Over the past few years, cloud technology was used for optimizing costs and delivering scalability. However, it is not the same anymore. Today, cloud technology can drive enterprise innovation. Leading tech companies are already using the cloud’s potentiality to enable innovation. Apart from this, cloud technology offers agility, scalability, and global reach demanded by businesses striving to embrace innovation. In general, the cloud business is the ideal medium for enabling innovation, but multiple efforts fall short as businesses lack transparency and commitment at the operational level.
Businesses of all sizes have adopted cloud solutions to reduce capital expenditure requirements, but very few have advanced the technology to its rightful role as the pioneer of innovation. In the long run, cloud service will play a significant part in achieving business transformation through innovation. Some business leaders feel that they are new to this cloud technology. However, online payroll processing and online banking websites are the best examples of cloud business.
Businesses are leveraging cloud technology for innovation in the following ways:
- Starting a new cloud business
- Performing different roles in the existing cloud businesses
- Creating new products and experiences
Ways to Use Cloud Technology for Innovation
#1: Starting a new cloud business
Traditional companies face predicaments in competing with cloud business as they are limited in their ability to accelerate at the same pace. As such, traditional businesses need to start a separate cloud-native business. Happily, cloud technology enables businesses to achieve magnificent transformations through innovation. But, doing so demands strong operational support for the new technology. Besides, it sometimes demands a complete change in the strategy. Organizations must change their focus from taking cost out of the value chain to bringing innovation and agility in their operations. For becoming a cloud business and transform the business ecosystem, you’ll need to consider:
- Expanding product and service feature set while improving ease-of-use
- Capitalizing on the cloud’s capability to support sophisticated customer journeys
- Leveraging cloud’s agility to anticipate your customers’ needs
- Adopting a cloud technology that facilitates your entry into a new industry or market
To capture future-shaping opportunities, firms must also invest in growing their market position quickly. Artificial intelligence and related technologies can support organizations in their quest for new capabilities and enhance organizational agility and flexibility. For instance, automation can transform and accelerate agile development that supports both process innovation and capabilities that cloud business necessitates.
#2: Establishing a Business Ecosystem
Organizations can employ cloud technology for innovation by establishing a business ecosystem. Some companies aim to start over freshly. But, this is not the right approach. Instead, firms need to re-engineer their operating model to enable innovation.
- 69% of organizations declare they are cloud-enabled innovators
- 74% of organizations state that cloud adoption has significantly increased their customer service and experience
- 72% of enterprises report that cloud initiative has accelerated expansion into new industries
Some companies strengthen their existing customer strategies by improving the efficiency of their current operating models. Innovative businesses leverage cloud technology to create new products and services and incorporate new channels or payment options into their business models. Transforming into a cloud business enables organizations to develop new operating capabilities by rearranging their business ecosystem.
#3: Creating New Products and Experiences
Businesses can use cloud technology to build state-of-the-art products. By coupling multiple cloud initiatives into a coordinated program, organizations can drive enterprise agility. It eventually enables businesses to deliver new products and services and keep ahead of the competition. Businesses of all sizes can deploy cloud technology or transform into a cloud business to achieve business outcomes such as:
- Providing more personalized products and services to market faster
- Accomplishing tighter business integration with the business ecosystem partners
- Attaining incremental revenue gain
- Reducing operating costs
- Lowering capital investment
- Developing more efficient tech organization
- Redefining customer engagement
- Targeting customers in different industries and geographies
- Expanding products and services portfolio
Moving beyond innovation, two out of five respondents state that cloud adoption has helped create and support new business ecosystems and models.
Get Started with Cloud Technology
The cloud is a crucial platform that drives enterprise innovation. Therefore, transform your company into a cloud-enabled business. To get started with cloud technology:
- Set up a cloud governance board for your enterprise’s cloud strategy, installation, and deployment
- Assess how the cloud might transform your customer relationships and your value chain
- Evaluate your company’s strategic plans, competitive setting, and current capabilities
Besides, businesses should direct invest in innovation rather than optimization. Cloud technology adoption is on the rise these days. By adopting a cloud-based solution, an enterprise can prevent a lot of operational challenges.