Adoption of Cloud Computing by Businesses - Coursework Example

Adoption of Cloud Computing By Businessess Student’s Name Course Date There are a great number of ways for which information systems are playing a part in transforming business operations. As a result of information systems, there have been emerging mobile digital platforms; a tremendous growth in businesses and especially SMEs using big data programs as well as substantial growth in cloud computing as a whole (Lin & Chen, 2012). In fact, it can be successfully argued that the adoption of information systems like cloud computing has resulted to overall globalisation opportunities. Certainly, the internet is a platform that has facilitated SMEs to enjoy drastic overall reduced costs of operating on global scale as well as improvements in foreign trade and outsourcing opportunities. For all modern-based businesses, the degree of significant business relationships are simply digitally enabled and mediated. In essence, fundamental business processes are attained through digital networks while notable corporate assets are managed on a digital manner. It is successfully argued that digital firms provide a greater level of flexibility in business operations and management function as a whole. The improvements can be noted in relation to the aspects of time and space-based shifting models (Low, et al, 2011). Now more than ever, modern businesses that focus on cloud computing model experiences a growing interdependence that relate the capacity to adopt information technology as well as implement corporate strategies and accomplish overall corporate goals. There is a great number of reasons for which businesses invest heavily in aspects related to information systems like cloud computing. First, they seek to explore the benefits that relate to overall operational excellence (Low, et al, 2011). In essence, these companies set to improve aspects related to efficiency for purposes of attaining a higher level of profitability; and, also achieving substantial efficiency as well as productivity levels. Secondly, the information system platform fosters customer and supplier intimacy levels. It is crucial that a business devise effective ways of serving clients better since it results to a higher level of return customers hence a business enjoying high revenues and profits at the end. The ability to develop and sustain fair relationships with suppliers allows them to provide important inputs whose end outcome is lowered costs (Sultan, 2011). Consequently, cloud-computing results to an overall improvement in decision making process. As a result of accurate information generated by information systems, business managers are now able to effectively allocate the underlying level of resources as well as minimise possible poor outcomes, which could increase the degree of costs and subsequent loss of customers. Businesses that have ensured to adopt efficient and modern cloud computing technologies are more likely to enjoy a competitive advantage (Sultan, 2011). Digitised operations results to a far-much better way of delivering better performances; immediate responding to customers and suppliers in a far-much real time manner as well as the ability to charge less for superior commodities offered to customers. The capacity to implement and sustain cloud computing, results to survival of modern business. Unlike in the past, nowadays information technologies are a necessary component of a successful business. It further prevents a business from experiencing unnecessary penalties that could emanate from numerous governmental regulations that require up-to-date record keeping. Information technological advancements like cloud computing play a great role in enhancing a business operation by way of improving the overall efficiency of underlying processes (Sultan, 2011). This is especially met whenever the once manual processes are automated. It further enables formulation of new processes that in turn results to alterations on the manner for which information flows; aids in possible elimination of delays that relate to decision making process as well as it provides assistance to newly built business models. As an efficient component of cloud computing, information systems results to notable coordination and social businesses. It focuses on a collaborative culture that promotes businesses processes especially since it does not condone placement of value on teamwork or lower-level integration in matters related to decision making (Weinhardt, 2009). It certainly facilitates collaborative business cultures whereby the underlying management team is heavily dependent on teams of employees in achieving specific organisational outcomes. In consequence, businesses adopt these technologies in order to trigger social matters in operations like in the case of using different social networking platforms like Facebook to conduct internal and external forms of communication and promotional; strategies. Cloud computing to have an impact on how organisations conduct their day-to-day business operations. For instance, it has economic impacts on operations given that it information technology as a whole is a factor of production (Weinhardt, 2009). In economical perspective, it results to the reduction of transaction costs as well as underlying reduction in agency costs. To add to this, businesses have been shown to experience lots of benefits that relate their using of information systems in coming up with