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.
DEMATERIALIZATION
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.
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.”
The term artificial intelligence was coined by Dartmouth math professor John McCarthy in 1955.
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:
Voice Assistants
Smart TVs
Smart Whiteboards
Language Translation
Mobile Devices
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.
Amazon has about 350,000 mobile drive unit robots working alongside hundreds of thousands of humans employed at fulfillment centers.
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.
Subscription-Based Technologies
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 cost-effective
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.
Compliance Technologies
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.
In Conclusion:
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.
Introducing IOCentral
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.
Be ready to use new digital technologies and stay ahead of change. Call now for a proof-of-concept of how IronOrbit can prepare your business for sustained success.
Two dangerous weather fronts are bearing down upon businesses today.
What does future-proofing your company mean to you?
If you have a sinking feeling that your organization moves too slow, units are too siloed, or you’re still hobbling along on outdated legacy systems, you’re probably right. Your organization is overdue for future-proofing initiatives.
The age of standardization and predictability has disappeared. The concepts that will keep you afloat in the coming tsunami are agility, adaptability, and flexibility.
So, where is the threat to your business?
Let’s take a look.
Company leaders now have to grapple with the convergence of four intense pressure points.
Increased Connectivity
Lower Transaction Costs
Unprecedented Automation
Shifting DemographicsThat is one storm.
The other is a technology storm called SMACIT.
Social
Mobile
Analytics
Cloud
Internet of ThingsEach storm is a formidable force in and of itself. Together, they’re like the collision of two hurricanes that will wash away unprepared businesses.
As executive leaders, we must look for markers signaling shifting market trends and changes in customer expectations. Companies must be prepared for the unexpected as much as possible.
It’s a tall order, and you could be asking yourself, “where do I begin?”
The Technology
Future-proofing your organization is about much more than technology. But implementing foundational technology is low-hanging fruit that can be integrated into your current operating system perhaps much quicker and easier than you thought possible.
For any company looking for elasticity and wants to stay competitive, transactions and work environments are mainly in the virtual world. Mobile workflow, virtualized workplaces, and market environments will be the rule, not the exception moving forward.
A wide range of high-tech productivity tools and communication solutions offer simple, cost-effective ways to equip a remote workforce of any size effectively. As miraculous as all these technologies are, they are just a tiny fraction of the universe we are all about to enter.
The Journey
Future-Proofing is a journey, not a destination. As your business grows and matures in parallel with new technologies and market expansion/fluctuation, you will have to give ongoing attention to preparing your business to face and succeed against a new, emerging range of uncertainties. Flexibility, adaptability, and scalability are the essential goals – all of which are powerful benefits of being a part of the IronOrbit cloud ecosystem.
The Partner
The IronOrbit cloud ecosystem is the ultimate solution in flexibility, security, and reliable speed. Tools like INFINITY Workspaces and IOCentral represent a cutting-edge breakthrough approach that makes adoption comfortable while keeping a close watch on ROI.
IronOrbit allows you to keep an eye on expenses while enjoying a comfortable, 100% built-for-you experience. If you’re beginning a digital transformation journey, start by letting us host you on our secure private cloud. We will tailor every component to the needs of your organization.
Our baked-in scalability provides a cost-effective, easy-to-use way to scale up or down as needed. Being in the IronOrbit cloud offers a framework for your data to have heightened security and more agility t to meet customer demands.
We are here to help you. Please arrange for a free no-obligation consultation with one of our representatives today.
Future-proofing is the process of preparing for anticipated (and unanticipated) business disruptions. It has always been problematic but is now even more of a challenge.
In this article, we’ll explore the “why” and “how” of future-proofing your business and provide actionable steps to take.
The Future-Proof Challenge of Quickly Evolving Technologies
The rapid acceleration of technology has made future-proofing a business exponentially tricky.
Jimmy Rotella, Sr Solutions Architect at Nvidia, said in a recent episode of “What’s Up AEC?!” that 2020 accelerated a work-from-home movement that was inevitably going to happen in 5 to 10 years.
In an October 2021 Harvard Business Review article, authors Michael Mankins, Eric Garton, and Dan Schwartz write, “technology was already changing the nature of work before Covid-19 took hold. Innovations were redefining the basis of competition in most industries and, consequently, the talent companies need to win over the long term.”
Companies held on by their fingernails for economic survival. The article points out that the businesses that took the lead in the aftermath were the ones who seized the opportunity to remake their organizations and adapt to the new environment.
