The landscape of cloud computing is witnessing an unprecedented surge of commitment and expansion. Accenture’s recent Cloud Outcomes research reveals a compelling statistic: nearly 90% of companies have amplified the scope and volume of their cloud initiatives within the past two years.
This progression towards cloud adoption isn’t merely a trend; it’s an essential catalyst in achieving the strategic objectives of modern businesses. The transformational power of cloud computing promises to shape our future, but the path to extracting its full value is laden with challenges.
While a significant number of companies are realizing some benefits from their journey to the cloud, only 42% are truly harnessing the expected value. A vast reservoir of cloud potential remains untapped, concealed behind increasingly complex and business-critical problems.
Why does this scenario persist? The answer lies in the evolution of the cloud landscape. The simpler, more accessible opportunities have been seized, leaving behind the intricate, risk-laden, and challenging prospects that demand careful navigation. In this blog post, we will explore the dynamics of unlocking cloud value in 2023, shedding light on the obstacles and unveiling strategies to overcome them. Join us as we delve into the multifaceted world of cloud computing and unearth the keys to unlocking its latent value.
Aligning the Business for Success
The year 2023 marks an era where the pursuit of value reigns supreme. A striking 86% of companies have reported an uptick in cloud initiatives over the past two years, but only 42% acknowledge achieving the expected outcomes. To bridge this gap, we’ve identified core practices that can elevate cloud investment efficiency.
A significant hurdle, as identified by nearly a third of the companies (32%), is the “misalignment of IT and the business.” While working with chief information and technology officers, I’ve noticed the need to reassess the critical products or capabilities that form the cornerstone of their business.
For many organizations, it’s common for the business team to set priorities and for IT to respond accordingly. A more impactful approach lies in crafting a product strategy that anchors the company’s cloud objectives to tangible business activities. This strategy forms a value chain that enhances alignment between IT and business operations.
Transitioning from Migration to Innovation
The dialogue with CIOs has evolved from focusing on cloud migration to emphasizing the innovative prospects it offers. Conversations now revolve around how cloud drives new revenue streams, assists products in gaining market traction, fosters unique customer experiences, and empowers managers with data insights.
This shift towards innovation is powered by what can be termed a high-value use case. However, ambition requires direction. In the dynamic climate of 2023, having a real-time assessment tool is indispensable. SAP’s cloud value finder tool, a component of Altivate’s gap analysis with clients, equips companies with the ability to pinpoint areas ripe for development. This, in turn, allows CIOs and C-suite executives to strategize and orchestrate an effective cloud value campaign, unlocking the full potential of cloud capabilities.
Shifting the Focus to Value Creation Over ROI
The traditional approach of assessing the success of cloud investments often hinges on metrics such as predetermined ROI or technology costs. It’s a straightforward way of understanding gains, but it may not paint the complete picture. Leaders can easily become entangled in the allure of reduced expenses, losing sight of the actual business drivers that guide their cloud expenditure.
Reimagining What Value Means for Your Organization
Rather than merely analyzing the price tags and financial returns, companies need to shift their perspective and recognize the broader value of cloud services. This involves moving beyond cost-centric paradigms and embracing a more holistic view of value.
Here’s how you can reframe what value means in the context of cloud computing for your organization:
- Align IT Costs with Opportunities and Risks: By mapping IT costs directly to the business prospects they open and the potential pitfalls they avert, you create a deeper understanding of value. This alignment uncovers the hidden potential of IT expenses, revealing how they contribute to organizational growth, efficiency, and risk management.
- View Investments as Enablers of Outcomes: Rather than seeing cloud spending as merely a financial transaction for technological acquisition, consider it as a strategic investment in future successes. This means looking at cloud services from an outcome-based perspective, focusing on the tangible and intangible benefits they can provide, such as enhancing customer experiences, enabling innovation, and fostering collaboration.
- Communicate Value to Stakeholders: Focusing on outcomes allows for a more transparent and relatable communication of IT’s value to stakeholders. By linking investments to the capabilities they deliver and the risks they reduce, you provide a more nuanced picture of how cloud services contribute to the organization’s overall objectives.
- Embrace Agility and Adaptation: The world of cloud computing is fast-evolving, and sticking to rigid ROI metrics might hinder your ability to adapt and innovate. By putting value creation at the center, you encourage a more flexible approach that can respond to changing market dynamics and business needs.
- Foster a Culture of Continuous Improvement: Adopting a value-centric mindset instills a culture of continuous improvement where the focus is on maximizing benefits rather than merely controlling costs. This fosters an environment where learning, growth, and innovation are not only encouraged but expected.
Understanding that The Cloud Journey = A Continuous Commitment to Evolving Opportunities
The cloud journey can be likened to a lifelong commitment to learning. Just as the wisest individuals continue to learn and grow throughout their lives, the most progressive companies are those that consistently adapt, innovate, and evolve within the cloud.
The cloud is not a static destination; it’s a dynamic and continually changing landscape. Its evolution from a disruptive technology to a prevailing mega-trend underscores its expanding influence. With new features and capabilities being added regularly, the cloud creates a perpetual momentum, acting as a flywheel that propels a company forward on its transformation journey.
Embracing the full value of the cloud, therefore, requires more than a one-time effort. It’s a commitment to continuous reinvention, an unending pursuit of new possibilities, and a refusal to stand still. In an environment where change is the only constant, standing still equates to falling behind.
The cloud invites businesses to partake in an exciting, never-ending exploration of opportunities. It urges organizations to stay curious, responsive, and agile, recognizing that the journey doesn’t have an endpoint but is instead a constant pathway towards growth, innovation, and success.
Unlock the Untapped Value of the Cloud with Altivate
As we approach the latter part of 2023, the untapped potential of cloud value awaits those willing to reach for it. It might require a willingness to reassess, relearn, and adapt your approach, but the rewards are monumental.
Embarking on this journey can be challenging, sometimes even frustrating, but the end results are hugely gratifying. Committing to this exploration not only maximizes your cloud investment but sparks a total transformation of your enterprise.
Don’t let this year slip away without unlocking the higher-hanging fruits of the cloud. Partner with Altivate today and set the stage for success in 2023 and beyond. Together, we will innovate, grow, and lead your business towards a future rich with opportunities.
Contact us at Altivate to explore the untapped potential of the cloud and let this be the year that your organization takes a giant leap forward.
