Disrupt, Collapse, Transform.. The Role of Cloud Computing in industry transformation
We are living in an age of unprecedented change across all industry sectors, the most obvious being manufacturing, retail and media and publishing. But when you think about it, no industry has really escaped what has been a seismic shift in the surrounding business landscape. This is largely thanks to the Cloud.
When Cloud was all about lower costs
When Cloud Computing first came on the scene, a small minority of businesses jumped at the opportunity to change and to benefit from lower costs, both capital and operating costs for the business. Now as more and more companies adopt cloud technologies, they are recognising a whole host of equally important benefits such as flexibility, scalability, adaptability and agility of the cloud.
In your own business, even over the past three years you will most probably have noticed some or all of these types of changes in your industry:
- a new breed of "disruptive" competitors springing up "over night"
- technology and internet driving how "things are done" in your industry
- new business models (such as designing products over the internet and linking directly to manufacturing systems - potentially cutting out the "middle-man" such as retailers or distributors
- productisation (where service organisations package their services in a similar way to how products are marketed) and servitisation (where product manufacturers add or integrate chargeable services into their core products)
- using cloud to gain the competitive advantage by being quicker and more agile
Grabbing the opportunities
We all have this incredible opportunity to adapt and thrive but standing still and watching the changes taking place all around us is certainly not a wise strategy.
Old reliable businesses of the past such as Kodak, once accounted for 85% of film sales and 90% of camera sales in the USA, filed for bankrupcy in 2013. Although Kodak are trying to make their comeback, their demise was really a bad case of "burying their heads in the sand". Steve Sasson, the Kodak engineer who invented the first digital camera in 1975 characterized the initial corporate response to his invention this way....
But it was filmless photography, so management's reaction was "that's cute, but don't tell anyone about it". (Via the New York Times, 05.02.2008). This attitude continued for years to come with Kodak refusing to recognise digital photography as a disruptive technology.
This Frost & Sullivan Research (sponsored by NetSuite) identifies how cloud computing has emerged not just as a cause for change but as a necessary response providing the flexibility and adaptability that is key to long-term business survival.
Download the research to learn:
- Business Survival Rates for the next 5 years by industry (UK research)
- Key Drivers for industry transformation
- How businesses should respond to new disruptive competitors
- The importance of digitalisation across the enterprise
- Why companies need to embrace new business models
"The average lifespan of a company has reduced from 61 years in 1958 to 18 years today and is forecast to decline to 10 years by 2018. For smaller companies, more than half of today's businesses will not be around in five years". Frost & Sullivan
Click on the image below to download this very interesting research.