The Benefits of Adopting a Different Strategy on the Technological Front - Research Paper Example

Module Executive Summary The essence of any business is to provide the most efficient services to its through their mostappropriate technology and business policies. Technology is of great importance when dealing with clients, as well as production means. Each of these important aspects requires that a company understands its preferences and to what lengths the business is willing to go to meet its goals. The company is required to manage its computer resources and its storage of important business data. As such, going the cloud way is essential in this day and age probably because of the many benefits that accrue from its adoption into a business policy and the many clients who will benefit from the company’s ingenuity. As such, the potential of saving business costs and increasing its efficiency while at the same time offering reliable services to the clients cannot be overlooked. The benefits of adopting cloud computing are numerous though there are also some risks that may be incurred. But given the increasing benefits of this technology that a company can utilize, adopting it will be essential. The company will benefit from faster deployment of new business capabilities, lower-risk business innovation, global scale outreach, more intelligent IT spending and easier automation of IT services and information from the relevant sites. Some of the risks to be incurred include outsourcing to an external provider which gives the flexibility but does not eliminate the risks incurred; storage of data outside the company may be of great concern and the probability of vendor lock-in due to the different services provided by each vendor. With such details, the company can make better decisions on how to develop the technical ability of the company. Introduction The main aim of this report is to explore the benefits of adopting a different strategy on the technological front. Technology is very essential in the current business world with each company seeking to address its issues from a technological point of view. Each company looks for ways of saving more while using the least cost to maximally achieve the greatest results on the same. Technology has made business faster with the internet revolutionizing the way business is being done. Interactions within and without have become easier, faster and more secure with each party expressly meeting their demands with such minimal supervision but with constant communication being core. Thus, speed, cupped with technology adds flexibility and responsiveness to interactions. It also allows for far-reaching collaboration with different applications connecting larger business networks. This allows for the blending of talents and abilities which makes innovation quite an important aspect of the company. Adopting cloud will be important in realizing these goals and the report herein will look at all these important attributes that make up this important technological drive. Therefore, the benefits herein will ensure that the reasons behind such a proposal will be adequately addressed with each point being explored further to ensure all risks and benefits are addressed before a conclusive decision can be made regarding the same. Each decision has to be viewed in relation to the business core policies, goals and objectives with the best decision made in favor these rather than individual interests. What is cloud computing? Globalization has made it important for every company to seek ways of reducing the costs while increasing its flexibility, versatility and innovation to capture more clients. Cloud computing describes the storage of data through internet connections. This creates virtual data storage capacities which are virtually unexplored in many cases due to the huge capacity that they possess. This reduces the manual storage capabilities, making it easier to automate services and archive them with ease. This may be done via a private cloud where services and infrastructure are maintained and managed by a third party or the company; there is the community cloud which is a conglomeration of several organizations which share access to a private cloud; or the public cloud which is managed by an external corporation such as Google and stored off-site. The hybrid model provides the advantages of both the private and the public clouds and allows the company to gain from all sectors. Thus, whichever model a company picks will depend on its push for greater profits at the end of the day and the needs the company is experiencing. Benefits. The benefits are immense. First and foremost is the idea of reduced IT costs. The development of IT in the world has changed the pace and face of businesses in the world. This company has also not been left behind in this. The continued application of IT in almost all the departments proves this. These benefits have led to the concentration of most of the company’s resources and revenue into ensuring that the company has adequate IT personnel, equipment and up-to-date system software (Pride, Hughes and Kapoor 28). With the increase in web-enabled devices, the issue of data access has been made easier. This can be applied in the company too. The need to reduce costs in every possible manner is every company’s drive. The costs of IT need to be maintained as low yet efficient as possible to ensure the business does not come to a standstill. With cloud computing, the costs of system upgrades, new hardware and software and expertise consultations will be drastically reduced since these will be included in the contract with the service provider chosen (Atkinson 39). The company will no longer be in need of the expert staff hence reduction in wages spent on such. Further, in view of the IT budgets, there are two important categories that inform the company on how to spend in relation to the IT department. First, there is spending that is tied to the basic IT infrastructure and applications like emails, and the spending on new applications that provide new business capabilities. Every business wants to cut the first spending trends and increase on the second (Schwalbe 6). This company can attest to this theorem. Cloud will help with this in a few ways. Since the company will only be charged for the resources used, the use of IT becomes an operating expense rather than a capital expense which helps in wise spending. Cloud computing also helps to ascertain the spending that directly goes to IT (Hugos and Hulitzky 19). This helps largely in decision-making and budget preparations. Scalability is another advantage that is well achieved in this case. The global reach and scale means that a company ought to maintain its services on a flexible yet competitive trend. The company has a higher possibility of gaining more value for their data and innovations by reaching out to more clients in the world due to the scalability offered by cloud services (Blanchard 196). Even without engaging in upgrades to ensure the system is running, the company embarks on other issues while the service provider handles the system upgrades. This frees up time for other activities which assist in the growth of the company. This leads to another advantage which is business continuity (Mahmood and Hill 62). With data protected and secure in the cloud environment, the business premise