Five mantras to unlock maximum benefits from your cloud deployment

Cloud is at the center of every organisation’s digital transformation journey, even more so in the pandemic-disrupted business environment, also widely known as the ‘new normal’. While most organisations have adopted cloud in some form before the pandemic, the trend has been accelerated on a much larger scale in recent times. However, the business outcomes from cloud deployments often vary for different organisations. At the same time, some organisations may not even get the desired benefits — or even negative outcomes — from the cloud. This leads us to one of the most burning questions for IT and business leaders — How can one technology yield different results or no results for different organisations?

To find an answer to this, organisations need to deliberate on the following two questions:

  • What are the business outcomes to be achieved?
  • What’s the best way to approach cloud deployments?

Only when these fundamental questions are addressed, and the myths around cloud are busted, it can be realised that cloud as a technology is not an issue. Instead, it’s the way organisations approach and deploy the technology that defines the business outcomes. Thanks to all the hype around cloud, organisations often have much higher expectations from cloud. However, like every other technology, cloud is meant to address business-specific challenges; it is not a single solution for all enterprise IT needs. This realisation holds even greater emphasis as businesses today operate in a highly dynamic environment.

Let’s discuss what organisations need to ensure to get the best out of their cloud deployments.

Clearly define business objectives:

Before even considering cloud, the first step starts by defining the business objectives to be achieved. Once the outcomes are clear, the next step involves exploring cloud use cases and determining if they can help achieve the desired outcomes. Well-defined objectives coupled with the right use case will help you measure success and lay a clear roadmap.

Identify what needs to go on the cloud:

Identifying the right workloads to run on the cloud is crucial for achieving the best performance. While some applications might be ready to migrate to the cloud, some applications could need modernisation, whereas some applications could also require replacement. However, not all applications need cloud migration. Assess your application portfolio and identify mission-critical, business-critical, customer-facing, and non-critical applications. Key considerations include response time, latency, downtime for each workload.

Unlike born-in-the-cloud companies, traditional organisations have legacy infrastructure, wherein a lot of investment has been made over the years. This infrastructure could still be utilised for many business applications. In a nutshell, getting the best out of your legacy infrastructure and combining the use of cloud is the key to successful digital transformation.

Systematic deployment of cloud is critical:

Once the applications have been identified, the next crucial step is approaching cloud deployment the right way, in a structured manner. Prioritisation of applications to be moved first is the next important step. This is followed by understanding architectural requirements. Data centers have been the core of enterprise IT infrastructure and continue to remain so, and most organisations have an existing data center-centric network architecture. In such scenarios, a lift-and-shift approach leads to inefficiencies on various fronts and increased costs. Re-architecting network and security is imperative for a well-planned transition, especially in an era of distributed workforce wherein data and applications are accessed from remote locations through endpoints and networks that IT teams have little or no control over.

Securing your cloud environment:

Security is generally cited as an area of concern in boardrooms discussions on cloud adoption. Whether an organisation is part of a highly regulated industry or not, no business can afford a cyberattack in today’s digital economy and security evaluation becomes paramount in any cloud project. In the cloud era, security is a joint responsibility of customers and cloud services providers. While evaluating cloud services providers, some of the key considerations include identity and access management, automated threat detection tools, backup and disaster recovery.

Deployment is not enough; cloud management is crucial:

Your organisation has successfully deployed cloud, but what next? It is essential to keep the cloud environment running seamlessly at all times. In traditional organisations where IT teams used to manage everything on-premise, lack of cloud-native skillsets can lead to manageability and operational complexities, thereby impacting performance. Furthermore, in a business environment that’s defined by customer experience and innovation, monitoring and managing cloud infrastructure can affect your IT team’s focus on applications and innovation. Having the right cloud service provider with complete skillsets and management capabilities can ensure seamless operations and relieve your IT teams from cumbersome tasks, especially in a multi-cloud hybrid environment.