efficient competitive strategies (Weinhardt, 2009). Adoption of IT platforms has shown to actualise four distinctive generic strategies that results to competitive forces, these include; product differentiation as well as a focus on market niche and strengthening both customer and supplier relationship levels. Gupta, Seetharaman and Raj (2013) agree that cloud-computing plays a significant role in propelling business operations. They note that its adoption lowers the degree of cost of entry for smaller businesses that are focused on benefitting from compute-intensive business analytics that were up to now being enjoyed by only large firms (Gupta, Seetharaman & Raj, 2013). It is arguably clear that the computational exercises would certainly integrate an enormous amount of computing power for shorter periods thereby curtailing SMEs in most instances. However, cloud computing has ensured that there is dynamic provisioning of resources for all types and sizes of businesses. Going forward, the authors note that the exercise could result to immediate access to hardware resources without the need for advance of capital investments for businesses (Weinhardt, 2009). As a result of this, most businesses enjoy a much speedy time to market in many industries across the globe. In fact, positioning IT as a fundamental operational expense assists greatly in bringing about a reduction in possible advance costs needed in corporate computing (Gupta, Seetharaman & Raj, 2013). A perfect example can be seen with such popular start-ups like 37 Signals and Jungle Disk that were made operational through investments in IT that were orders of magnitude. Important to note, cloud computing is said to be able to dramatically lower the level of IT barriers that relate to the aspect of innovation. This can be seen in many of the underlying start-ups that extend to online applications like Facebook and YouTube to more advanced ones like Triplt that is focused on managing one’s travel journey. Through cloud computing, business can now successfully enjoy scaling of their services that are deemed to be increasingly dependent on accurate information and in accordance with customer’s immediate needs and preferences. Considering that cloud computing resources are sustainably managed through software applications, they can be easily incorporated whenever the needs arises. This is a plus for businesses since it lowers costs to manageable levels. It is further argued that cloud computing further ensures to actualise new forms of applications and provides services that could not be done before. A good example can be noted with current mobile interactive applications that are location-environment-context-aware and could certainly respond in real time to all forms of information availed by end-users. Despite these levels of achievements, it is however, noted that the underlying development of cloud computing faces a great length of possible threats that range from entrenched incumbents like IT providers whose business model is still dependent on the conventional model to corporate IT divisions that likely resists change as result of inertia or from the possibilities of related job loss within the new government (Dillon, Wu & Chang, 2010). To sum up, the new environment created as a result of cloud computing has resulted to the formulation and ascertaining responsibilities to most regulatory agencies within the local and national levels. In essence, most businesses are now more than ever becoming interested in cloud computing as a whole. Most governments are now working with different industry players in today’s world for purposes of formulating effective standards and sensible level of regulation that cannot overlook aspects of innovation while at the same ensure that there is privacy of information and security of informational data. There lies a significant level of opportunity for small and medium sized businesses to adopt cloud computing. SMEs can comfortably engage in the immediate exploitation of high-end applications like ERP software or even business analytics that were until now not easily available to them. Through cloud computing, businesses are recommended to mash-up where web presence of SMEs can be linked together from two or more external sources for purposes of coming up with new form of service in rather unexpected ways. References Dillon, T., Wu, C., & Chang, E. (2010). Cloud computing: issues and challenges. In Advanced Information Networking and Applications (AINA), 2010 24th IEEE International Conference on (pp. 27-33). Ieee. Gupta, P., Seetharaman, A., & Raj, J. R. (2013). The usage and adoption of cloud computing by small and medium businesses. International Journal of Information Management, 33(5), 861-874. Lin, A., & Chen, N. C. (2012). Cloud computing as an innovation: Percepetion, attitude, and adoption. International Journal of Information Management, 32(6), 533-540. Low, C., Chen, Y., & Wu, M. (2011). Understanding the determinants of cloud computing adoption. Industrial management & data systems, 111(7), 1006-1023. Sultan, N. A. (2011). Reaching for the “cloud”: How SMEs can manage. International journal of information management, 31(3), 272-278. Weinhardt, C., Anandasivam, A., Blau, B., Borissov, N., Meinl, T., Michalk, W., & Stößer, J. (2009). Cloud computing–a classification, business models, and research directions. Business & Information Systems Engineering, 1(5), 391-399. 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