Accenture: Maximise your cloud value
Nearly two thirds of companies have not fully embraced cloud adoption despite the urgency from COVID-19 to force their hand, according to a new report from consultants Accenture.
However, top cloud adopters have achieved distinct benefits, though results vary by adoption rate, company size and geography, reveals a survey by Accenture who polled companies on their cloud initiatives.
“With companies moving more workloads to the cloud, nearly two-thirds of companies are failing to capture the full value expected from their initiatives,” comment Accenture.
“Businesses have increasingly turned to cloud migration to improve elasticity, efficiency and innovation,” says the report.
“The onset of the COVID-19 pandemic turned cloud adoption into a mandate: Becoming "cloud first" is now recognised as key to surviving in an era of socially distanced remote work, online commerce and a more challenging business environment generally.”
But the road to the cloud’s transformational benefits can be complex involving multiple dimensions including rethinking strategy, technology, skills development, business processes as well as organisational design.
In the new Cloud Outcomes research, Accenture surveyed companies to pinpoint how far they are advancing in terms of the business value achieved from cloud initiatives.
The results, outlined in the report Sky high hopes: Navigating the barriers to maximizing cloud value, are a wake-up call for business. Accenture’s last survey in 2018 found that 35% of companies had fully achieved their expected outcomes from cloud. Nearly two years later the report reveals the following:
- Full achievement of outcomes has not increased - holding steady at 37%
- Even high adopters struggle, with 52% reporting they have failed to achieve the expected value from their cloud initiatives
- The percentage who say they are very satisfied with the cloud outcomes achieved to date showed little change: 45% in 2020 (versus 44 % in 2018)
- Only 29% are confident their organisation’s cloud migration will deliver the expected value
- One in four organisations always or usually run into unexpected complications during cloud migration initiatives
“We discovered that most adopters haven't fully achieved their expected outcomes while leaders' confidence in the migration is relatively low. The results should serve as a wake-up call to business leaders: As you navigate to the cloud, be aware of the barriers that can erode value,” commented Accenture.
The survey shows that cloud adopters are seeing real benefits, namely: greater cost efficiencies, improved service levels and faster speed to market. Cloud migration has enabled them to re-imagine their business models and build resilience into their companies.
“High adopters tended to be ahead of the curve in working with partners to achieve their cloud results: We found that 29% of high adopters use cloud managed services “to a great degree,” nearly three times more than moderate adopters and ten times more than low adopters,” says Accenture.
Two other characteristics common to the most successful cloud adopters were larger companies, with $10B or more in revenue, and were often based in Latin or North America. “The largest companies saw the most success in the areas of speed-to-market and service level benefits.”
Four steps to capture value from the cloud
- Business value focus
Develop a cloud strategy anchored to economic business cases to identify revenue upside and cost efficiency opportunities while aligning goals.
- Workforce and culture change management
Implement talent readiness programmes and new operating models to evolve culture, transforming how people work and how they meet rapidly changing needs.
- Data and AI
Unlock industry and function-specific data insights trapped in legacy systems through cloud data models.
- Partnering for success
Leverage the skills and experience of appropriate partners. Cloud managed services can help companies access key skills while keeping costs down.
5 minutes with... Janthana Kaenprakhamroy, CEO, Tapoly
Founder and CEO of award-winning insurtech firm Tapoly, Janthana Kaenprakhamroy heads up Europe’s first on-demand insurance platform for the gig economy, winning industry awards, innovating in the digital insurance space, and leading with inclusivity.
Here, Business Chief talks to Janthana about her leadership style and skills.
What do you do, in a nutshell?
I’m founder and CEO of Tapoly, a digital MGA providing a full stack of commercial lines insurance specifically for SMEs and freelancers, as well as a SaaS solution to connect insurers with their distribution partners. We build bespoke, end-to-end platforms encompassing the whole customer journey, but can also integrate our APIs within existing systems. We were proud to win Insurance Provider of the Year at the British Small Business Awards 2018 and receive silver in the Insurtech category at the Efma & Accenture Innovation in Insurance Awards 2019.
How would you describe your leadership style?
I try to be as inclusive a leader as possible. I’m committed to creating space for everyone to shine. Many of the roles at Tapoly are performed by women and I speak at industry events to encourage more people to get involved in insurance/insurtech. Similarly, I always try to maintain a growth mindset. I think it’s important to retain values to support learning and development, like reliability, working hard and punctuality.
What’s the best leadership advice you’ve received?
Build your network and seek advice. As a leader, you need smart people around you to help you grow your business. It’s not about personally being the best, but being able to find resources and get help where needed.
How do you see leadership changing in a COVID world?
I think the pandemic has proven the importance of inclusive leadership so that everyone feels supported and valued. It’s also shown the importance of being flexible as a leader. We’ve had to remain adaptable to continue delivering high levels of customer service. This flexibility has also been important when supporting employees as everyone has had individual pressures to deal with during this time. Leaders should continue to embed this flexibility within their organisations moving forward.
They say ‘from every crisis comes opportunity’, what opportunities do you see?
The past year has been challenging, but it has also proven the importance of digital transformation in insurance. When working from home was required, it was much harder for insurers to adjust who had not embedded technology within their operating processes because they did not have data stored in the cloud and it caused communication delays with concerned customers at a time when this communication should have been a priority, which ultimately impacts the level of customer satisfaction. This demonstrates the importance of what we are trying to achieve at Tapoly in driving digitalisation in insurance and making communication between insurers and distribution partners seamless.
What advice would you give to your younger self just starting out in the industry?
Start sooner, don’t be afraid to take (calculated) risks and make sure you raise enough money to get you through the initial seed stage.