Digitization and climate change are both hot topics. The two subjects are also getting used together in the same sentence more frequently. For example, did you know digitization is good for reducing carbon emissions? According to the World Economic Forum, Digital technologies have the potential to reduce global emissions by 15%.
Since the pandemic lockdown, people have been working from home. The workforce has been slow in returning to the corporate office setting. An IFS survey conducted last year reports that almost three-quarters of respondents plan to increase spending on digital transformation. The climate control benefits include a reduction of CO2 emissions due to less commuting and travel to in-person meetings. Technologies like Microsoft Teams have made multi-site team meetings easy and readily available.
Cloud migration is the price of admission to competing in the digital world.
Moving your IT environment to the cloud reduces the need for additional hardware, but more importantly, to your bottom line and the environment, cloud migration modernizes your operations. While being on the cloud, and using robust cloud-enabled services like IronOrbit’s INFINITY Workspaces, won’t make your business carbon neutral, it is a significant first step on that journey.
How You Can Reduce the Environmental Impact on Doing Business
Hardware casings, cords, adaptors, and other electrical products are called E-waste. E-waste is a growing problem. Significant environmental damage happens because nature cannot absorb these products. E-Waste is a significant contributor to the haphazard disposal of old electronics: they’re inert. All E-Waste products contain hazardous materials of one kind or another. The toxic materials are predominantly lead and mercury.
By switching to IronOrbit’s cloud, you can reduce the amount of hardware because you no longer need to invest in so many on-site computer stations. There’s no need to pay for its maintenance or replace machinery when it becomes obsolete. Instead, you only pay for the exact services you need. Over time, this saves you money. Cloud computing can help your company become sustainable while making it more profitable and productive.
Reducing Needless Travel Reduces Carbon Emissions
INFINITY Workspaces is our brand of DaaS, robust technology that enables employees to work remotely with ease. There are different INFINITY packages to fit specific use cases. Even designers and engineers can access the most demanding modern applications on their mobile devices. INFINITY Workspaces empowers Geographically dispersed teams to do their best work. The technology inspires productivity while eliminating the need for lengthy commutes. It also eliminates the carbon emissions associated with daily commutes.
Adopting a work-from-home environment or even a hybrid workplace is an excellent way to reduce your business’s carbon footprint. You could also save some money in the process.
Shared Data Centers Reduce Greenhouse Gases (GHGs)
On-premises servers and data centers use substantial amounts of energy both for running and cooling. The manufacturing, packaging, and shipping of the hardware and peripheral products also add to GHG emissions. Companies can reduce emissions considerably by moving to a cloud computing environment. Once a company moves to the cloud, they use shared data centers. Like the ones operated by IronOrbit, shared data centers run far more efficiently than individual facilities or on-premises servers. There is no longer a need for personal equipment.
A recent forecast by the International Data Corporation (IDC) reports that cloud computing will prevent the emission of more than one billion metric tons of CO2 between 2021 and 2024. Moving away from legacy software and hardware and towards cloud adoption is a logical next step for companies. Insofar as business continuity and investment in the future, cloud migration is a necessity.
Cloud computing and all the digital benefits of having your IT infrastructure on the cloud are valuable for IT departments. IT departments can work more closely with business leaders to develop new sustainability goals. It is favorable for companies, and of course, it contributes to a healthier environment.
Contact us for a no-obligation proof of concept. We’re here to help.
At a recent design and manufacturing conference, a question came up. “Is the industry ready to make use of new technologies?” The answer came back, a resounding no. Most companies have skipped the step of digitizing their existing processes, so they’re not ready for new digital inputs. Perhaps an excellent intermediary step would be to reimagine business as usual by partnering with a managed service provider (MSP).
Shifting to a managed services environment is a critical step for many businesses. If you’re feeling overwhelmed with wondering about your next best business decision, then you’re not alone.
Many companies haven’t figured out how to change themselves enough to grapple with legacy challenges, let alone how to solve new, more complex puzzles like digitizing operations. By having an MSP like IronOrbit, companies can take their time becoming more comfortable with the idea of digitizing. When companies are ready to digitize, they won’t need to do major surgery on their IT infrastructure or data architecture before they begin. Instead, they’ll have a reliable partner who can focus on providing the right technology at the right time.
The Growing Skills Gap
In January 2021, a McKinsey study found that 87% of companies worldwideare aware of a skills gap. Gaps in IT departments will become increasingly conspicuous as emerging technologies continue to get a foothold. In the digital age, companies need to move fast. Ongoing IT education is prohibitive for many organizations. Even if the financial resources are available, the process is too slow. There is a genuine need for businesses to move faster than before. Whatever they can do to enable their operations to be more transformative and innovative with their use of technology, the better off they’ll be for whatever happens next.
As soon as an IT, enterprise resource planning (ERP), or e-commerce business solution is down; an organization instantly loses profits. Efficiency and expertise are necessary for getting these solutions back up and running. Bracing for the storm of increasing demand and decreasing labor power, business leaders may feel stuck when making their next move. If this is the case, managed services could be a solution. Here are the factors to consider.
Bridge the Skills Gap
A recent Prudential survey reports that businesses that focus on continuously expanding employee skills have a tremendous advantage over those companies that don’t. When critical business technology goes down, companies can’t wait for internal IT teams to figure it out. Having a managed services partner like IronOrbit can efficiently solve the issue; moreover, a predictive analysis might prevent such disruptions in the first place.
Your Perfect IT Partner: Five Things
When considering a managed services partner to fit your business, there are five key characteristics to consider:
Cost Savings – With IronOrbit’s managed services expertise and ability to efficiently solve IT challenges, you’ll notice significant cost savings by filling the skills gap and preventing extended downtime, lag issues, and recurring IT problems.
An Increase in Productivity & Efficiency– Supporting your business and employees is IronOrbit’s reason for being. IronOrbit’s Managed Services free your internal IT, so they can focus on other priorities and increase your business’s efficiency.
Quick Response Times – IronOrbit’s support staff is available when you need them so you can increase efficiency. IOCentral’s self-help automation tools make it fast and easy to open support tickets and check status around the clock, three hundred and twenty-five days a year. IronOrbit guarantees a consistent and reliable communication line to address urgent issues efficiently. Access to IronOrbit Resources and Specialized Expertise. IronOrbit service providers are certified professionals who have the expertise your business needs.
An Extension of Your IT Department – With IronOrbit’s Managed Services, you’re not just getting a solid and secure IT infrastructure; you’re getting a partner who can liaise between your IT department and your ERP and e-commerce providers for the most effective solutions. Your team will have more time to spend on furthering business-critical activities than solving IT problems.
Finding What Works for Your Business – IronOrbit has the expertise and innovative technology to best support you and your team regardless of the business needs. IronOrbit’s Smart Managed Services enables you and your teams to step away from any IT needs to focus on critical strategies for sustainable business growth. You’ll have more bandwidth to experiment and figure things out. Plus, you’ll have a technology partner ready to provide options for any challenge that may appear on the horizon. Companies face innumerable disruptive threats and risks. IronOrbit’s Smart Managed Services ensure smooth sailing for your IT environment now and in the future. We’ll be there whenever you’re ready to do more of anything, including digitize operations.
Please call us now at 888-753-5060 for a free no-obligation consultation.
