Canadian Organizations That Migrate to Cloud Primarily as a One-Time Cost Savings Activity Risk Missing Out on Competitive Advantages, Accenture Report Finds
Those achieving the most with cloud — "Continuum Competitors" — treat cloud as an operating model for innovation
TORONTO, Sept. 15, 2021 /CNW/ - A new global report from Accenture (NYSE: ACN) has identified a select group of organizations spanning several industries that treat cloud as a new operating model to continuously reinvent their businesses using innovative, multi-cloud capabilities — across public, private and edge — realize greater business value, well beyond cost savings.
Based on a survey of nearly 4,000 C-suite executives at both private- and public-sector organizations globally, including 200 Canadian executives, the report, titled "Ever-ready for Every Opportunity: How to Unleash Competitiveness on the Cloud Continuum," explains why looking at cloud as a one-time migration to a static destination — essentially as a cheaper, more-efficient data centre — is limiting for most organizations, including those in Canada. In fact, a narrow focus on cost savings can actually put organizations at a competitive disadvantage compared to those using cloud more strategically across its many dynamic forms, including public, private and edge.
"While Canada is at the forefront of cloud adoption, many organizations today are deploying a mix of public, private and edge clouds, with little integration between them," Jennifer Jackson, Technology and Cloud First Lead for Canada at Accenture. "This siloed approach limits organizations from reaping the greatest value from the cloud. However, our research found, a small percentage of Canadian organizations are viewing the cloud differently – as a continuum of technologies with diverse locations and types of ownership. They are using cloud as a launch pad for innovation and to develop new operating models, resulting in far greater value than just cost savings and operational efficiency."
The report reveals that while Canadian organizations plan to migrate more than two-thirds of their workloads to cloud, on average, over the next three to five years, only half are using the full potential of cloud in its various forms to transform their day-to-day business operations, carry out knowledge work and modernize applications to meet business needs.
Accenture defines the organizations leading the way in cloud as "Continuum Competitors." These organizations — about 12-15% of respondents globally — stand out by extending the experience they gained from public cloud to their private data centers and edge locations to transform daily business operations. As a result, they achieve substantial gains from their continued cloud engagement and outperform competitors. Continuum Competitors are also much better positioned to withstand future shocks, according to the research.
Cntinuum Competitors include organizations such as Carlsberg, for example.
"A company's future competitiveness hinges on choosing the right type of cloud for the right applications, and choosing cloud-based services across the continuum," Jackson said. "Technologies like artificial intelligence, smart contact centres, edge computing, robotic computing and extended reality can give Canadian companies that competitive advantage. But all require a cloud-first approach, which allows for better customer experiences, smarter business processes and more sustainable products."
Unlike organizations whose cloud efforts focus primarily on one-time migration to cloud for cost savings and efficiency, Continuum Competitors in Canada are:
By studying Continuum Competitors' use of cloud, Accenture has identified four winning cloud approaches applicable to any organization:
Accenture's "Ever-ready for Every Opportunity: How to Unleash Competitiveness on the Cloud Continuum" research arrives at a time when Canadian organizations have been forced by the pandemic to provide their customers with unique experiences and serve them in new and virtual ways. Prior global research from Accenture found that companies, including those Canada, that scaled technology innovation during COVID-19 are growing revenue approximately five times faster than lagging adopters of technology innovation.
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