Disruptors in the Marketplace
Business leaders are worried about what’s going to happen to their companies moving forward. KPMG reports that 74% of CEOs are afraid of some new company disrupting their business model.
Eastman Kodak, a 120-year-old company, declared bankruptcy. If business leaders do not manage ongoing innovation, they’ll be presiding over decline and collapse.
Companies look for indicators of possible future disruptions. Things could be going perfectly today, and the next thing you know, someone does it better than you, faster than you, and cheaper. Focus on solving specific problems for your customers. What will the market share be for a product or service in Q4 next year? How about the year after that? Part of this inquiry requires discovering where the weaknesses are in an organization. Spending more time on future-proofing an organization increases your chances of being more proactive instead of putting out fires as they happen.
The Statistics Aren’t on Your Side
Forty thousand companies out of one million will last over ten years. That means that 960,000 go out of business before their first ten years, and only 45 companies out of a million last 100 years.
Why are these figures so grim? What is it that makes preparing a business for future needs such a daunting task? To understand the background of the problem, let’s look at a parenting metaphor.
Parents spend nearly twenty years preparing their children to enter the adult world. In essence, those parents are “future-proofing their children. After all, Mom and Dad don’t know what the world will be like when the children reach adulthood, what kind of people they will encounter, what troubles will come their way, and what dangers they will face. The children will have to be self-sufficient, capable, and adaptable to the inevitable change that will take place during their lifetime.
Your business is no different.
It must be prepped for any eventuality. Every variable is considered.
As we have experienced over the past few years, the future is uncertain. But, with the right preparations, your business can move confidently into the future. The right technologies and strategies can put a forward-leaning company ahead of the competition that hasn’t invested in preparedness.
Let’s explore future-proofing your business, so you can outpace your competition when the next market fluctuation takes them by surprise.
The Connection Between Future-Proofing and Your Company’s Lifecycle
Tendayi Viki, an author, and corporate innovation expert gave an insightful keynote address at the 2019 Solita Meeting Point, where he drew direct connections between future-proofing companies and their lifecycle.
Tendayi Viki, an author, and corporate innovation expert, gave an insightful keynote address at the 2019 Solita Meeting Point. He said all business models have a life cycle, and the problem many companies make is taking the life cycle of a business model and making it the same thing as the life cycle of the company. These cannot be the same thing if you want to future-proof an organization because it chains the two life cycles together. Future-proofing should develop a portfolio of business models (not to be confused with a portfolio of products) that balance risk and return.
McKinsey reports that only 6% of executives are satisfied with their company’s innovation.
Implementing multiple business models is a strategy to gain a durable advantage and strengthen resiliency against disruptive forces.
Coming up with ideas isn’t so much a problem as shaping those ideas into new value propositions that resonate with customers. Combine those value propositions into sustainably profitable business models. New value propositions require innovation. The objective is to build a portfolio of rising and fall business models to strengthen resiliency.
Reduce uncertainty by experimenting with ideas so that they become sources of revenue.
Innovation Readiness – Embedding Flexibility Into the Future of Your Business
As work and customer transactions continue to grow in a virtual environment, the need to experiment with ideas and business models in the digital realm will grow. Experimentation requires a purposeful engagement between leadership, employees, and technology.
According to the previously mentioned Harvard Business Review article, few business leaders “manage engagement with technology in a coordinated way, so employees become suspicious of it, and the technology underperforms management expectations. That’s a pity because when people and tech work together, everyone benefits.”
The article tells how USAA Insurance uses an integrated approach to developing and deploying AI-enabled tools. The use of next-generation technology frees up people on the claims team to focus on helping customers. “This kind of work is more satisfying for the people and better leverages their capabilities.”
The Future with Your Customers
One aspect of preparedness that makes becoming digital a competitive necessity comes from the customer engagement side.
As Deloitte reports, in nearly every industry across the globe today, customer expectations continue to rise. An explosion of device types and data means that most consumers now expect personalized experiences and increased access to increased amounts of information, when and where they need it. As the number of touchpoints grows, the customer wants “same customer” recognition at every point of interaction. Customer service is more than easy engagement. Today’s customer wants to be necessary each step of the way.
Customers expect products and services tailored to them in personalized, contextual interactions. Customers also wish to read reviews from other customers. The days of siloed IT systems and business functions are behind us, and those who do not realize this will soon be out of business. There is genuine pressure today, much more than a couple of years ago, to digitize operations and become digital companies. There is no time to lose.