Seamless collaboration is the future for many industries. But it is indispensable for the future of the Architecture, Engineering, and Construction industry (AEC) sector. A recent McKinsey report found that 80% percent of average cost overruns come from change orders. Imagine how well the industry would perform if that statistic weren’t there. Years before the pandemic erupted, the AEC industry rapidly moved toward remote and hybrid work models. Competitive firms wanted to make it easy for the right talent to join their project teams.
According to the World Economic Forum, 98% of people surveyed want to work from home for the remainder of their careers. A Gartner survey found 82% of businesses plan to retain a remote work environment. Enabling remote work is only one part, albeit a foundational one, of an increasingly complex question. As more work goes on outside a corporate office environment, businesses will use cloud technologies to make applications and files available from anywhere on any device. The question is how to stay current and competitive with the rapid changes in the industry.
The AEC industry continues to undergo tectonic shifts away from labor-intensive methods to automation through digital technologies. The growth of digitalization paves the way for more rapid adoption of technologies such as Building Information Modeling.
The Promise of Building Information Modeling (BIM)
BIM is a computer-based tool used by architects, engineers, and builders to design residential housing to high office buildings. The time-saving and improved efficiency modeling potential is enormous where entire life cycles of buildings are manageable. Building owners can benefit from real-time monitoring of energy expenditure peaks and valleys, physical maintenance requirements, etc. Why not connect the smart features of the building into the BIM equation.
The power of BIM is growing as more and more cloud-connected technologies take collaboration and connectivity to whole new levels. Think about the integration of BIM so that cities can monitor civic resources like water and power consumption. Waste and recycling initiatives could become more efficient. But for all of that transformational power and potential to save money and build better and more efficiently, BIM is what Mitchell Hughes, author of the Future of BIM is Seamless Collaboration, calls a downstream tool. Hughes writes that architects, engineers, and building designers don’t want many upstream changes coming in from contractors.
Project team leads must make information and communication accessible across a well-managed, secure environment for architects and engineers to use what BIM offers fully. You want an easy-to-understand way for all project stakeholders, from the design captain to the contractor and building manager, to tap into the information they need. One way to do this is through the adoption of Desktop-as-a-Service (Daas).
DaaS is an evolution of the old Virtual Desktop Infrastructure (VDI)
The difference, and what a significant difference, is that DaaS is cloud-based. The fact that a company’s IT infrastructure is in a cloud environment accomplishes many things, not the least of which is relieving the company of the burdens of daily administration, upgrades, patching, and troubleshooting that goes along with an on-premises VDI deployment. Let’s face it, an IT refresh and managing many desktops and mobile devices can eat up much time; and, therefore, money.
The custom fit of IronOrbit’s INFINITY Workspaces allows internal IT professionals the mental bandwidth and time they need to strategize with business leadership to develop initiatives that can have a direct and meaningful long-term impact on the company’s success. Not only improving efficiencies but also setting the stage for new digital innovation. Better Communication and Collaboration mean fewer change orders. Information and Communication Technologies (ICT) would enable handling the necessary changes quickly and easily. The entire industry would become faster and more efficient.
The technology professionals at IronOrbit are passionate about helping companies unlock the full potential of being on the cloud. We’re also passionate about seeing the promise of BIM fulfilled. IronOrbit’s INFINTY Workspaces is not just DaaS, but a gateway into a multilayered cloud ecosystem offering unprecedented value and benefit.
Learn more about IronOrbit’s INFINITY Workspaces; download your copy of the INFINITY brochure.
Cyberthreats to your business are at an all-time high. They are, as President Biden states, “the defining threats of our time.” Is your company prepared to withstand such attacks? According to a recent Gartner article, business leaders need to do more to strengthen their cybersecurity.
“There are only two types of companies: Those that have been hacked and those that will be hacked.”
Robert S. Mueller, former Director of the FBI – 2012
“There are only two types of companies: Those that have been hacked and those who don’t know they have been hacked.”
accredited to John Chambers, CEO Cisco – 2019
Days before Russian tanks began rolling into Ukraine; a significant connectivity outage hit Viasat Inc. (VSAT). The Carlsbad, Calif.-based company is a leading provider of high-speed satellite broadband and secure networking for military and commercial customers worldwide. Viasat modems control thousands of wind European wind turbines. Suddenly, they went offline. The outage hobbled the Ukrainian military as generals began preparing for the Russian invasion. Reuters later reported the blackout to be sabotage.
Although most well-organized ransomware gangs are in Eastern European countries, state-sponsored hacking groups are from China and North Korea. They use sophisticated tools to embed malware deep inside the most extensive networks. In many cases, malicious code can go undetected for months, infecting millions of computers.
On January 15, 2022, members of one of the main ransomware gangs, Our Evil Group, were arrested in Russia. The Putin regime has recruited them to become a state-controlled group of hackers. About a month later, we began to see a resurgence of attacks. And that’s only the attacks we read about in the headlines. For every ransomware attack you hear about, there are three others that go unreported.
The Software Supply Chain Attack
SolarWinds is a company that supplies its software to over 14,000 companies. Russian military intelligence inserted a form of malware that served as a sophisticated backdoor to these companies. It’s a certainty that some of these backdoors have been successfully embedded without US companies knowing about it. Corporations probably can’t determine conclusively whether-or-not a backdoor has been installed.
In the case of the SolarWindsCorporation, one of their customers, a cybersecurity company called Fire Eye, discovered the malware by chance. They had received the software and, months later, somebody noticed a questionable anomaly. SolarWinds is not a unique situation. There are sure to be other corporations that have been infiltrated.
Escalation of Ransomware Attacks
Recently, the President sent warnings to the citizens and businesses across the country and urged everyone to take steps immediately. Key targets include private companies and any organizations that could apply pressure to the national economy and the government, including critical infrastructures.
When it comes to ransomware attacks, no sectors are off-limits. Hackers are going to go after everything that they can. Last year, we saw how no company, large or small, was immune to attack. For example, there were ransomware attacks on the following:
Small Family-Run Fishing Business
Ferry company on Martha’s Vineyard
Casino Hacked through a Fish-Tank Thermometer
Large meatpacking company
The Colonial Pipeline
The Colonial pipeline was devastated in May 2021 by cyber terrorists. Attackers distributed malware through email then demanded a ransom to restore services. The 5,500-mile pipeline transports 100 million barrels of gasoline and other fuel products per day to the eastern United States. According to a report from Reuters, gasoline futures spiked 3% and have remained above trend since that time.
Two months later, Jennifer Granholm, the Energy Secretary, saidthat bad actors gained the ability to shut down the U.S. power grid. Hackers embedding themselves in the nation’s electrical grid displayed tremendous sophistication that analysts hadn’t seen before. Whoever was behind the cyber-attacks on our country’s infrastructure was succeeding at an alarming rate. Who did the government call in to investigate? CrowdStrike. Why? Because CrowdStrike has been investigating high-profile cyberattacks since 2011. Investigators at CrowdStrike have even unspooled more recent attacks where the code dates back to 2010. So, CrowdStrike has been on the frontlines of cybersecurity since their beginnings.
What Can Be Done?
There are basic preventative steps that everyone must apply regularly. For example, don’t respond to SMS text messages from unknown origins. Don’t open links from emails of anonymous sources. Make that a personal policy and individuals will effectively eliminate most threats. Companies, on the other hand, are different. They need comprehensive and robust security protocols that are more sophisticated than the attacks.
