How is Cloud ERP Digitally Transforming 21st-century Enterprises?
Many enterprises are moving their core business processes to the cloud and embracing enterprise-wide SaaS initiatives. By 2018, it is estimated that more than 50% of applications hosted in the public cloud will be considered mission-critical by the organizations that use them.
All sectors are being confused by this rapid change of cloud adoption, and value creation through these digital technologies must be the number one focus for all organizations that seek a sustained, competitive advantage. Therefore, it became obvious that cloud strategy will facilitate new revenue streams, enhanced customer service, and cost reductions that were not previously possible.
Oxford Economic says, “ Digital transformation is increasingly understood as a matter of survival for all the enterprises. Most are planning to make the sweeping, technology-driven organizational changes that define the digital transformation, and a growing majority say these adjustments will be essential to their competitiveness in the near future ”.
They surveyed over 3,000 executives in 17 countries about their readiness for digital transformation, including more than 1,300 companies with revenues below $500 million. We also analyzed responses from companies with $500 million to $1 billion in revenue to better understand how digital transformation efforts change as companies grow.
They found that more than half of all the enterprises see the digital transformation as a core business goal. The goal is viewed with growing urgency: more than 80% see such initiatives as critically important to their company’s survival. And while companies are increasingly focusing investments on digital technologies, overall progress towards comprehensive digital transformation remains limited.
- How are the enterprises going about digital transformation?
- What challenges do they face?
- How will their efforts pay off?
Among the key findings:
Technology is essential
Executives from most of the enterprises expect technology change and the increasing pace of change to have a major impact on their organization over the next two years. And nearly three-quarters say technology is essential to growth, competitive advantage, and improving the customer experience.
Human capital matters
Effective management is the most important factor in the success of digital transformation for all the enterprises. The core component in the success of these initiatives would be to equip the workforce with up-to-date skills.
Transformation drives performance
Every company expect digitization to improve business performance for a wide range of functions. Also, to help their organizations meet critical goals, including more efficient business operations and stronger financial performance. Well-run all the companies share some defining characteristics with truly digital enterprises:
- Companies that are using technology to radically improve enterprise performance
- Includes engaged workers, a lack of bureaucracy, opportunities for collaboration, strong relationships with leaders and employees
- An ability to adapt quickly to change.
But most of the companies also face unique challenges. Also, with the available resources, they need to be strategic and precise with their decisions and investments to make transformation a reality.
If you are looking to enhance your business value with Cloud ERP, please get in touch with me at email@example.com. Furthermore, you can commence on your roadmap to Cloud with our unique enterprise readiness assessment.