As businesses prepare for the future, terms like digital transformation and cloud-first strategies have become common place in boardrooms. However, while businesses have been hearing these terms for more than a decade, and organizations have been mapping long roadmaps for their adoption, the pandemic and the changes it has brought about have made their importance even more clear and urgent.
The pandemic has ushered in a slew of changes in the way businesses operate. Digital adoption has increased faster than ever as businesses shift to adopt newer and more resilient methods of operation.
This shift has not only aided organizations in coping with the pandemic’s effects, but it has also provided them with a digital foundation they never had before. When businesses combine this with their increased confidence in change as a result of the lessons learned in the pandemic, the speed of change will only accelerate with time.
The following considerations will be critical as companies embark on this digital journey:
Rethinking cloud strategy and putting data first
The advantages of cloud computing over traditional data centers in terms of performance, elasticity, and significant cost savings drove its adoption. However, with the outbreak of the pandemic and a greater emphasis on guaranteeing resilience, the rationale behind cloud adoption has shifted from cost minimization to technology simplification and modernization. This, in turn, necessitates the creation of a better backplane – in the form of cloud and its auxiliary services on which to update the application stack, rapidly build new capability, and harness the ecosystem’s collaborative innovation.
This trend indicates that cloud adoption will become more dynamic. A cloud-based approach focuses on the problematic business process first, then helps to redesign the value chain and operating model around it to meet the needs of a post-pandemic future. The company roadmap is then transformed into a cloud journey, creating the groundwork for a flexible and agile setup.
Data has become a far more important component of the equation for businesses as a result of cloud adoption. While a better understanding of data’s inherent worth is important, the cloud has also opened up a slew of new capabilities that data can give.
Digital is simple, but the transformation is difficult
The demand for resilience and agility has increased as a result of the pandemic, and there is a greater emphasis on pushing innovation to build additional capabilities. This demand is being met by the technological progress of elastic compute on demand and the availability of sophisticated hyper-automation software as a service. This is a difficult undertaking because it necessitates layers of experimentation and testing while still running the company’s IT infrastructure. As a result, many people assume that the technical execution part is the most important for CIOs.
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The reality, on the other hand, is completely different. CIOs no longer consider digital to be the most important aspect of their digital transformation strategy. CIOs are kept awake at night by the transformation aspect, which includes business ideation, insights monetization, and process innovation. What makes transformation more difficult is that it requires orchestrating change across four dimensions — technology, people, data, and processes – all at the same time.