Companies must realize that antiquated technologies like antivirus and firewalls are weak defenses against modern, sophisticated cyberattacks. Businesses must modernize their cybersecurity by using the new technologies mentioned by President Biden in his message to the nation. Businesses must use security measures like EDR and XDR to protect against modern ransomware groups.
EDR stands for Endpoint Detection and Response. It’s an integrated endpoint security measure that combines real-time continuous monitoring and collection of endpoint data with rules-based automated response and analysis capabilities. In the case of CrowdStrike’s EDR, the security technology combines a high degree of automation with machine learning to enable security teams to identify and respond to threats immediately. The next-generation endpoint protection leverages CrowdStrike’s state-of-the-art file and behavioral-based proprietary machine learning and Indicator-of-attack methodology. This is particularly effective at stopping new, polymorphic or obfuscated malware, which is often missed by legacy antivirus solutions.
An essential ingredient of “next-generation” is reducing overhead, friction, and cost in protecting your environment.
You don’t need a large staff to maintain the CrowdStrike environment. Everything is cloud-based, so there’s no equipment to maintain, manage or update. The Falcon sensor is unobtrusive, and updates are seamless, requiring no re-boots. The web-based management console provides an intuitive and informative view of your company’s complete environment.
XDR is Extended Detection and Response and is the evolution of having EDR as a pre-requisite technology. CrowdStrike’s Falcon XDR uses artificial intelligence to improve threat visibility by making sense of structured and unstructured data at lightning speeds. Falcon XDR rapidly and efficiently hunts and eliminates threats across multiple security domains. What separates Falcon XDR from all others is its ability to isolate and identify relevant telemetry from systems and applications across an organization’s entire IT security ecosystem. Falcon XDR delivers proactive, automated responses to threats across the security stack.
CrowdStrike’s Falcon Complete protects an organization against someone clicking on a link they shouldn’t have. The technology sees the behavior, and as executable files begin unzipping, Falcon Complete begins monitoring for questionable activity. As soon as malicious activity, Falcon Complete isolates it.
CrowdStrike has been leading the charge against cyberthreats since 2011 when it was founded. The security firm uses cloud-based software that collects threat data across all connected devices. Artificial intelligence analyzes the information and seamlessly updates all endpoints.
The fast-growing Austin, Texas-based company provides cybersecurity to 15 of the 20 largest banks and 77 Fortune 100 companies. Private sector clients are apprehensive about the escalation of cyberthreats against Americans amid Putin’s invasion of Ukraine. Severe ransomware attacks are likely to increase as sanctions on Russia become more effective.
CrowdStrike has a long history of working with the federal government state, and national oil and energy firms to investigate cyberattacks and shore up defenses. Much of their innovations in security came from listening and working with clients to help solve the most challenging cybersecurity problems. Years of forensic analysis, fine-tuning, and adjusting to meet threats as they emerge have made CrowdStrike the pioneer of cloud-delivered endpoint protection.
CrowdStrike Falcon has revolutionized endpoint security by being the first and only solution to unify next-generation antivirus, endpoint detection and response (EDR), and a 24/7 threat hunting service. Millions of sensors across 176 countries collect and analyze more than 30 billion endpoint events per day. All of them use some form of machine learning and automation. These powerful capabilities are possible through a unique combination of prevention technologies. They include indicators of Attack (IOA), exploit blocking, real-time visibility, and around-the-clock managed hunting to discover and track the stealthiest attackers before they do damage.
The country cannot defend against cyberattacks alone, nor can your organization. Companies need the vigilance of every employee and every contractor. Business leaders must “accelerate efforts to lock their digital doors.” Using CrowdStrike is an effective way to secure all entries to your company’s infrastructure.
IronOrbit knows the importance of having resilient cybersecurity. That is why we protect our virtual desktops, INFINITY Workspaces, with CrowdStrike’s highest level of AI-enabled security technology augmented by live monitoring by a team of CrowdStrike’s team of security experts. Imagine having multiple full-time expert incident responders conducting day-to-day monitoring of alerts.
CrowdStrike® Falcon® Complete™ is a 100 percent hands-off and worry-free managed detection and response (MDR) solution uniquely provides the people, process, and technology required to handle all aspects of endpoint, cloud workload, and identity security, from onboarding and configuration to maintenance.
2022 will continue to see the digitization and virtualization of society and business. The need for sustainability, increasing data volumes, and computer network speeds will drive digital transformation as companies move from a survival strategy to one of thriving.
As promised by Moore’s Law several decades ago, technology advancements continue to accelerate, but the speed at which these accelerations are occurring far outpaced earlier projections. The World Economic Forum’s Future of Jobs report says, “Developments in previously disjointed fields such as artificial intelligence and machine learning, robotics, nanotechnology, 3D printing, and genetics and biotechnology are all building on and amplifying one another. More than a third of the desired core skill sets of most occupations will be comprised of skills that at not yet considered crucial to the job today.”
When you think about what technologies might be game-changing for your company in 2022, you aren’t thinking about nanotechnology, quantum computing, or neural interfaces. As much as the tech giants may want to forecast a utopian future based on these technologies, what your company needs right now is technologies that will help you get more done with less, work from anywhere, and support your organizational objectives.
Let’s dive into some “right now” technologies that can be disruptive in a good way to your workflow and organization as a whole in 2022.
Digitization and Virtual Environments
The trend toward leveraging big data and the digitization of workflow within organizations makes virtual work environments possible. During the pandemic, everybody scrambled to set up home offices. The organizations that already had a virtual IT infrastructure had a much smoother transition. Employees just had to grab their computers from the office and take them home. Others had to work through it and make adjustments along the way. Most of those that didn’t transition went out of business.
It’s interesting to note that many business leaders are still grappling with the employee question of when (or if) they’ll be returning to an office environment. Sharyn Leaver writing for Forrester, predicts only 10% of companies will remain fully remote. Of the 60% planning to shift to some sort of hybrid model, one-third of those firms will fail in their first attempt at anywhere work.
New technologies are emerging in every area. Cloud computing continues to be at the forefront of every discussion because it is foundational to everything else. All IT services, applications, and cybersecurity protocols are delivered through the cloud.
Last October, at Gartner’s IT Symposium in Stamford, Connecticut, analysts reported that enterprises must move away from “lift and shift” migration and toward Cloud-Native Platforms (CNPs). The power of cloud computing provides scalable and elastic IT-related capabilities “as a service” to technology creators using internet technologies, delivering fast time to value and reduced costs. For this reason, Gartner predicts CNPs will serve as the foundation for more than 85% of new digital initiatives by 2025, up from less than 40% in 2021.
Aamer Baig writes in an article for McKinsey, “Most companies we know are well into their cloud journeys and understand notionally that the cloud offers a big opportunity. But many are struggling to capture the full value cloud offers. As in the adoption of any new technology, of course, hiccups are inevitable. But the fundamental issue is that companies are looking at the cloud as a source of IT productivity improvements rather than as a source of transformative value—which is more than $1 trillion, by our calculations.
Improvements in productivity and efficiency gains through cloud-migration programs can generate significant cost savings, but they essentially represent better ways of doing what IT already does. CIOs have a crucial role in getting the business to focus on the far bigger prize: the new businesses, innovative practices, and new sources of revenue that cloud either enables or accelerates.
