Industry Clouds Key To Build A Digital Core & Take It Over Autonomy
The Cloud is driving significant transformation in every industrial sector and domain and transformation will come from business agility, paving the way for new products, platforms, and markets.
Organizations are using the Cloud to drive secure data-driven innovation in advance of business objectives, which is key to how we use Cloud and next-gen technologies such as gen AI, 5G quantum and others to add business value.
More and more enterprises are combining their deep industry and domain expertise with strong engineering to bring in business solutions and business models as a service that are industry specific and hence industry Clouds, given the distribution mechanism, typically being Cloud.
The business agility and new product developments feed the increased efficiency that organizations are seeing. This is being followed up by the ability to really focus scarce resources internally on the areas that most differentiate business and really adopt industry Cloud solutions to create that differentiation.
It’s not just the Cloud, but really the full intersection that provides the flexibility for organizations to be able to build on a digital core, take that core and evolve it over autonomy. This includes different business capabilities that are automated, and delivered by a number of different players, including the Cloud vendors.
The Cloud market, back in 2021, was about a $trillion. About 64% of that market was looking at being unlocked by industry Cloud and was supposed to allow a lot of organizations to accelerate what they’re doing in market — the way that they’re engaging with customers, the way that they were engaging with suppliers. And ultimately, the way that they were evolving themselves to differentiate strategic.
Deloitte’s “2022 US Future Of Cloud” survey collected data from 500 senior Cloud decision makers in the US across five industries — from Consumer Energy Resources, and Industrial Financial Services, Life Sciences and Healthcare, as well as Technology Media and Telecommunications companies.
The survey tried to understand how Cloud maturity differs across these organizations based on their business strategy, their innovation goals, and to what extent they’re getting value from their Cloud investment.
The survey found that 95% of respondents either agreed or completely agreed that industry Clouds would be a critical enabler or catalyst for their business transformation related to automation business and digital transformation from a sector perspective.
And the reason is that there are many potential benefits — mainly, agility and legacy solution migration. That’s not to say that there weren’t concerns. The leading concerns were issues like, control over data and insights, vendor lock in and data per day protection.
However, there was an overwhelmingly positive sentiment about industry Clouds’ ability to speed up innovation and business transformation.
Industries like Energy Resources, Industrial TMT and Life Sciences and Healthcare cited accelerating the capacity for change and agility as the top benefit.
95% of the respondents in the Financial Services and beyond agreed that Cloud and the force multipliers impacting business transformation efforts. A third of the survey respondents aren’t seeing business productivity gains that they had hoped which, still points to Cloud being too anchored potentially on being a technology conversation.
However, financial services organizations benefited from all round velocity — the ability to focus on true industry differentiation. More like getting a digital advisor in a box or an underwriting capability as a service and being able to just focus on what differentiates you in the marketplace.
In the Life Sciences and Healthcare Industry, the challenge is to drive legacy transformation amid data concerns. The industry wants a strong focus on relationships with suppliers and customers, along with faster innovation and time to market for business capability.
For this, Life Sciences and Healthcare Industry will focus on Digital Product App Development Software Platform, Engineering and Software, to build greater discipline in these areas. Also, consider a dual focus on suppliers and customers, which indicates a strong and mature, digital ecosystem strategy and really sets that opportunity for co-creation R&D innovation.
There’s been a huge amount of focus in this area, both in terms of the use of industry Cloud solutions, but then also in the creation and distribution of them as well.
The emphasis here is really on value and the sentiment is that organizations are optimistic about both the ways to help drive competitive strategy in helping to enable that differentiation at pace and the evolution of it. But a real focus and concern on cost, not just around industry, but Cloud solutions.
The space of industry Clouds is evolving at a pace that’s only increasing. And the distribution of it is only becoming more complex with various different marketplaces. Even non-traditional players, like health care providers, are turning into Cloud solution providers themselves as they develop models for things like accelerating clinical trials or making use of medical data, taking advantage of industry Clouds for a full view of their business. Looking at the places that are going to drive the most differentiation on the strategy side and that’s really a combination of how business and technology are coming together to make some of those choices. And then go through the cost benefit analysis, and ultimately, business case.
So where to start now, where to move to over time and where they ultimately want to run out — this is an area and an era to watch out for!
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