Cloud-computing advantages and challenges from a business point of view
During last Friday lecture, we talked about several benefits of cloud-computing and the brand-new solutions it provides for information system users. For instance, Deputy Director & Deputy State CIO, Chris Cruz told us about the way cloud-computing had been a solution to save time and money while gathering the information of all departments on a unique database –all these departments used to work separately. I will analyze more precisely the range of advantages, but also the challenges associated with the implementation of cloud-computing from a business point of view.
Many dimensions of running a business are affected by the information system used by its employees. Thus, a company may encounter many problems related to its information system: let’s focus on some of them and show how cloud-computing could offer an effective solution. When employees type data by hand for instance, it induces a risk of losses due to errors or troubles to find the right data in a timely manner. Cloud-computing could enable both to increase time-efficiency with automation, but also to reduce errors and to improve information sharing [1]. Therefore, it increases process effectiveness and efficiency and enables better decision making through the centralization of information, which becomes accessible from any device. Inevitably, all these improvements lead to a higher customer satisfaction.
To successfully run a business, it seems right to opt for a cloud-based solution. However, the management could also face several challenges. First the managers should focus on technical problems while implementing it. A good way to prevent these problems is to mind the scale at which the cloud solution is tested, and to start with a small one. Problems can also arise from connectivity issues, especially in countries where internet coverage is low. Another crucial point is to choose wisely one’s cloud vendor [2]. The managers must consider the size of the company and their sector’s specificities to find an appropriate cloud provider with a strong expertise in this field.
In addition to these overall challenges, it is worth considering the challenges related to the different company levels. The strategic level –involving top managers– is responsible for driving up the profits of the company. On the other hand, the managerial level aims at involving all employees in the implementation process, which is crucial for a successful development of the cloud-based solution. The managers must enforce controls to make sure all employees feel personally concerned. Finally, we should consider the operational level. At this level, it is of utmost importance to train workers, which is very time-consuming and expensive. It is nevertheless crucial to face potential resistance from the employees to adopt a cloud-based solution. [3]
[1]https://www.skyhighnetworks.com/cloud-security-blog/11-advantages-of-cloud-computing-and-how-your-business-can-benefit-from-them/
[3]https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&ved=0ahUKEwizkJjho_nUAhVBzmMKHY6bBU4QFghVMAY&url=https%3A%2F%2Fwww.finance.gov.au%2Ffiles%2F2012%2F09%2Fa-guide-to-implementing-cloud-services.doc&usg=AFQjCNH8KbZxWsIoDwAzCkKjXbZId8aRew
3 comments on “Cloud-computing advantages and challenges from a business point of view”
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Dear Nicolas,
Thank you for sharing your opinion and findings about advantages and challenges of corporate switch to cloud-services. I really appreciate the fact that you tried to cover “the both sides of the coin” – cloud-computing is often presented purely from a positive perspective, without covering the variety of possible information sensitivity, security, and overload challenges. Ones interested in exploring this topic further – take a look at the most recent movie with Emma Watson and Tom Hanks – “The Circle” (2017). I believe it well shows the potential disadvantages of being too open to everyone and everything… Or?
Find more about the movie at: http://www.imdb.com/title/tt4287320/
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Great post contemplating what cloud-computing means from a business, rather than technical, point of view. The latter part of your post contemplates the challenges at different levels of the corporate hierarchy. I’m curious your thought on what challenges are presented due to the fact that organizations have siloed-off or outsourced IT functions. For instance, some large corporate IT departments are managed as separate entities from the business and view their “customers” as the different departments within their own company, rather than the customers of the core business.
McKinsey’s Digital Practice has written about a “perpetual evolution” model to help traditional companies compete against digital-born companies (http://ow.ly/tCPo30du7Sn), which provides a framework for a blend of business and technology focus.
My opinion is that in-addition to the challenges at the different company levels, companies must first grapple with the fact that over the last decade they spent so much time outsourcing IT functions that will be a key asset in their digital transformation and they must learn to bring those back. The IT department must refocus on the core-business objectives and regain control of key IT functions lost to outsourcing if they are to compete against the more agile, digital-born companies. Because customers are rapidly changing their preference for how to interact and transact with all facets of life, and traditional enterprises must adapt.
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Hello Nicholas!
First of all, I really liked your thought because they are providing a different perspective than the usual things we hear about cloud computing. The automation you mentioned, which can be implemented to the cloud, would create a common ground for the users and definitely this way we can get rid of most of the human errors.
Other than that, I totally agree with Natasha. It is very nice to see that you mentioned the difficulties and physical boundaries for cloud computing. Cloud computing is always shown with advantages but not with the difficulties faced on the way to get these advantages. Most of the people don’t talk about it but since infrastructure changes from country to country and these physical boundaries cannot be bypassed it is important to choose the right cloud vendor and to implement in the right scale, just as you also mentioned !
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