One pharma company built its GxP-compliant IT environment on the cloud and uses an ecosystem of cloud services that connect with manufacturing instruments, robotics, and other systems. It has been using a combination of scaling, instance management, storage, workload processing, and data-warehousing services to accelerate vaccine development.
A large agriculture company put into the cloud the vast amounts of data it had accumulated on improving equipment maintenance and used advanced analytics to generate insights that became the basis for a new business offering to growers.
CIOs need to master cloud economics and target business areas that can benefit from the cloud’s advantages of speed, flexibility, and scale. As importantly, they need to consider how to make the large-scale changes to IT’s operating model that are needed to build the capabilities to generate new value. Fewer than 10 percent of technology leaders, however, say they are most focused on hiring cloud talent, placing it at the bottom of hiring priorities. That’s a red flag, especially considering that almost 50 percent of CIOs plan to migrate more than three-quarters of all workloads to the cloud in the next two years.”
AI will continue to improve and become ubiquitous in the year 2022. Even the most rudimentary of businesses are utilizing AI devices connected to nearly everything and using AI in:
Robotic Process Automation
Companies using AI devices accumulate tremendous amounts of customer data. This well of information just then needs to be categorized and analyzed for pro-growth decisions based on real-time data. 2022 will see a dramatic jump in the utilization of AI due to the higher speeds available through the widespread adoption of the 5G network.
Before rushing out to buy the latest and greatest in AI technology, it’s a good idea to do some research or delegate an IT innovation team to do some preliminary homework. Become familiar with the capabilities of the technology and ensure it aligns with the mid-range and long-term strategy of your organization.
In a Harvard Business Review (HBR) article first published in 2018, Thomas Davenport and Rajeev Ronanki wrote about the importance of understanding which technologies perform what types of tasks, and the strengths and limitations of each. They write, “we encountered several organizations that wasted time and money pursuing the wrong technology for the job at hand.”
Since many organizations, even large enterprise companies, can lack the necessary in-house expertise to evaluate new and emerging technologies, it’s necessary for business leaders to work closely with IT to identify the right consultants to advise on high-priority projects.
Davenpot and Ronanki found that nearly a majority of cognitive technology projects had to do with robotics and automation. Business leaders have two schools of thought when it comes to automation. Some see automation as a way to eliminate full-time employees while others see it as a way to automate menial tasks in order to make better use of its people. Amazon for instance has been looking at ways for its people to devote more time to building new products. The Hands Off the Wheel program began in the retail management division to develop ways for machine learning to handle repetitive mundane work such as keeping its gigantic warehouses stocked with products to sell.
When companies make it clear that they are using AI to help people rather than replace them, they significantly outperform companies that don’t set that objective (HBR).
Alex Kantrowitz, author of ALWAYS DAY ONE: HOW THE TECH TITANS PLAN TO STAY ON TOP FOREVER (Portfolio, 2020), writes in an article for Harvard Business Review, that Amazon’s transition to Hands Off the Wheel took years to roll out and a great deal of training. “The retail-division employees were despondent at first, recognizing that their jobs were transforming. Yet in time, many saw the logic. ‘When we heard that ordering was going to be automated by algorithms, its like, ‘OK, what’s happening to my job?’”
According to Kantrowitz, Amazon didn’t implement this program to reduce headcount but rather free up personnel to invent and oversee new product development. Kantrowitz makes an essential point: “Had Amazon eliminated those jobs, it would have made its flagship business more profitable but would have missed the next new business opportunity.
Entrepreneurship and seizing opportunities through leverage are at the heart of Amazon’s raison d’être. At no other time in history has it been as easy, fast, and inexpensive to start a new business. Amazon’s view is that it is a facilitator of entrepreneurship, providing the investment, platform, and resources to help build new businesses.
Amazon first opened its online shelves to small businesses in 2000. In 2018, the company created an internal Small Business Empowerment team. In a press announcement, CEO Dave Clark said, “We made the decision to open our store’s virtual shelves to third-party sellers. At the time, big-box retailers had been pushing small businesses out of the retail market. We bet that bringing selling partners into our store would not only be a win for customers who want vast product selection, low prices, and fast delivery, but it would also be a win for small businesses wanting to reach more customers, increase revenue and profits, and create good jobs.”
The number of US sellers who surpassed $1 million in sales grew another 15%. Kantrowitz concludes, “If Amazon is any indication, businesses that reassign employees after automating their work will thrive.”
A recent Forrester study shows that technology leaders will focus on human-centered technology transformations. Indicating that less than 15% of firms nominated digital transformation as a priority in 2022, the report suggests leading firms will use emerging technology to unlock the creativity of their employees and drive innovation that focuses on outcomes, not just financial results.
The trend of “______ as a Service” technologies has exploded in the past few years. 2022 will see more of this trend – for several good reasons.
Subscription-based business technologies:
don’t force you to buy more than you are using
are easily scalable up or down
are flexible to match market fluctuations
can be deployed easily and quickly
Maybe the best part about subscription-based technologies is the zero-coding needed to utilize them. You don’t have to have an in-house IT team. These technologies come pre-built and can integrate easily with other technologies in use within your business. In addition, because the technologies are virtual (in a cloud environment), your business has less exposure to cyber risk and a higher level of business continuity readiness.
The more data that a company creates and gathers from the public, the greater their social responsibility becomes for the protection and use of that data. Whether your company needs to have transparency, governance, and accountability regarding data to protect your brand or you have legislative and industry-standard compliance mandates to adhere to, the technologies revolving around compliance are here to stay and will be growing throughout 2022. These new compliance technologies will help streamline your compliance efforts, minimizing the effort and money expended on compliance concerns.
Employee Wellness and Retention Technologies
The pandemic has brought a wave of resignations and shuffling of employees from one company to another. Business leaders are looking to technology to make employment at their organization more attractive to prospective – and current – employees. This desire to improve working conditions for employee retention has resulted in the utilization of many technologies. These advancements range from wearables that help employees monitor wellness for a work/life balance to new features built into ergonomic forms that reduce stress and improve employees’ workday in repetitive motion tasks.
Other considerations regarding employee wellness and retention technologies are tech that improves communication and collaboration on tasks and incorporates that “water cooler” chat function lost in the social distancing and work-from-home exodus of 2020.
By using tech to reincorporate that human connection into the virtual workplace, companies are helping to give their employees more of a sense of camaraderie and belonging – rather than isolation.
Your business, like many others, is reliant upon technology to maintain your competitive edge. It’s important to know what technologies other companies are leveraging – both within your industry and the broader marketplace. But knowing that other companies are having success with or planning on implementing game-changing tech within their organizations isn’t enough. Companies that take decisive action will face the fast-paced challenges of the next few years much better than those that are more cautious. Combine strategic planning with bold decision-making as you prioritize your technology objectives for the next 12 months. You must have a trusted IT partner to vet those technologies and advise you about their potential ROI within your particular business.
2022 is shaping up to be a year of both promise and uncertainty, but one thing is sure: companies that build a platform to embrace new tech within their workflow will have an advantage out of the starting gate.
While not the magic bullet that solves all your operational problems, moving to the cloud forms the foundation of building a solid technology platform.
