According to IDC, by 2028 an organisation’s digital revenue will outweigh revenue derived from all other sources by a ratio of 60:40. This makes interconnectivity vital to the global economy and your business, now and in the future.

Average spend on digital transformation initiatives already exceeded non-digital transformation capital expenditure back in 2023, and the value of the former is expected to climb to over £3 trillion by 2027.

Interconnectivity is the glue that binds digital transformation, ensuring around-the-clock access to data, applications and collaboration tools from your partner network. Without it, these numbers simply wouldn’t be achievable.

Substandard interconnectivity reduces the potential scope and value of this activity, disrupting how organisations interact and their ability to do business.

Traditionally, connectivity focus has been around intraconnectivity— colleagues connecting with colleagues, wherever they are in the world. Interconnectivity relates to organisations digitally connecting with their partners.

So, why is interconnectivity important? As organisations advance their digital transformations, they become more dependent on partner-provided tools. Organisations adopt increasingly data-intensive applications for things like logistics and analytics and rely on a wide set of data sources to plug into. Interconnectivity unlocks greater potential, but only if it is done well.

An example of when interconnectivity works well is enterprise resource planning (ERP) software. ERP software connects core business functions like HR, finance and operations into a single source of truth and integrates with partners' supply chain management (SCM) systems.

This allows organisations to create a seamless flow of information across demand forecasting, procurement, and fulfilment. This integration can boost productivity and drive competitiveness, but only when the ecosystem is properly connected end-to-end.

In a highly interconnected and global economy, the scale and complexity of the interconnections required is a huge challenge. AI adoption further fuels the data scaling and diversity challenge, which is a topic I will cover in another blog.

So, in simple terms, interconnectivity helps modern businesses collaborate and grow. According to a recent research study by BT and ISG, nearly three-quarters (74%) of businesses agree interconnectivity is a critical component of business resilience.

Almost the same number (72%) argue that its smooth running is critical to innovation in their business, and slightly more (75%) agree customer experience suffers with sub-optimal interconnectivity.

To tackle these challenges, interconnectivity needs to be easy to establish, flexible, and scalable. Only by doing the basics brilliantly will organisations be able to truly embrace the digital economy.

A few factors make BT’s focus on interconnectivity a critical aspect of business success.

Location

When it comes to interconnectivity, location really does matter. Organisations need to ensure they are connecting in the right place to ensure they can benefit from the digital ecosystem. Carrier Neutral Facilities (CNF) are a great example. Built at the doorstep of the public cloud, they offer dense peering with the important players in that region.

Long gone are the days where network providers could operate in isolation; now it’s essential to be part of the cloud edge fabric to support their customers to embrace the digital economy.

Ease of use

Being in the right location is one thing, but seamless service is another. CNF locations offer the tools for organisations to do it themselves, but they don’t solve the challenge of how to mesh separate components into an effective global network.

Organisations need a provider with a software-defined core that provides intelligent routing to underpin trustworthy end-to-end connectivity services. This should be coupled with a user-friendly digital experience to ensure service performance and allow new partners to be easily on/off boarded as part of the wider ecosystem.

Flexibility

Business-to-business (B2B) interconnectivity is not a new need for more technically advanced organisations. For many, that need has previously been met with custom built VPN concentrators that host dedicated IPSEC tunnels. With data usage going up, and application re-platforming common place, they are no longer fit for purpose.

B2B connectivity needs to be flexible enough to easily change bandwidth as demand changes and to switch locations without onerous delays. There is one thing we can be certain of: requirements will change as the digital world evolves, and the speed of those changes is only going to increase. This means organisations need a partner that enables any change seamlessly.

Trust

Without trust, technology is less useable and impactful. Having trust in the technology that powers your business helps you do more and move faster.

Users must be confident in the tools they use to share data securely. They should have tools that give them control over their data’s network path to avoid unwanted regions or countries, while also ensuring secure interconnectivity that leverages built-in security features tailored to their specific needs.

Trusting that your connectivity is secure allows organisations to embrace the digital economy without fear of unintended consequences.

Cost optimisation

Cost is a critical component of any strategy, but it can also be a competitive advantage for organisations that make the right choices. No longer is it a cost to operate, now it is a driver for revenue.

Optimising your interconnectivity design can have a big impact on total cost ownership, such as replacing variable egress charges with lower fixed price private connections to avoid bill shock. Seamless interconnectivity enables efficient processes that drive competitiveness and enable to the digital economy in a flywheel effect.

In summary, interconnectivity is essential for powering the digital economy. By strategically focusing on location, ease of use, flexibility, trust, and cost optimisation, organisations can maximise the benefits of interconnectivity. This not only enhances operational efficiency but also drives competitiveness and resilience.

As the digital landscape continues to evolve, robust network-as-a-service (NaaS) solutions, built on a foundation of CNFs worldwide, will be crucial for sustaining success and unlocking new opportunities in the global marketplace. Embracing these solutions ensures that businesses can thrive in an interconnected world.