Cloud computing is triggering a stunning shift in how businesses operate. Modern SaaS applications for marketing, HR, and ERP are allowing companies to accelerate operations and engage more intimately with their customers thanks to heretofore unseen heroes in their ranks.
In the course of just a few years, this new generation of social/mobile SaaS applications with built-in analytics is redefining mission-critical business priorities while erasing the traditional distinctions between front-office and back-office activities.
These changes are essential for companies striving to remake themselves into smarter and faster-paced organizations that can move in lockstep with customers’ rapidly shifting requirements. And at the center of these dramatic transformations are SaaS applications that are easier to procure and install, that are upgraded more frequently, and that mirror the work styles of today’s businesspeople as well as consumers.
Until just a few years ago, CEOs would tell me that while they were eager to move functions such as marketing and HR to the cloud, they were planning to keep all mission-critical systems on-premises for reasons of security and risk management.
At the time, that was a perfectly rational and well-considered strategy. Marketing, HR, and sometimes ERP were seen as vital but not mission-critical processes that could serve as test cases for the new cloud computing model. If all went well, the business would gain some savings and other benefits. If there was a problem with the new approach, no production systems would be involved.
But since then, many CEOs have dramatically changed their outlook about the cloud and how widely it can and should be deployed within their businesses—and with very few exceptions, those executives are becoming much more bullish on the cloud. So in 2015, I predict we’ll see some profound manifestations of that revised C-suite outlook, particularly in these four areas:
- The rise of the end-to-end cloud. The sweeping successes many businesses have experienced with marketing clouds and HCM clouds are causing CEOs to take a fresh look at moving all of their business processes—not just the ones traditionally thought of as non-“mission-critical”—to the cloud.
- Redefining “mission critical.” As modern SaaS application suites for HCM and marketing have generated huge new levels of business value via their enhanced capabilities and social/mobile optimization, CEOs are reclassifying marketing and HCM as mission-critical because of their specific and quantifiable links to revenue, customer engagement, and strategic execution.
- Driving transformation. CEOs are embracing the cloud as a primary lever for end-to-end business transformation both internally and externally. Inside the company, CEOs realize that SaaS apps can be deployed enterprisewide rather than in isolated pockets, and externally, marketing cloud applications are transforming how companies connect with buyers, execute transactions, and develop long-lasting two-way engagements with them.
- Unleashing financial insights. The venerable world of ERP is shifting rapidly from a complex back-office realm run by a small set of specialists who created a history book of financial information into a forward-looking tool for strategic analysis and opportunity.
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