Businesses that took the opportunity to remake and future-proof their infrastructure and workforce during the pandemic will continue to pull ahead of the competition. As we move into 2022, it becomes imperative for companies to move to the cloud to accomplish two strategies:
Be agile and flexibly prepared for the unexpected
To Take advantage of emerging AI-enabled digital technologies
These two objectives mean large-scale changes to IT’s operating model. The more technology-savvy people in the company should take the lead in understanding what moving to the cloud would mean for the company. Target specific business areas and look at how having workflows on the cloud benefits operations through increased speed, flexibility, and scale, which are the standard hallmarks of having operations in a cloud environment.
Speed, Flexibility, & Scalability
If you want to deliver digital capabilities anywhere and everywhere, consider how the IronOrbit ecosystem uses the core capabilities of cloud computing to provide scalable and elastic IT-related capabilities. Our teams of engineers and business visionaries have taken the complexity out of migrating your environment to the cloud, so you benefit from faster time to value and reduced costs.
The improvements in productivity and efficiency can generate significant cost savings over time; however, the actual benefit delivery is optimizing IT functions. You’ll be doing things you’ve always done, but you’ll be doing them better, and your operations will be much more resistant to disruptions.
Our new automated self-service portal, IOCentral, delivers a fast and easy way to scale storage, networks, databases, and computer functionality. An intuitive interface allows you to scale business functions more quickly by connecting essential software and microservices. Using AI-enabled technology, IOCentral enables flexibility and comprehensive ecosystem management from one pane of glass.
Speed, flexibility, scalability, and reduced costs indeed represent long-term value, but those in and of themselves do not convey the urgency for moving to the cloud. For that, we need to look further ahead.
The Bigger Business Benefit of Moving to the Cloud
Taking full advantage of your move to the cloud means looking at the new possibilities available to your business because now your business is part of the global cloud ecosystem. The cloud now becomes a catalyst to build new capabilities and value propositions for your customers.
This larger prize focuses on building innovative practices, new sources of revenue, and learning from the unique knowledge flows that will inspire leadership, not IT, to create new digital value propositions for your customers.
Without the cloud, leadership will never be able to enter the competitive arena of 2022 and beyond, let alone have the possibility to innovate new products and services.
The Cloud Delivers All IT Services, Apps, and More.
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Scaling up is the ability to take on increased workloads in a cost-effective manner and meet the demands of your business without suffering the negative consequences of overreaching.
Scaling up sounds like a fantastic idea. After all, who wouldn’t want to be able to handle more work, delivering more goods and services while leveraging economies of scale for greater profitability?
But the promise of scaling is often like an iceberg. What you see above the water (the work to be done) is nothing compared to the work lurking under the water. These are the challenges faced in scaling a business. Some companies get to a point where it is painful to add another client or bring on more talent. Scaling up seems like piling on more overhead for less reward. Revenue never has a chance to turn into profits.
Here are some barriers many companies may face as they ramp up their operations.
Scaling Up Too Soon
A good question to ask a good business consultant is, Is it too soon to grow the business? Any time before you have all the pieces in place and a strategy to scale is too soon. Is the market is ready to embrace and demand your products or services? Timing is everything. First, to go big into the market is sometimes a good idea, but sometimes not. Companies get eaten alive and never recover.
No Plan to Scale Up
Often the small to mid-size business fails in the efforts to scale for lack of planning. They have an objective and a vague notion of how to get there. Growth-minded companies might partner with that vendor or hire new employees. But all too often, a structured plan is missing. Having a strategy that guides the requirements, stages, and timeline for scaling is foundational for success. As a result, the timing is off, and the company is missing pieces of the puzzle. Frustration and failure soon follow.
No Understanding of the Difference Between Growth and Scaling
For most successful companies, growth came before scaling up. Taking time to grow allows SOPs to be established and perfected. Taking the time to grow enables hiring key people and building a solid reputation. These things are critical for financial backing to scale. Growth is a time to experiment and approve or discard strategic partners and vendors. Growth helps them understand the management and IT resources required for successful scaling. Multiplying processes and output without a substantial increase in resources is the foundation of scalability. Business leaders need to know if the company is prepared to scale up.
Unnecessary or Untimely Product/Service Additions
As soon as a company begins to have a little bit of success in their efforts to scale, they often become overzealous with their efforts to take over the marketplace.
They may move away from their core business too quickly and begin advertising products and services they are not prepared to deliver. Even if they can make a dollar on those tangential goods and services, they are taking resources away from what is central to their current revenue stream and their ability to scale.
Selecting the Wrong Partners & Vendors
Companies across the planet have learned the wrong partners or vendors can put companies at risk. Long supply chains and unproven vendors can have detrimental consequences on the delivery of goods and services to your customers, as well as injure brand reputations.
Avoid vendors and strategic partners who over promise and under deliver. There is no room for freeloading. Everyone has to do their part.
Lack of Internal Communication
Employees need to know the company culture and what is expected. Companies need complete buy-in from their workforce to scale up successfully. There also must be a strategy communicated internally. Along with the nuts and bolts of your well-laid strategy is a minefield of employee concerns, expectations, and emotions that you must address. If employees feel left out of the loop – or worse, insecure in their jobs – they will not be best positioned to support scaling efforts. Internal communication requires more than just a company-wide meeting or a series of internal memos sent out to senior staff. Instead, the business leaders must keep their finger on the pulse of how the staff is acclimating to the proposed and in-progress changes.
The last decision Steve Jobs made was to build Apple University.
He knew that it would be the one legacy he’d leave behind so that his organization would thrive long after he was gone.
Once you’ve been able to leverage some economies of scale, there is often a temptation to cut prices to undercut the competition and gain more market share. “After all,” you think, “We’re still making the same amount on our goods/services.” While it’s tempting to cut your prices and try to push the competition out of business, the money you will lose is better saved and utilized within your scaling efforts.
Technology That Can’t (or Can’t Easily) Scale-Up
Whether you’re working with legacy systems that keep your productivity limited, or you’re working with on-site workstations and servers that are expensive and cumbersome to scale, your technology is limiting your potential. This roadblock used to be a nearly insurmountable one for businesses trying to scale on a budget. However, with advances in cloud-based IT infrastructure and Desktop as a Service, the financial hurdle considerations are lowered due to the cloud’s ability to scale with your business expansion. Companies across the planet have factored cloud computing ability into their scaling strategy and are successfully leveraging the flexibility, mobility, and cost-effective nature of cloud workflow assets.
As an IBM fellow, Jason McGee puts it, migrating applications to the cloud can deliver significant business benefits for companies of all sizes.
Failing to Create Long-Term Demand
Business leaders that fundamentally misunderstand the role of advertising and marketing often pin their hopes of scaling on the stop-and-go stutter-step of marketing efforts. While marketing strategy should always be a part of your scaling endeavor, it is not sufficient on its own to supply continuous, qualified customers. Instead, part of any scaling strategy should be a plan to grow market demand for your products/services. After all, you want them knocking on your door for what you provide; you don’t want to be chasing work constantly with ad campaigns.
Cash Flow and Credit
There is no way around it, scaling requires sufficient cash flow. Many organizations with a fantastic plan to scale launch that endeavor, only to find that their efforts are stymied by lack of on-hand cash or credit. In a recent episode of “What’s Up AEC?!” the Immediate Past Board Chair of ACEC National, Charles Gozdziewski warns about the cash flow aspect of scaling up too quickly. “I’ve seen small firms suddenly become part of a big project. They go from 10 people to 25 people and then they go bankrupt. They just don’t have the financing or financial knowledge to handle it.”
