Consumer goods and services companies are moving to the cloud
In part one of this blog on the CG&S industry and cloud, we spoke broadly of the advantages of cloud. Here, we’ll look at the overall cloud journey and how to create a roadmap for change.
Part 2 of 2: A roadmap to cloud
How does a CG&S company move most effectively to cloud? There are three potential paths:
Infrastructure-led: Traditional “lift and shift” transformation from an on-premise/private cloud to a public cloud infrastructure, aimed at transforming the core
Applications-led: Driven by capability areas to build new applications and/or rationalize existing application portfolios, aimed at growing the core
Innovation-led: Cloud provides a framework to experiment and try new tactics and strategies in a “fail fast” manner, unlike traditional IT delivery which is often cautious and slow. Cloud can foster innovation and collaboration across IT and business teams as well as the broader ecosystem.
Based on Accenture’s experience, we recommend starting with infrastructure-led transformation to release uncommitted capital investment that could be invested in future phases and facilitate broader cloud adoption. This can give companies breathing room and flexibility to explore niche areas for innovation. In a second phase, companies can institutionalize organization-wide cloud adoption to drive innovation-led growth while reducing operating costs.
Although each CG&S company’s journey to cloud is unique and tailored to individual requirements and cultures, all journeys share five common characteristics.
Use business process-as-a-service (BPaaS) for noncore competencies: Transition work that does not provide competitive advantage—such as HR, procurement, trade settlement and accounting—which a third party can provide at higher quality and lower cost.
Increase software-as-a-service (SaaS) coverage: Help reduce development and maintenance for software that a partner or vendor can provide.
Assess and migrate other apps to infrastructure-as-a-service (IaaS) and platform as-a-service (PaaS): Assess and migrate other apps to infrastructure-as-a-service (IaaS) and platform as-a-service (PaaS): Use standardized platforms to minimize support costs for custom code that truly provides significant competitive advantage.
Reduce use of custom code: Quantify and measure progress toward reducing custom code in the organization, moving to alternative platforms with improved quality and lower maintenance costs.
Rotate vendor usage, but maintain competition: Reshape to a provider ecosystem that provides access to new technologies and helps reduce operational complexity yet maintains competitive pricing pressure.
Three possible paths for #ConsumerGoods & Services cos ready to make the move to #cloud. No. 1, Infrastructure-led:
Creating a roadmap
The roadmap to cloud we recommend to CG&S companies begins with a comprehensive approach to sustain the journey. As a starting point, we believe there are three steps crucial to arrive at a sound strategic destination.
Step 1: Identify the strategic business imperatives that are most pressing for your organization. CG&S companies should first recognize that cloud underpins any digital future, providing the platform, capabilities and accessibility to meet business needs and seize new opportunities.
Step 2: Identify how cloud can potentially help reach your goals. Cloud solutions offer several advantages when it comes to driving growth, creating agility, improving efficiencies and strengthening resilience.
Step 3: Assess your company’s appetite for change.Cloud can facilitate extraordinary change, but delivering value from change requires a range of capabilities that are not available in every company.
Cloud has introduced extraordinary opportunities for CG&S companies to transform how they conceptualize, develop, manage and sell their products and services. When used to its fullest advantage, cloud and all its attendant benefits have the potential to completely redefine what it means to be a CG&S company.
Accenture has broad and deep cloud experience and capabilities, and is developing industry cloud solutions and services to guide our CG&S clients at the pace of innovation on their journey to cloud.