Citation
Gorrell, C. (2012), "How cloud computing enables process and business model innovation Saul J. Berman, Lynn Kesterson-Townes, Anthony Marshall and Rohini Srivathsa", Strategy & Leadership, Vol. 40 No. 4. https://doi.org/10.1108/sl.2012.26140daa.006
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited
How cloud computing enables process and business model innovation Saul J. Berman, Lynn Kesterson-Townes, Anthony Marshall and Rohini Srivathsa
Article Type: Quick takes From: Strategy & Leadership, Volume 40, Issue 4
Cloud technology provides a new platform for creating and delivering business value and therefore can fundamentally shift competitive landscapes.
The cloud modelCloud computing is a pay-per-use consumption and delivery model that enables real-time delivery of configurable computing resources (for example, networks, servers, storage, applications, services). Typically, these are highly scalable resources delivered over the Internet to multiple companies, which pay only for what they use. Organizations are not only relying on cloud services to enhance internal efficiencies, but also to target more strategic business capabilities. So the question is “How best to employ cloud-enabled business models?”
Six key attributes: ways to use the cloudSix key cloud attributes being used to power business model innovation are: cost flexibility, business scalability, market adaptability, masked complexity, context-driven variability and ecosystem connectivity (see Exhibit 3).
Three business approaches to cloud useThe approach choice depends on a variety of factors, including how much risk they are willing to assume and their current competitive landscape:
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Optimizers use cloud services to incrementally enhance their customer value propositions while improving their organization’s efficiency.
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Innovators significantly improve customer value through cloud adoption, resulting in new revenue streams or even changing their role within an existing industry ecosystem.
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Disruptors rely on cloud services to create radically different value propositions, as well as generate new customer needs and segments – and even new industry value chains.
Navigating the cloudHow to best realize the full potential of cloud? Begin by challenge existing approaches and realities. Imagine the possibilities associated with cloud-enabled business models by considering some questions:
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What if your organization had access to unlimited computing resources to scale your business?
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What if you had access to previously unaddressed customers or markets and could target them based on their individualized preferences through analytical insights?
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What if you could give customers access to your products and services anytime, anywhere and on any device?
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What if you could inexpensively and rapidly develop and launch new product and service offerings?
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What if you could easily and seamlessly connect and collaborate with business partners and customers?
Bottomline: Successful organizations will leverage cloud capabilities as a key point of differentiation in driving business value and success.