Each stage of your scaling strategy will require more financial backing, and that backing must be available at that stage or things begin to unravel. Setting yourself up for success requires ensuring that you will have the backing you need well in advance of your step to the next level of operational expansion.
Quality Employees Instead of Quantity
Scaling starts and ends with individuals. Whether you are in a service industry or manufacture goods, your employees can make or break your scaling prospects. As much as anything else, scaling requires the right beliefs and behavior. Growth-oriented companies need people who are comfortable with change, who can move fast, and take ownership of tasks. In the rush to scale, companies often hire too quickly and find that they experience internal roadblocks to productivity because of the unqualified staff they’ve hired. Unfortunately, companies that are quickly ramping up delivery of goods and services often don’t have time for extensive employee training or the flexibility for employees to learn “on the job.” A resourceful HR team should be among your first hires to help ensure that your business sources and hires employees that can step in and do the work without handholding.
Ignoring Growth Pains and Fixating on Growth Pains
Whether leadership is determined not to let that “one issue” hold things back or fixate on that “one issue” to the detriment of other things that require attention, it still lands the administration in a difficult spot. On the one hand, small issues at one stage of scaling can become mountains of pain in the next stage of expansion. On the other, a fixation with a specific issue can lead to an unhealthy overemphasis on one aspect of the business, throwing everything out of kilter.
To scale, you must be aware of growing pains and be able to handle them appropriately without devoting all your attention and resources to those problems.
Organizations with micromanagers at the top very often do not do well when it comes to scaling up operations. Delegating responsibility is an essential component of scaling an enterprise. A business leader must know their self well enough to see this tendency in themselves before it becomes an issue that derails the scaling process. Sometimes, it’s necessary to step into a different leadership role and allow someone that has delegation skills to fill that administrative slot. As you scale, so should your management structure. Finding the right role for you to play and bringing in the people you need to bolster your weaknesses is a sign of a good leader.
Despite significant roadblocks to developing capacities to scale up quickly, there are multiple benefits for an organization to prepare itself for the likelihood of scaling up.
The challenges of scaling up are complex because scalability isn’t just about growth. It also has to do with its ability to be flexible, agile, and versatile. The same things that position the business for expansion are the same things that prepare them for unknown shifts in the market and unforeseen events like a worldwide pandemic. Preparedness is all about becoming proactive and being strategic with digital technology.
In a Forbes article from March 1, 2021, Paolo Gallo and Giuseppe Stigliano write, “Because of the dizzying speed of change today, fueled by this umpteenth acceleration, companies can’t count on their strengths alone to innovate. The CEO of a mobility services company reminded us how crucial it is at this stage to build eco-systems, resisting the temptation to reduce them to ego-systems. We have to collaborate with third parties to build systems in which the individual parts function as a single entity, in a more or less continual way to provide high-value-added services to final customers. Companies have to see themselves as fluid platforms, capable together of providing a value proposition that is exponentially bigger than what they could offer alone.”
In one of our previous blogs, we stressed the importance of componentization as a key ingredient to offering new digital value propositions. Taking the time to componentize offerings and build a solid digital foundation for your company will also position it for agility, flexibility, and growth.
The in-depth Deloitte Insights article, Putting Digital at the Heart of Strategy, goes beyond pointing out that digital transformation enables new growth opportunities. It indicates that those companies that don’t digitize in the next five years will be doomed.
Digitizing operations, a key benefit of cloud computing, improves an organization’s ability to meet sudden increases (or decreases) in demand.
Back when most of the IT experts of today began in the industry, the only infrastructure that was readily available and dependable was on-site servers and networks that were bulky, expensive, and time-consuming to manage and maintain. The last ten years have witnessed tremendous advancements in information technology. Now, IT engineers can design, develop, and implement a company’s entire IT infrastructure within a cloud environment in a fraction of the time it used to take. This good news isn’t just for the IT experts, but for the everyday business owners as well!
Because cloud infrastructure is readily available, you can take advantage of high-powered cloud computing through Desktop-as-a-Service (DaaS). Although DaaS may sound complicated, it’s not. You can use any internet-connected device to access your operating system, applications, business data, and even your desktop settings.
What does that mean for your business? It means anywhere, anytime secure access to your company’s workflow. But that’s just the beginning of the high-impact benefits for forward-leaning companies that choose to leverage the power of Desktop as a Service.
Eliminates Grunt Work
Using a DaaS saves your IT department from having to do mundane grunt work such as application licensing, patching, and troubleshooting.
Outside of the fact that DaaS lowers your IT management cost by shifting that responsibility to the cloud provider is the fact that your organization has to spend less effort on maintaining your IT assets. Even companies that have outsourced their IT maintenance to a 3rd party still have a measure of IT housekeeping that they must do internally. DaaS makes IT maintenance and management hands-free for your staff – allowing them to be more effective and efficient in the tasks they were hired to do.
If you’re tired of employees complaining about their computers – or about the IT support – if you’re sick of doing endless updates, upgrades, patches – all to avoid the blue screen of death – DaaS is where you want to be. Most cloud providers offering DaaS have proven their ability to maintain their promise of 99.99% reliable uptime. That’s good news for your workflow and for your ability to focus on your work – not IT issues.
DaaS puts your company’s workflow in your hands instead of at the mercy of IT roadblocks, ransomware, or a natural disaster like hurricanes, fires, and tornados.
You don’t have to worry about a local network crashing – because there is none. It’s all in the cloud. You don’t have to think about losing data if your laptop dies – because your actual “computer” is virtual and all your data is stored in the cloud. Instead of having an operational IT system and a Business Continuity strategy backup system, you’re using your Business Continuity system every day in the cloud.
Since your data is stored at a secure facility offsite; or, in the case of IronOrbit, stored at multiple data centers, it is protected against onsite server failure or natural disasters. Having redundant backups provides a safety net. If a natural disaster impacts data center one, data center two kicks in automatically.
IT support teams in businesses take reasonable precautions to guard against cybercrime. These security measures cannot compete with the security technologies employed by cloud providers delivering DaaS options for businesses.
Critically DaaS shifts the security burden away from the individual device and places it within a data center infrastructure designed for the highest levels of protection. To put it simply, it would be cost-prohibitive for a small to mid-size business to hire even one IT security professional to protect their in-house systems to the level of a Tiered private cloud hosting partner.
Data is no longer vulnerable on a local device but held – and regularly backed up – in a secure hosted environment; it is also encrypted and can be made accessible only through multi-factor authentication protocols. The addition of a designated managed service provider also has its advantages. Systems are monitored 24/7. For example, a managed service provider can prevent someone from stealing data using a USB. That’s why enterprise-class organizations, the military, and the government are overwhelmingly looking to cloud providers to host their workflow. The security is there.
Enhanced Flexibility, Agility, & Mobility
We’ve already noted that cloud infrastructure along with new virtual desktops for your staff can be deployed in record time in comparison to traditional on-site IT setups. But that’s just a baseline. Consider the fluctuations of the marketplace over the past few years. The companies that survived and thrived were the ones most able to, in the words of Mohammad Ali, “Float like a butterfly and sting like a bee.” Companies need a high level of agility combined with decisive leadership that can act quickly. DaaS allows you to scale up or down easily, add or reduce capacity, and change directions on the fly if needed.
