISA directive to all federal agencies to fix vulnerable software?; Government or Public Sector; base n = 51
Retail and Wholesale
Base n=111
Retailers are confident they are using the latest technology and are performing extremely well when managing inventory and orders. �There is less confidence in on-time deliveries.
Q53. How well is your organization performing on the following?; base n = 111; Answer options: Not very well, Somewhat well, Very well, Extremely well or We do not use this
How well is your organization performing on the following?, % selecting ‘Extremely Well’
Delivering orders on-time is the area the most retailers lack full confidence
Q53. How well is your organization performing on the following?; base n = 111; Answer options: Not very well, Somewhat well, Very well, Extremely well or We do not use this
How well is your organization performing on the following?, % that did not select ‘Extremely Well’
Negative version of previous slide
Customers are most frustrated by inconsistent pricing and�issues with digital pick-up services.
Q54. What most frustrates your customers?; base n = 111
What most frustrates your customers?
About a third of retail trade organizations still use paper and/or verbal communication to track inventory.
Q57. How do shop workers/customer reps access inventory and product data?; base n = 111
How do shop workers/customer reps access inventory and product data?
Half of the leaders in the retail and wholesale trade sector feel their vendors are only somewhat integrated with their organization’s systems.
Q55: Which option best describes your organization's systems integration with vendors? Our systems are…; base n = 111
Regarding our vendors, our organization’s systems are…
Almost all say their staff are free to build their own software solutions.
Q56: How much autonomy do staff currently have to create their own software solutions?; base n = 111; Percentages do not sum to 100% due to rounding.
Net 88%
How much autonomy do staff currently have to create their own software solutions?
Retail organizations expect to see the most growth around hybrid retail models, pick-up options and customer management platforms.
Q51. In what retail areas do you expect the most business growth over the next 5 years?; base n = 111
In what retail areas do you expect the most business growth over the next 5 years?
A third say low-code has helped them to implement hybrid retail models and digital pick-up shopping.�Collaboration and customer management are the main benefits.�
Q50. What benefits have you seen in your organization due to the adoption of low-code?; base n = 111
What benefits have you seen in your organization due to the adoption of low-code?
Hybrid retail and digital shopping pick-up are the two areas leaders expect to grow the most over the next 5 years.
Safety, security and complexity are the biggest barriers to implementing hybrid retail models. Budgets, pressure to close stores and logistics are lesser concerns.
Q52. Which of the following are barriers to companies better facilitating a hybrid retail model with digital and in-store experiences?; base n = 111
Which of the following are barriers to companies better facilitating a hybrid retail model with digital and in-store experiences?
Low-code �Verticals Study
METHODOLOGY
Mendix commissioned research among 556 Senior Business Leaders in 5 countries: US, UK, Netherlands, France and Germany, fielded between June 8th -June 20th, 2022. �The margin of error for the total sample of is +/- 4% at the 95% level of confidence.
The research uncovers what senior business leaders have learned during and following the COVID-19 pandemic and how they have used low-code lessons to accelerate their business forward.
Senior Business Leaders:
277
72
76
51
80
Low-code Verticals Study 2022