These are the four interrelated trends culminating in unraveling the old management rules and the traditional structure of organizations. (source: McKinsey Reports)
Future-Proofing Your Profitability
A recent McKinsey report found that the top 20 percent of companies earn 95 percent of economic profit. Any organization that isn’t seeking new approaches is on borrowed time. By leveraging current technologies and embracing experimentation, organizations can discover new ways of doing things that are not as fragile and vulnerable to unpredictability.
Companies must define data, business, and infrastructure components and design them for reuse to succeed digitally. Reconsider customer offerings in terms of individual components (see the Lego analogy in Part 2 of Why is Digital Transformation So Important to Sustained Success?). One of the powerful benefits of being digital is the repository of reusable business, data, and infrastructure components.
The “How” of Future-Proofing – Operational Backbone and the Digital Platform
The operational backbone supports core business processes and relates to operational excellence. This set of systems is the cost of entry for doing business digitally into the future. In Designed for Digital, Jeanne Ross explains that companies with an adequate operational backbone are 2.5 times as agile and 44% more innovative than companies without an operational backbone. The digital platform, built on a foundation of cloud services, delivers new sources of revenue, leveraging the capabilities of digital technology to enhance customer engagement and solve customer problems. Digitizing operations is a much easier and shorter journey. Most companies experienced a certain amount of it during the pandemic when they had to, under duress, move to remote work environments. Full-on digital transformation is an ongoing process.
Think of it as a journey. New technologies show up on the horizon so frequently that companies have to adapt and adopt almost on the fly. Operating on legacy systems will make this level of agility impossible. Traditional siloed business environments will also prevent progress. It’s far too slow.
The traditional hierarchy of the corporate organizational chart is mechanical by design. Built on antiquated 18th and 19th Century Industrial Revolution ideas, the focus was uniformity, bureaucracy, and control. These are the antithesis of what companies need to focus on today. Now we need creativity, elasticity, and speed.
Protecting Your Data into the Future
From a technology perspective, companies must build ways to capture and store data because even if they don’t know how to make practical use of this gold mine of information now, they will figure it out shortly. An essential aspect of paradigm-shifting towards a future-proof strategy is realizing how important data will become for the long-term success of your business. Think in terms of components and modular applications. These are things that can repurpose for something else. Tap into the power and multiple benefits of accessible scalability-based technologies. Learning to utilize connecting and scaling data will enable companies to develop new products and digital value propositions.
A Future-Proofed IT Environment
In Four Factors to Help You Future-Proof Your IT Environment, Vivek Agarwal writes, “future-proofing means taking steps so you’re able to flex and expand as needed for as-yet-unknown needs and opportunities.” He goes on to explain how the cloud can make companies more agile in meeting customer needs. Moving away from traditional data centers into scalable cloud infrastructure can make enterprises nimbler and more adaptable.
“When a flower doesn’t bloom, you fix the environment in which it grows, not the flower.” – Alexander Den Heijer
Your core business – the value you deliver to your customers – is the flower that must be protected and nurtured.
With the evolution of technology and fluctuations in the market, the soil that your core business is in may change.
Future-proofing your business means fortifying the core business to thrive in whatever soil conditions it finds itself.
CONCLUSION
As a technology website, we are writing about technology and how digitization impacts all levels of business and the customer experience. But here’s the thing, technology is only a means to an end. Let’s summarize your next steps in the future-proofing your business.
Take advantage of cloud-based tools and digitizing operations to future-proof your business. They are merely ways to grease the rails of adopting new ways of doing things and liberate the most precious of your resources – people – from tedious manual input tasks.
Build easily scalable systems. Scalability will also impact flexibility so that management can focus on inspiring and revitalizing their teams and organizations.
Shift your team’s focus from reacting to the unexpected to one of possibility thinking. Human creativity and resilience work best in flexible environments that nurture growth, reward their strengths, and help compensate for their weaknesses.
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.
Verne Harnish’s book Scaling Upshows how to improve scalability. Scalability requires putting the right team together and then educating them on the growth strategies of the company. Articulate a clear vision for meeting future goals regularly.
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.
Cutting Prices
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.
Scaling up starts and ends with individuals. Make sure you have the right people in the right seats.
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.
Micromanagement
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.
In Conclusion
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.
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.
Market Trends
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.
ZARA, one of the most known retail companies in the world, has built its success on a solid cloud-based infrastructure.