Once you’ve moved your IT system to a DaaS, mobility becomes much easier. Modern companies are flexible enough to have their employees work from anywhere and on any device of their choosing. To thrive in the new cloud ecosystem, companies will need every tool available to be resilient. Teams will have to expand and contract at a moment’s notice, and they will need to respond quickly to opportunities the moment they appear. DaaS is a building block that makes all of that possible.
Being agile and flexible enables organizations to pivot if need be to remain resilient. Mauro F. Guillen writes, in a recent HBR article, that “successful companies often pivot to a business model that’s conducive to short-term survival, and long-term resilience and growth. Pivoting is a lateral move that creates enough value for the customer and the firm to share.”
The focus is now on productivity, elasticity, and value to the customer. These are the main characteristics that will drive the proliferation of DaaS in business.
Reduces Upfront Costs
DaaS reduces enormous upfront costs. Imagine all the hardware you’d have to invest in just to get started. In-house IT infrastructure and computers have to be purchased and implemented with the next 3-5 years of business operations in mind. Recent events have shown that it is impossible to predict the next year much less project 3 to 5 years out.
Even during times of stability, it is often a challenge to budget for hardware replacement. CFOs have to also account for the depreciation of capital expenditures. From the moment you open the box on a new computer, the value depreciates. With many companies still in recovery mode, many are having to delay refreshes altogether, even at the risk of struggling with outdated technology.
DaaS provides the luxury of keeping IT aligned with workflows no matter how dynamic and volatile they may become.
Since DaaS is subscription-based, you’re renting equipment. This subscription-based model moves expenditures from a capital expenditure (CapEX) to an operational expenditure (OpEx). You’re only going to pay for what you use; therefore, if you use a lot, you’re going to pay more. Correspondingly, if you don’t use very much, you pay a minimum amount. This is a CFO’s dream come true because it streamlines operations in ways that lower overall operational costs.
CFOs love DaaS and other cloud-based solutions because of the budget predictability provided by packaged solutions but the fact that they can move CAPEX expenses into the OPEX column. This provides a range of financial and tax efficiencies. #1 in those efficiencies is that your company doesn’t have to pay a large amount of money for in-house servers and networks to be installed. And when your business grows, you don’t have to factor bigger, better servers (with bigger and better prices) into your budgets. Moving IT expenditures from CAPEX to OPEX gives you the flexibility to utilize your cash reserves for other, pro-growth initiatives. Having a fixed and predictable monthly fee certainly makes budgetary planning and forecasting much easier than the break and fix nature of on-premise servers or even in-house VPNs.
Energy Conservation Helps the Environment
You’re only one company, but you want to do your part for the environment – and you want your consumers to SEE you doing your part for the environment. Because DaaS allows you to use your devices for longer and to partner with eco-conscious cloud platforms, you can do your part for the planet without it costing you more to do so.
A study conducted by the Carbon Disclosure Project found companies that utilized cloud computing saved a total of $1.3 billion annually and reduced carbon emissions by an equivalent of 200 barrels of oil.
Just imagine the hardware and electrical power needs of even a small-size company. An organization saves tremendous amounts of energy by moving its IT system to a DaaS environment because no onsite servers are gobbling up massive amounts of electrical power. More employees working from home means fewer carbon emissions from vehicles traveling to and from work every day. When you start to consider the number of companies and the number of employees involved, the amount of carbon emissions is significant.
As our lives, work, and thinking turn increasingly towards protecting the climate, conserving energy by leveraging shared data centers will become more attractive and competitive. As this move to remote data centers matures, operators will begin to assess “greener” options for on-site power generation. Data centers are an excellent opportunity to integrate on-site energy generation facilities such as hydrogen applications, solar panels, or a combination of heat and power solutions (CHPs).
Marc Garner, VP of Schneider Electric’s Secure Power Division.The Vice President of Schneider Electric’s Secure Power Division, Marc Garner wrote in Data Center Dynamics, “Technology has become a key enabler for both businesses and consumers alike, and throughout 2020, dependency on digital infrastructure has increased dramatically. In fact by 2035, Schneider Electric estimates that all IT will consume 8.5 percent of global electricity – compared to 5 percent in 2021 – and data centers are expected to take up a large share of this demand. Many of today’s data center operators, from hyperscalers to cloud and colocation service providers, have already led the market by example, and publicly declared ambitious commitments towards Net Zero, adopting more sustainable approaches to digital business.
Microsoft, for example, has started transitioning to using renewable wind energy – a trend that will likely only continue to increase as awareness and demands for renewables from end-users and governments surge.”
Your business is moving into the future, whether your IT systems are ready for it or not. Using virtual desktops in a DaaS environment ensures you’re always working on the latest version of your operating system and applications. That in and of itself is a compelling reason to move to DaaS,
but that’s only the beginning. Consider that DaaS also gives you a built-in business continuity system. Because your data and workflow are securely housed in the cloud, you never have to worry about how much time, money, and lost opportunities you’d sacrifice if your company’s on-site server goes down.
As Gartner describes in a recent report, technologies utilized by organizations are increasingly conceptualized and implemented outside of the traditional outsourced IT department. Gartner found that the total business-led IT spend averaged around 36% of the total formal IT budget. Business leaders rightfully see digital transformation as an organization-wide discussion, and no longer the sole purview of the IT department.
This article categorized 6 key benefits for companies moving to DaaS. Depending on what priorities are driving your organization at the moment, you may be drawn to one specific DaaS advantage or another. Think about both short and long-term goals in your choice. You might consider DaaS to make hardware refresh more affordable in the short term but also reap the cost and business benefits delivered by DaaS as it has a deeper impact on the continued growth and success of your business long term.
As businesses regain their balance, the leadership must focus on renewal, not recovery, if they want to stay competitive in their market.
If there’s a lesson to be learned about the pandemic, it’s the importance of being adaptable. Another critical quality for survival was speed. There wasn’t much time to deliberate. Companies had to act fast. Acting with speed and agility wasn’t tied to the size of the company. It was less about ability and more about choosing to be quick and adaptable.
Covid-19 changed how we live and work on multiple levels. We’ve seen accelerated changes in consumer and business behaviors that are likely to persist. Strategies meant to restore things as they were before the pandemic will prove frustrating.
Business leaders need to look beyond recovery. As Rebecca Brooks points out in her article for the Forbes Agency Council, the pandemic revealed the flaws in our systems. All of them. Whether they were socio-economic, corporate, or governmental. “That’s why I’m not trying to lead my company back to where it was in December of 2019,” she writes. “That place and time are gone. I want a renewal— not a recovery — so that our people are equipped and prepared to handle the challenges we’ll face today and tomorrow.
Because businesses and consumer behavior will never be the same, business leaders are looking for technology, specifically digital technology, to lead the way. Digitizing operations use the technology to replicate an existing service in a digital form. Becoming digital means using technology to transform the service into something significantly better. Companies can’t afford to drop the value propositions that work, at least not right away. Nor can they afford to settle with running the business as they had before the pandemic. It is a different market now. In this climate of rapid change and delivery, there’s nothing worse than complacency.
Be Inspired by Technology
The whole idea behind digital transformation is to leverage all the potentialities of technology (namely cloud computing, the Internet of Things, and artificial intelligence) to create and deliver better products and services.
Why is the ability to be inspired by technology such a prized commodity? Because now you can conceive an idea, get it funded, bring it to life, and scale it easily, quickly, and more economical than ever before. Andrew Hessel, a distinguished research scientist at Autodesk, said, “The gap between science-fiction and science is getting really narrow now; as soon as someone has the idea and articulates it, it can be manifested in a short time.”