According to IDC, more than 60 percent of Indian organisations plan to leverage the cloud for digital innovation in the pandemic-disrupted era. As a result, India’s public cloud services market is expected to be worth USD 7.1 billion by 2024. But while organisations turn to promising technologies to enhance business outcomes, the key is to carefully identify business needs, constraints, and objectives. With this, coupled with elaborate planning and a tailored approach, businesses can get their cloud deployment right and achieve optimum results.

Source: https://www.cnbctv18.com/technology/five-mantras-to-unlock-maximum-benefits-from-your-cloud-deployment-11108572.htm

Future-proofing the manufacturing sector with ERP in the age of Industry 4.0

The term Industry 4.0 has been quite a buzzword over the last couple of years. Used to describe the fourth industrial revolution, Industry 4.0 is the ultimate expression of the convergence between the physical and the digital worlds. Enabled by the internet and technology, it has the potential to transform the manufacturing sector. It leverages the power of data and analytics as well as automation facilitated by the democratisation of smart devices that can communicate with one another.

In many ways, Industry 4.0 is a natural progression from the third industrial revolution that was powered by electronics and information technology. As computing evolved through the 1980s and became accessible in the 1990s, organisations started realising the value of connecting disparate systems and functions. This integration led to the emergence of Enterprise Resource Planning (ERP) as a business-critical and strategic pillar for businesses.

Cut to 2021. The first two decades of the 21st Century have witnessed the meteoric rise of the internet and hardware advancement at a breakneck speed. This brings us to Industry 4.0, and the technology landscape of today looks nothing like what it did during the third industrial revolution. And while the fundamentals and strategic relevance of ERP remain unchanged, the technological innovation and changing business landscape have opened up new applications and avenues. However, for enterprises to tap new opportunities in the era of Industry 4.0, they also need to revisit their approach to ERP. What does this involve and what are the implications for traditional sectors like manufacturing?

  • Improve demand forecasting
    Economic uncertainty, fluctuating sales, and changing consumer preferences add multiple layers of complexities to the demand forecasting function. This has massive implications on the input procurement end where a single out-of-stock input can stall the entire batch, and overstocking can lead to increased input cost or high levels of wastage in the case of time-sensitive inputs. The ability of an ERP connected with a powerful analytics engine can use historical data to predict demand more accurately. This brings order to an otherwise chaotic and unpredictable function and lends it a high degree of flexibility and accuracy.
  • Optimise production process
    Current market conditions require manufacturers to be fast and responsive in terms of production and output. This calls for businesses to manage their production processes more effectively. A well-integrated ERP that connects various functions such as supply chain and inventory with a smart factory can go a long way in controlling the production schedule. Besides being responsive to market conditions, optimising the production process enables companies to implement new revenue models by tapping into emerging opportunities in a timely manner.
  • Enhance asset utilisation
    As machines and shop floors become smarter with sensors and machine-to-machine (M2M) communication capabilities, their ability to transmit data in real-time can give companies a unique edge. Connected to a centralised enterprise-wide system, operators can now monitor operations more effectively. This enables the deployment of automated issues detection and response mechanisms as well as predictive maintenance capabilities. Proactive management of potential equipment failure and timely maintenance minimises downtime and enhances asset utilisation.
  • Reduce production costs
    A drop in sales and demand has put a squeeze on the top line of businesses. As a result, the manufacturing function with a large share of capital and operational expenditure is under tremendous pressure to maximise savings and to do more with less. An ERP that runs across the value chain and a centralised database allow business leaders to monitor critical key performance indicators (KPIs) and derive insights to help reduce cost. Besides identifying wastage of money and resources, it can also rationalise input costs, all of which help reduce the production cost and contribute to the bottom line of an organisation.

At the end of the day, the success of a business or its ability to respond to an evolving operational landscape depends on the quality and pace of decision-making. With large variables to balance and external dependencies, this becomes even more critical for the manufacturing sector.

Upgrading the ERP for an Industry 4.0 environment helps organisations gain better and real-time visibility into the various operational aspects of their operations. This enables a more informed analysis and well-timed decision-making across the organisation and the value chain from the top floor to the shop floor, and from supply chain vendors to customers.

Posted in SAP