The cloud as an integral part of business strategy and CEOs
The cloud strategy must come from the top management team and primarily the CEO. To be precise, it is not just a cloud strategy, but a business strategy backed by digital capabilities.
The pandemic has shown in the most emphatic way that technology is completely intertwined with business success, having even pushed most organizations, public and private, to accelerate their transition to the cloud. In this way, they not only gain computing and strategic flexibility, but also access to the world-class technological capabilities of cloud hyperscalers.
Obviously, while purely “born on the cloud” companies are starting with a relative lead, many traditional organizations are finding practical and effective ways to utilize the cloud to enhance their growth and resilience. The cloud is undoubtedly the future. From everyday applications such as Siri and Tik-Tok to advanced applications such as robotic telesurgery, the cloud is now the basis of much of modern business life and operation, giving instant access to innovation, at high speed and on a large scale.
In this context, regardless of the company or its industry, the cloud should be an integral part of the strategy of all companies and all CEOs.
Initially, the cloud-based transformation offers companies the opportunity to reinvent their way of working, unleash the know-how and creativity of their people, step up their efforts for sustainability and generate 360o value. However, the reality is that not all companies are able to fully unlock the capabilities and dynamics of the cloud. More specifically, our study “Sky High Hopes: Navigating the Barriers to Maximizing Cloud Value” showed a slight improvement in the efficiency of cloud transformation projects over the last two years, suggesting that a more careful and holistic approach is needed.
In practice, the myopic focus on cost savings can be a competitive disadvantage for organizations compared to those that take a holistic strategic approach. Specifically, the study “Ever-ready for Every Opportunity: How to Unleash Competitiveness on the Cloud Continuum” reveals that, while businesses intend to transfer on average more than 2/3 of their workload to the cloud in the next 3- 5 years, only half will use its full potential to transform their daily business activities and modernize applications to meet their business needs.
Cloud transformation offers companies the opportunity to reinvent their way of working, unleash the creativity of their people, step up their efforts for sustainability and generate 360o value
Therefore, the CEOs and management teams of organizations, in addition to the benefits of cost optimization, must understand the broader dynamics of the cloud in two main pillars:
• Development and innovation. The cloud has been described as the “mother” of business reinvention, as it is the platform on which most future business models are built. The speed and flexibility offered by the cloud allow large organizations to experiment and operate as a startup, with low business risk and environmental footprint. At the same time, interoperability and accessibility allow companies to reach, connect and collaborate more easily and efficiently in their wider ecosystem, another key component of innovation.
• Increase operational efficiency. The cloud helps every organization to make faster and better business decisions based on real-time data analysis (pricing, inventories, supplies, supply chain, etc.), a capability that is also the foundation for its utilization. machine learning and artificial intelligence. The cloud also supports greater automation in areas such as customer support and call centers, which is an element of differentiation in industries where customer service is central.
The organizations, therefore, that follow this integrated approach in relation to all those that focus on cost savings:
• They are two to three times more likely to innovate, automate and redesign their processes and activities.
• They achieve greater cost reduction (2.7x in Europe) compared to companies that focus mainly on data migration.
• Aim to achieve more business and financial goals, such as increasing customer base and faster market access than their competitors.
• They are up to three times more likely to utilize the cloud for at least two sustainability goals, such as using green energy sources, designing for lower power consumption, and using servers more efficiently to reduce energy consumption.
Based on the above, it is clear that the cloud is not just about technology. It is an essential factor of business transformation, strengthening the speed, flexibility and growth of organizations. Therefore, CEOs have a crucial role to play in maximizing strategic value from the cloud, as it is a platform for operational efficiency, innovation and growth that will determine the future success of the organization.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