A recent Gartner report on identifying future work trends recommends several methods for creating a future-of-work strategy. The recommendations include using the visionary imaginations of science-fiction writers. Apparently, there are many organizations already employing science-fiction writers to develop bold ideas. Gartner points out that creative thinking is critical for moving past incremental innovation. People often become trapped by cognitive biases (what they know and expect from everyday experiences). They become unable to see potential futures because they are weighed down by the limitations of present conditions.
While the crisis of covid-19 has boosted innovations in technology, it has also created shock waves of uncertainty which are particularly felt by investors and multinational companies. Having witnessed the vulnerability of long-distance supply chains, many business leaders are looking for more local options to replace global manufacturing partners.
The Spanish clothing retailer ZARA, founded in 1975, is one company that has been ahead of the trend. While most clothing brands floundered during the pandemic, ZARA was able to keep things moving because they had a shorter supply chain. Not an easy feat to pull off, especially when you have 2,270 stores worldwide. Most western brands use offshore manufacturing in Asia, where labor is much cheaper. The time between design and delivery of the finished product could be months.
Because ZARA used local manufacturers, they moved quickly from design to delivery in a matter of weeks. ZARA also benefited from having no stockpiles of unsold inventory, and they were able to respond to consumer trends promptly. This strategy of using local suppliers turns out to be an effective model. Other companies: in other industries have begun to follow its example.
The clothing industry was one of the markets hit the hardest during the pandemic. The manufacturing of clothing requires the work of many people. Consider that, in Asia alone, the clothing industry employs 43 million people. So, when clothing sales fall 73.5 % in the United States, Bangladesh loses out on $3.2 Billion in canceled clothing exports.
Worldwide, factory jobs will soon be a thing of the past because everything has been automated. Low-skill labor of all kinds will slowly continue to disappear over the next decade. It is anticipated that 1 out of 16 people will have to change occupations between now and 2030. This era of occupational transitions will require the need to train millions of people for new jobs. What benefits, such as sick leave or unemployment, be available for all workers (including gig workers)? The main areas of job growth will be highly skilled occupations: including teachers and training instructors.
According to McKinsey & Company, consumer behavior that shifted in response to Covid-19: such as ordering groceries online and virtual healthcare, will continue at higher levels. E-commerce is booming. The virus also initiated a reversal of some behaviors, such as investing in the home. As the pandemic subsides, some consumer behaviors disrupted by Covid-19, including entertainment, leisure air travel, and remote education, will eventually make their comeback.
Hybrid or Fully Remote Workforce
During a video roundtable discussion entitled “What’s Up AEC?” Nvidia’s Senior Solutions Architect, Jimmy Rotella, said, “We had always seen a remote workforce coming. Analysts say that the pandemic has actually accelerated the work-from-home movement by 5 to 10 years.”
Now, there is a real focus on employees having options. They can work from home, in the office or both. In fact, the “employee experience” has become equally important as the customer experience. Providing a great experience to both customers and employees is a defining aspect of a company’s brand.
· 83% of workers do not believe they need to be in an office to be productive
· 43% believe they would be more productive working from home
· 70% of those surveyed between the ages of 16–44 want to be more mobile at work
· 88% use smartphones for work daily
· 49% use a tablet minimum of three times per week.
Now that the pandemic is winding down, organizations continue to think about how they want to work moving forward. Most employees now have a taste of what it’s like to work from home, and they want to keep it that way if possible. The trend for most companies has shifted in favor of remote and hybrid working scenarios. Owen Hughes writes, in his attention-grabbing article SPENDING ON TECH IS ABOUT TO ROCKET. BUT IT WON’T BE THE IT DEPARTMENT DOING THE BUYING, that the growth in IT spending will be around companies digitizing operations (moving to the cloud) and becoming digital.
Welcome to 2025
The post-pandemic acceleration in the adoption of technologies is pushing us into the future at breakneck speeds. The new word for this rapid adoption of new technologies is tech-celeration. Experts estimate the acceleration is at least 5 years. Healthcare and higher education are among the industries that have probably seen the greatest push towards tech-celeration. For example, in the United Kingdom, the National Health Service built a telehealth system over a weekend and rolled it out to doctors across the country by the end of the following week. There were similar scenarios in the United States.
Although e-learning has been available to the public since 2000, it has been relatively dormant in university settings until the pandemic. Now, the online education market is expected to quadruple in revenue by 2026. Educational institutions are more open to using computers for distance learning and developing more robust online degree programs.
IT Moves to Center Stage
According to analysts, the surge in IT spending this year won’t come from traditional IT departments, but other areas of the business undergoing digital transformation. These units see IT charged as a cost of revenue or cost of goods sold.
John-David Lovelock, research vice president at Gartner, said: “IT no longer just supports corporate operations as it traditionally has, but is fully participating in business value delivery. Not only does this shift IT from a back-office role to the front of a business, but it also changes the source of funding from an overhead expense that is maintained, monitored, and sometimes cut, to the thing that drives revenue.”
Mark Samuels’ May 22, 2018, article warns readers of the many pitfalls associated with digital transformation even as it acknowledges its importance to business renewal. A few years later, this urgency to transform into digital companies is as intense as ever. Like the acceleration of remote work, the pandemic pushed up the digital transformation agenda for everyone.
Covid-19 created the opportunity for new businesses, as well as new types of businesses to emerge. According to the earlier referenced survey, the number of new business start-ups has doubled in the USA since 2019. During Covid-19, however, many workers in the United States were furloughed, laid off, or simply dropped out of the labor force for other reasons, and thereby embraced the opportunity to create the start-up of their dreams. New job titles have appeared on the horizon. For example, the research company Econsultancy tracked the use of the chief data officer title on LinkedIn for two years. In April 2016, 2,899 people were identified as chief data officers; by February 2018, there were 11,418.
Because of the changes brought upon by the pandemic digitization increased faster than ever thought to be possible and pressured many companies to move faster than they would have liked. It is now an on-demand economy (compliments of the cloud ecosystem). This is a new industrial revolution driven both by fear of digital disruption and the opportunities created by the cloud ecosystem.
The disruption caused by Covid-19 also offers a path to higher productivity and broad-based growth. Digital enterprises like Netflix, Google, and Facebook will only continue to get bigger. The Amazon model of fast and direct delivery will continue to blaze a path through online shopping.
Although the pandemic has contributed to a slowdown of globalization, the world has grown too integrated for globalization to be stopped. According to The Economist magazine, the biggest missing piece of the global puzzle is for business and government leaders to make interdependence work with resilience. Technology, and how people use it, will surely play a critical role.
Even before the pandemic lockdown, social media, mobile, analytics, cloud computing, and the Internet of Things pressured companies to become more digital. Digital technologies deliver ubiquitous data, unlimited connectivity, and massive processing power. Digital technologies enhance both the customer experience as well as employees.
Becoming a digital company means delivering new and improved product features. Too many executives rush into transforming their companies to become digital. Digital business transformation is a long journey. Leaders need to commit to the long haul while sustaining existing business.
Take notice of industry trends and identify which ones will have the biggest impact on your organization. Identify where your company has the greatest competitive advantages. Play to those strengths. Build relationships with providers who are dedicated to your success and whose expertise you can leverage.