While many businesses have embraced the cloud, a majority are yet to realize its true potential. According to PwC’s Cloud Business Survey, 78% of executives reported that their companies had adopted cloud solutions in most or all aspects of business operations; however, only 10% could boast of realizing desired outcomes such as cost-cutting and revenue growth. Those that succeeded, attest that achieving value with the help of cloud technology has become easier for them than before and overcoming barriers at a rate twice that of other companies. They are also expecting revenue growth of 15% or more even amidst this current climate of uncertainty.
PwC has identified four key areas that demonstrate how cloud-powered businesses are operating differently than those which have yet to fully take advantage of its capabilities.
1. A holistic approach to cloud
Cloud-powered companies don’t just migrate workloads or modernize assets. They use a combination of methods to figure out what will work best for their goals. Once they decide, they’re committed to it and are nearly four times more likely than other companies to continue their current strategic focus. Even though many companies have moved their operations to the cloud, they still consider whether it makes sense to do so in every case. They might decide to keep data or legacy applications in-house instead or move toward a managed services model. This all depends on factors like risk, customers, talent, and other impacts. They are also more likely to leverage managed services.
Cloud-powered companies are gearing up to explore the vast opportunities of industry cloud solutions. These pre-built packages, designed with consideration for sector-specific business processes and customer preferences, offer a flexible starting point loaded with state-of-the-art features like AI technology.
2. C-Suite collaboration
CIOs and technical teams within cloud-powered companies prioritize collaboration with other departments, such as CHRO and talent teams. This is due to the integral role these groups play in ensuring the successful implementation of cloud projects by obtaining the necessary skills. As a result, CIOs of cloud-powered organizations have established stronger ties across all facets of their business compared to non-cloud counterparts, utilizing collective resources for greater transformation success.
CIOs and finance leaders can collaborate to ensure the scalability of cloud transformation projects, resulting in a more cohesive financial model with minimized unplanned expenses. Working together allows for strategic preparation that will ultimately benefit the organization’s success.
Collaborating with ESG leaders will help not only to measure the cloud’s carbon emissions but also provide information on how cloud solutions can help drive data collection and reporting to support net-zero goals.
3. Data analytics and AI strategy
Cloud-powered companies understand that data is integral in the process of transformation and must address common siloed issues to unlock its potential. These companies are more likely to devise an enterprise-wide strategy for data (88%) as opposed to those not doing so (59%).
To become data-driven, these organizations can create streamlined architectures for their information and institute governance structures that ensure proper implementation. Additionally, they must cultivate the necessary skillset among employees as well as operational changes tailored towards achieving a unified view of their data.
With their data in order, cloud-powered companies can start leveraging machine learning and AI to reduce costs and speed up processes. Cloud-based AI services can help organize data, improve processes, make automated decisions in real-time, and model different strategies. To do this, companies will need employees who are skilled in business and data science.
4. Embedding trust in the cloud
Cloud-powered companies are always thinking about the risks that come with using cloud technology. They are more likely to have dedicated resources devoted to making sure that using cloud services is safe and compliant with regulations. They also focus on cybersecurity, data privacy, and compliance. It is helpful to communicate with the C-suite about risks related to technology, data, and transactions.
When designing cloud projects, it’s important to think about how to build trust in them. This includes considering areas like the metaverse and Web3, which are emerging areas of innovation. Leading companies are looking at how existing risk frameworks can be extended to these new areas and are engaging with others in their industry to define their responsible use.