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.
Job Growth
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.
Consumer Behavior
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
McKinsey and Company assessed over two thousand work activities to evaluate what work can be done without any activity loss in a work-from-home environment. In their research, twenty to twenty-five percent of the workforces in advanced economies were able to operate effectively without losing any of their efficiency. The number of remote workers since the pandemic has increased four to five times. Companies are now devising hybrid remote work plans that enable them to reduce office space saving money and increasing profit margins while giving workers more location flexibility.
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
& Tech-Celeration
Zipline has made more than 150,000 commercial drone deliveries including blood, medicines, and vaccines. It has transformed national health systems by expanding access to care for millions of people.
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.
IN CONCLUSION
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.
Like it or not, we are living, no….thriving, in a cloud ecosystem economy and there is no turning back.
What is a Cloud Ecosystem Economy?
Just as a biological ecosystem consists of all the organisms and the physical environment with which they interact, the cloud ecosystem is a complex system of increasingly interdependent components all working together. The cloud ecosystem economy is the great catalyst that levels the playing field for all businesses. This is an explosive ecosystem that expands the reach and scope of every business that taps into it. It has also increased the power of the individual and made available vast amounts of knowledge flows. That’s one of the reasons why Rene Buest’s, article How Tech CEOs Participate in Ecosystems, describes this phenomenon as a continually evolving ecosystem that forms the basis of innovative digital solutions and products. It’s why Jeanne Ross prescribes cloud services as the foundation for all digital offerings; thereby become the bedrock for digital transformation.
It is true to say that the Cloud is just someone else’s computer. That is one way to think about it, but it’s far from presenting the whole story. What cloud technology makes possible goes considerably beyond computing capabilities. We’re talking about many kinds of immense databases and knowledge flows the cloud taps into. We’re talking about synergy and exponential growth (see Moore’s Law).
Imagine if you owned a business at the beginning of the 20th Century and hadn’t yet adopted telephone technology. How long could you have remained competitive in such an environment? While business leaders don’t need to understand the ins and outs of the technology, they must understand how the technology impacts the future of their business.
In a recent report, the data analysis company Ecosystem cites three reasons CEOs need to get involved in and have visibility into an organization’s cloud investment.
A study from Ecosystem, a technology data, and analysis company, showed the main cloud benefits sought by companies considering cloud migration.
Cloud Enables Transformation
Enterprise companies have matured in their Cloud adoption. Decisions are no longer driven by the benefits of shifting Cloud from CapEx to OpEx. The top 3 Cloud benefits sought by companies are
1. Improved Service Levels & Agility 2. Increased Work Process Efficiency 3. Flexibility & Scalability
The idea is that the Cloud Ecosystem is a group of technologies and resources that empower infrastructure and open the doors to a world of digital value propositions not yet imagined. The Cloud Ecosystem is an enabler of doing business, real-time data access for productivity increase, and process automation. This impacts the entire organization and involves prioritizing the needs of certain functions over others. These are not decisions the CIO should make alone.
The Cloud is Not Cheap
Cloud adoption may not reduce costs. Ecosystem360 found that over a third of the organizations surveyed find the Cloud more expensive than traditional licensing or owning the hardware. As businesses use the Cloud to scale, several aspects are dynamic and require constant reassessment. In many cases, companies have found themselves having to find and recruit new teams to manage and maintain the Cloud environment. This is not an issue with IronOrbit. Because IronOrbit offers an all-inclusive solution, you don’t have the high, unexpected, added cost of third-party IT resources. Instead, you get a predictable monthly fee.
Joining the Cloud Ecosystem Gives You Access to Emerging Technologies
Tom Wujec is a fellow at AutoDesk and a global leader in 3-D design, engineering, and entertainment software. He said, “When any industry becomes computable, it goes through a series of predictable changes: It moves from being digitalized to being disrupted to being democratized.”
The Democratization of Disruptive Technologies
While it is true the technology and business world is disruptive; it is also becoming increasingly democratized. The Cloud Ecosystem is a principle conveyor of new technology adoptions. Companies have to be a part of the Cloud Ecosystem to leverage emerging technologies (democratization) or face disruptions from competitors who beat them to the Cloud. Returning to the Ecosystem article, “Cloud is no longer only required for infrastructure and back-up, but improving business processes, by enabling real-time data and systems access. Similarly, IoT devices will grow exponentially.
