Realising Value From Cloud and Digital
Mike Walls
Enabling organisations to thrive | Value Realisation with Cloud & Digital Technology
The benefits of cloud and digital technology are clear, but realising the full value of technology requires a broader focus. Businesses need to adapt their processes, ways of working and operating models, and enable their people to leverage the technology effectively.?
Datacom’s Fifth Annual Cloud Report identified several areas that businesses need to adjust to derive real benefits from IT platforms and infrastructure. The top priorities were skills and training, governance of cloud use, and implementing the right cloud structures. Security and AI were key investment priorities, but the challenges of adopting and delivering these investments were highlighted.?
Organisations are starting to understand that cloud is a new mode of operation rather than just an infrastructure destination. This suggests we are now entering an era where businesses understand that a lift-and-shift migration with little adaption of operating model isn’t going to achieve optimal results. Underscoring this shift is the appearance of automation and DevOps in the ‘top five’ business challenges — for the first time since the cloud report began — along with a move from lift-and-shift to re-platforming and software as a service (SaaS) models.?
We are now seeing some acknowledgment of a mindset shift, but the key people and process areas are still seen as challenges. So, how do we ensure we get our digital and cloud strategies right? How do we govern, operate and deliver the technology alongside modern ways of working that lay the foundation for better efficiency, security, customer experience and future growth.?
Key considerations for realising cloud and digital value?
There are some common themes, and I find it helpful to break it down into six key organisational areas that need to be considered to realise the full value of technology:?? ? ?
Business alignment??
A clear strategy provides direction and rationale for change or adoption of new technology. It should include business goals and expected benefits and cover the types of cloud and digital models and underpinning technology likely to be used. You will also need to outline the necessary capabilities required and note the impact to people and processes to support adoption. This helps everyone understand the likely investment and impact.?
Securing buy-in from wider leadership, especially around setting KPIs to measure benefits to be realised, is crucial. Management resistance, employee pushback, and a lack of engagement or collaboration consistently hinder progress.?
Effective change management (understanding the impact on your processes, ways of working and people) and prioritising, championing and unblocking adoption issues are essential for success.?
Apps & data?
Every organisation relies on technology with apps and data being core assets. Before embarking on any cloud or digital journey, understanding the current and future state of your apps and data is crucial. Mapping these to your strategic goals helps determine the correct business use cases and plans to move forward, as well as update the strategy with more detail around cloud deployment models (infrastructure as a service, platform as a service, SaaS) and digital solution use cases and needs. When it comes to technology like AI, data is even more essential, so having plans for data and information quality and governance is super important.??
Security?
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Given apps and data are core assets, you must understand your security, governance, compliance, data protection and business continuity needs. To maximise the benefits of cloud and digital, it's crucial to adopt modern shared responsibility models, shift security and compliance earlier in the process, and transition to DevSecOps practices. This gets security and governance, risk and compliance (GRC) involved early so they’re not a blocker downstream, and informs wider business and security strategies and plans as security and GRC will need to change their own ways of working to account for cloud and digital needs.?
Platforms?
When it comes to technology adoption most people start here at platforms, but I’d recommend first understanding your business goals, apps and data state and plans, and security and GRC needs. Cloud and digital architecture and platform selection can then be looked at. With cloud, you must implement self-service capabilities, automation, patterns and governance guardrails to ensure that key benefits, like agility, resiliency, operational efficiency and faster deployments can really be realised.?
Delivery
Running new platforms, adopting new tech and changing the way apps and data are implemented requires significant change to how your business operates. Delivery governance becomes key, covering:??
Service management and experience must also evolve with automated pipelines, self-healing capabilities and new digital channels and interactions positively impacting traditional service delivery processes when done effectively. Team structures also need to change with cloud and digital merging infrastructure and software, shared responsibility models in play, and cross tech and business collaboration key to better agility and experience. Tech teams need to consider new operating models like DevSecOps, CloudOps, FinOps and MLOps to make the most new technology investment. Unfortunately I often find organisations attempt to implement or overlay traditional process and ways of working across cloud and digital which ends up negating benefits realisation.
People?
That brings us to people. Everything you adjust in your business impacts your people. You must understand how new technologies and digital solutions impact structure, roles and responsibilities, processes and workflows. Identify the required skills and provide necessary training and enablement. While it may be the last point in this list, you need to consider your people from the start and throughout the entirety of your strategy and plans. Change management and communication across the business, enabled by senior leadership championing success, is essential from start to finish.?
Cloud and digital technologies provide a lot of value and benefits, but there are many factors to consider. Success goes beyond technology; business alignment, leadership and change management are key to enabling the required operating model and people enablement. By adopting strategic approaches to cloud implementation and digital adoption, organisations can navigate economic uncertainties, manage costs and deliver innovative services for increased productivity and growth. As we continue to embrace these technologies, it's crucial not to forget that they are there to enable business outcomes, and leadership, collaborative partnership and wider enablement are required for these strategic initiatives to fully realise their potential.?
Great article Mike, your six key organisational area’s break it down nicely and as you say consider the people and business change is so important!!