is assured of continuity since their data is not physically destroyed. The business will still operate even after natural disasters since their information is safely stored elsewhere. This also helps in easier access, minimized downtime and less loss of productivity. Cloud is a low-risk business innovation venture. Innovation, being the key lifeblood of the company, is indispensable for all involved stakeholders (Chou 105). Providing an avenue for clients to be happy with the products and services provided is essential. If any innovation attempt fails, the risks could be higher than anticipated. The use of less expensive innovation-and hence less risks- is appropriate for any business venture (Fingar 102). Cloud comes to the rescue of such companies. By providing custom applications that suit the business and expertise advice all rolled into one, the cloud platform providers provide the company with a great starting point and a great pool to choose from. It offers a chance for the company to venture into a low-risk and low-commitment way that has greater returns for the company as a whole (Hurwitz 290). Charges are based on what one uses and the pricing procedures provide an avenue where there is little commitment other than each side meeting its end of the bargain. Risks. Risks cannot be avoided with any new venture a company takes. The fact that the services will be outsourced could prove quite a concern to the company as a whole. Privacy is at most threatened in case the provider seeks to delve into a company’s inventory and seek to blackmail the company. The provider may also not live up to the expected standards and this could hurt the business operations. The applications could also be faulty or down all the time, hence eating into the company’s expenses and possible cuts in revenue (Chappell 5). Thus, the company must engage in looking for the appropriate vendor whose long-term goals do not include leaving the cloud platform as this could affect the business severely. Thus, the service level agreement must be equally exploited and understood to make sure that the company understands what it is up against and how it can meet its goals. Another risk associated with the outsourcing of services is the storage of data outside the organization. Regulations may hinder how certain data is stored and where it is stored. The details required before such a move is made are numerous and cannot be overlooked during the initiation period and throughout the contract. How secure the data is another concern (Pride, Hughes and Kapoor 29). This must be well explored and the company cannot overlook this aspect. If the company is reliable, such concerns should be addressed with the compensation package being brought up as a matter for discussion. Vendor lock-in is an important risk that should be considered (Chappell 6). If the vendor decides to quite the cloud platform, what will happen next? The company has to look for options that attract them for long-term benefits. For instance, the applications used by the vendor should be universal. If not found anywhere else, the lock-in is total and this means that the company will be virtually held up to the same provider through the good and the bad. Though it is entirely impossible to avoid lock-in, minimizing it is a worthy effort to consider before committing oneself. Analysis. Though the benefits outweigh the risks in number, the weight that the risks carry is overwhelming. The best way to tackle this is by having extensive considerations with different vendors being considered. Attention to details and the probable effects of each attribute require the company to get the best there is in the market and have a candid discussion on some of the issues raised in this report. The risks could have potentially destructive effects on the way the company carries out its duties which leaves the company with more losses and lesser profits (Hugos and Hulitzky 22). However, the amount of revenue to be accrued from the ease in conducting business as well as the flexibility of the services offered cannot be let to pass by. The company needs to utilize the cloud technology to ensure that each department explores its capabilities and potentiality in bringing more value to the company through its services. Innovation is most adept using such outsourced services and this means that each individual will work to make sure that the services they provide attract the market and retain the clients as much (Chou 107). The recommendations here include the possible adoption of cloud computing in the mainstream business. However, this is to be approached with a more cautious plan. The departments herein will go the cloud way in succession with each department expected to fit in and stabilize their operations before the other engages in the shift. This will ensure that each department has its own stability within the cloud platform and that eventually, the whole company will have developed a point of view that would establish the targeted goals without relinquishing its business profits (Schwalbe 8). Virtually, this will help align all business strategies to the technology available. Conclusion: Cloud computing has its benefits and risks. The benefits are many but the risks need to be addressed in detail. Wise spending on IT decisions, collaboration efficiency on a global scale, flexibility of work practices, scalability and faster innovative capabilities are just some of the benefits to be accrued. More will come up as a result of indirect usage of the platform such as reduced wages for IT experts needed in the company, lesser infrastructures, less money spent on system upgrades and also power used in the company. Risks such as business information being stored away from the company’s comfort, outsourcing of services and vendor lock-in need to be looked into. Thus, adopting the cloud platform will ease business activities and increase innovative ideas that could be of greater importance to the company. This flexibility is essential if the company is to attract as many clients and cash in on the globalization prospects presented through such services as cloud computing. Works Cited Atkinson, Steven G. Technology Tips for Small Business. New York, NY: Steven Atkinson, 2007. Print. Blanchard, Ralph. Creating Wealth with a Small Business: Strategies, Tactics and Models for Entrepreneurs. London: Ralph Blanchard, 2009. Print. Chou, Timothy. Cloud: Seven Clear Business Models. Ithaca, NY: Cloudbook, 2008. Print. David Chappell. The benefits and risks of cloud computing. David Chappell and associate. January, 2011. Web. 28 May, 2012. Fingar, Peter. Dot.Cloud: The 21st Century Business Platform Built on Cloud Computing. New York, NY: Meghan-Kiffer Press, 2009. Print. Hugos, Michael H., and Hulitzky, Derek. Business in the Cloud: What Every Business Needs to Know About Cloud Computing. New York, NY: John Wiley & Sons, 2010. Print. Hurwitz, Judith. Smart Or Lucky: How Technology Leaders Turn Chance Into Success. New York, NY: John Wiley & Sons, 2011. Print. Mahmood, Zaigham, and Richard Hill. Cloud Computing for Enterprise Architectures. Boston, MA: Springer, 2011. Print. Pride, William M., Robert J. Hughes, and Jack R. Kapoor. Business. San Francisco, CA: Cengage Learning, 2011. Print. Schwalbe, Kathy. Information Technology Project Management. San Francisco, CA: Cengage Learning, 2010. Print. Read More