The Cloud Ecosystem Economy was well on its way before the recent pandemic, which only further accelerated the use of cloud-based solutions. The Ecosystem findings suggest Infrastructure-as-a-Service (IaaS) will remain the key area of focus, especially Desktop-as-a-Service (DaaS).
“The gap between science-fiction and science is getting narrow now,” said Andrew Hessel, a former research scientist at AutoDesk and now co-chair of Bioinformatics and Biotechnology at Singularity University. “As soon as soon as someone has an idea and articulates it, it can be manifested in a very short period.”
The Cloud Ecosystem has left the purview of the IT department and is now part of the board room discussions. Technology is no longer just a point solution. It is a collaboration between humans and machines because, with the help of the Cloud Ecosystem, business leaders can understand the whole range of viable possibilities beyond what any human mind can comprehend on its own. It is time to take advantage of what’s possible. Be inspired by technology and what it can do to increase value to your customers.
Business leaders recognize that taking advantage of the Cloud Ecosystem Economy is about creating a platform for efficiency, innovation, and growth. In a 2021 Harvard Business Review Survey amongst CEOs, 87% said that Cloud would be a critical component to achieving sustainability goals to a moderate or significant degree. The article also reported that only 37% of C-level executives had fully achieved the outcomes they expected from their cloud initiatives. Rene Buest reports, “Only about 3 in 10 CEOs reported complete confidence in their organization’s cloud migration initiatives to deliver expected value at the expected time.
Many variables come into moving legacy systems into the Cloud. There are many pitfalls on the way to cloud migration. Certainly, a big part of the challenge is having the skills on hand to take advantage of the Cloud. More often than not, companies can be so eager to take advantage of what cloud technology offers that leadership makes their choice on price and expediency alone. It looks like a good deal at the moment and they go for it without regard to how it will fit with their company.
Don’t make the same mistake. IronOrbit offers comprehensive, professionally managed services for a predictable monthly fee. We build it for you so that it works. You don’t need to wonder if you have the right skills in-house to make full use of it. At the same time, you’ll have all the flexibility and control that you want.
We invite you to check out our INFINITY Workspaces demo and then do your own proof-on-concept.
Mastering emerging technologies has always made the difference between companies remaining competitive or falling behind. Digital transformation applies IT and technologies to improve business outcomes. Becoming digital is the main ingredient for sustained success.
Every enterprise, including yours, faces a choice between innovation or extinction. Your customers, your channels, and probably most, if not all, of your competitors have all gone digital.
As technology continues to evolve at exponential rates, digital transformations will accelerate. Social, Mobile, Analytics, Cloud, and the Internet of Things (SMACIT) all contribute to the accumulation of data. Consumer data has become more available and more useable than ever before.
Becoming a truly digital company is a process of redefining your business strategy and even your organization’s culture. The digital strategy leverages an engaged intuitive work culture to create, experiment, and respond to data with increased agility and speed.
Digital transformation is a great democratizer of business: it levels the playing field. It provides low-cost tools and enables strategies that give small and mid-sized businesses a fighting chance to compete at the same levels as enterprise companies.
The most successful digital transformed companies have used real-time data as a roadmap to change their business processes and have developed models for improved customer experiences. Using ubiquitous data, unlimited connectivity, and massive processing power, companies no longer have to guess what their customers want. They only have to collect the data and learn the answer. Unlimited connectivity means responding immediately, even proactively to customer needs.
Data is an essential ingredient for making all of this work.
Designing for digital means collecting the data, having it protected, analyzing it properly, and applying the findings.
Businesses can no longer rely solely on offering a portfolio of products or services. They have to solve customer problems and be anticipatory.
Digital technologies can enhance the customer experience, and even provide new digital value propositions. Digital companies build, buy, configure business, data, and technology components. Working with these components, people can quickly assemble solutions from parts that already exist. A digital platform keeps track of all the components, so you have the one you need when you need it. The foundation for building such a digital platform is cloud technology.
Since not all clouds are the same, you’ll want to shop for the cloud service provider that will fit your business strategy for the long term.
IronOrbit specializes in customizing comprehensive cloud services that fit and support long term strategy. We’re here to help you begin the journey of digital transformation on the right foot.
IronOrbit’s INFINITY Workspaces offer Infinite Upgrades, Infinite Computing, Unmetered Bandwidth, Cybersecurity, Backup & Disaster Recovery, and 24/7 US-based Support, all for one predictable monthly fee.
Please contact one of our consultants at 1-800–753- 5060
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
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.
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.
