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Invoice Management: Introducing the Digital Invoice Processing

 Digital Invoice Management

The cost of classic invoice management, such as costs for paper, printing & shipping material, proper and audit-proof archiving of all tax-relevant documents has been increasing for years. The growing expenses burden gets not only internationally active corporations with hundreds of thousands of billing transactions per month. Also, SMEs with a few hundred or thousands of invoices per year are in chaos and are increasingly looking for cost-effective ways to counteract & reduce the cost of invoices and improve processes.

 

So, it is not surprising that the topic of obvious savings and optimization is on everyone’s lips and that the optimization process of invoices and system support is in high demand. Therefore, Digital Invoice Management is more and more seen as a possible way out of misery. But how much potential is there in the real processes of today?

 

In the digital invoice management solution, invoice receiving, invoice output, and invoice archiving are the main processes that most companies are looking for, regardless of transaction volume or industry focus. The biggest challenge when receiving invoices is usually the effort involved in receiving, opening, distributing, and forwarding incoming invoices of various types, formats, and transmission routes caused. Because those times are long gone when the supplier invoices arrived into the company only via post, the electronic invoice receipts continue to increase parallelly.  In most companies, the invoices still arrive in different departments, making the automation process difficult. With the digital invoicing management system, companies can automate how, in what form, to whom, and where the various invoices are to be received/sent. A central mailbox must also be set and dedicated for all incoming invoices. Employees from different departments can then forward all incoming invoices to this mailbox.

 

Digital invoice management ensures noticeable time savings and reduces the process costs within the company. Digital invoice management has proved to have a positive effect on the waiting and processing times of invoices. With digital invoice management, it’s easy to create the necessary transparency and at the same time ensure that customers, business partners, or suppliers can provide a high level of information. Reporting also provides a real-time overview. So, you always know the exact status of all invoices in your company. Also, as the options for the degree of automation of invoices can be set from simply, knowing the status of the bill, reading out a few metadata to fully automated processes, only relevant data is transferred to the accounting department.

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82% of finance departments are overwhelmed by the high numbers of invoices they are expected to process on a daily basis and the variety of formats they’re received in. Thanks to digital invoice management in combination with a DMS, all documents are automatically filed in the correct digital file. It’s easy to find invoices again quickly at any time and benefit from high availability and the provision of specific information. For example, you can search for a specific invoice number and find it in seconds. After recording/archiving the invoices digitally, employees can have a holistic overview of invoice management in the company. The use of digital invoice management with the right software also complies with all the requirements of GDPR.

 

Although digital invoice management alone has numerous advantages, it is only through intelligent interfaces, e.g., to a document management system (DMS), that the full potential of digital invoice management can be achieved. Once the companies’ entire invoice workflow is digitally mapped and invoice management can become a routine task.

 

Digital invoice processing improves your workflow through automated checking and approval processes. With personalized workflows, you can easily route information to the right person for further processing or approval. By eliminating paper-based and manual processes, you can bring immediate quality improvement and productivity gains. In addition, errors and delays in the recording and processing of invoices can be reduced. It can be stated that you not only save time but also workload through automated invoice processing. With the implementation of digital invoice processing, you make the process simpler, leaner, and more transparent.

 

Would you like to find out more about digital incoming invoice processing? Our competent and experienced consultants are at your disposal.

Why is Change Management mandatory for Digital Transformation?

The topic of digitization is omnipresent – and is discussed daily in the media. Digital technologies and their unlimited availability via the Internet are fundamentally changing companies. These technological transformations are altering the world of work as never before. The combination of machines and humans is leading to unimaginable innovations. Forcing companies around the globe to reinvent/revolutionize their business models, redraw the boundaries between industries, and create new interfaces for the customer with the help of digital technologies.

 

These digital advancements are the main motive for companies to adapt and deal with the changes in their work environment. Although digitization is now almost in part of everyday life – it brings changes that trigger fears among many employees. Dealing with such changes in companies can be a hurdle without well-defined change management.

 

“Change Management is the general term used to describe the approaches that businesses take when making both short and long-term organizational change, both of which are often necessary for businesses that want to survive and be successful”. Sustainable change management must keep an eye on social and economical challenges. It must not only take into account the digital transformation but also acknowledge the society and demographic changes as well as productivity and social demands.

Change Management helps your Business

Think globally, act locally. Worldwide companies are increasingly doing business in an international context. Therefore, change management must also be able to control, learn and act across cultures and nationalities.

Change is inevitable and is nature’s law. Management often finds it challenging to make employees adapt to the change quickly and often underestimate their employees which results in the downfall of even the biggest business empires. The key question from the company’s point of view should be: How can we ensure, in a continual state of change, that the employees actually have a sustainable mix of skills, to get the best from them, to achieve strategic goals?

 

Following are some easy ways for you to help your employees adapt to change in the workplace:

 

  • The company’s culture influences the pace of innovation within the organization because digital transformation requires both executives and employees who are willing to take risks and seize opportunities. Therefore, the focus must be put on the corporate culture before opting for any corporate changes or every transformation. Employees must be well prepared to accompany the change and support the new digital strategy for the long term.

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  • With digitization, the challenges faced by employees are also changing rapidly. All members of the organization are equally involved in realizing a shared vision. This means that companies are responsible for ensuring that their workforce meets the requirements of tomorrow and develops relevant skills. A training model for employee development in the digital transformation must be elaborated, with which skills are built up in a sustainable and targeted manner. Additionally, everyone at different levels of the company and in different project teams works together to build trust, promote transparency and involve all employees.

 

  • Change is inevitable, it’s not a single project with a beginning and end. As technology is constantly evolving; current processes have to be constantly adapted. Digital businesses never change the company’s core values ​​or offerings. Instead, it is about developing a networked work culture and acquiring digital tools that support the company’s strategic goals. Thus, it is also important for employees to keep learning and developing.

 

In the current digital transformation landscape, the capability to address and adapt to change within an organization is becoming an essential element of survival for worldwide businesses.  If your company is preparing to undertake digital changes or struggling to manage them, Feel free to reach out to our consultants that offer a wide range of business and technical know-how as well as the necessary instinct to solve the individual challenges of your organization. We can’t wait to help you find success.

Cloud Computing: How can the Business Continuity be Ensured

In order to stay competitive in a world where digital transformation dominates the ways of doing business, companies are accelerating their digital initiatives. This represents a huge increase in business-critical online data and applications. The high availability of these digital assets is therefore becoming increasingly important. Many organizations are also faced with the challenges to evolve their resiliency strategies fast enough to meet today’s hybrid IT environments and changing business needs. In a 24/7 active world, companies around the globe can either gain a competitive advantage or can be left behind depending on how to continue business operations and provide products/services without delay after a system failure. Thus, business continuity is not only an issue for big or medium-sized enterprises but also for smaller companies.

 

We all know that downtime in IT can be very expensive. According to ITIC 2021 Hourly Cost of Downtime Survey, the hourly cost of server downtime can easily top $1 million. Because there are so many differences in how businesses operate, downtime, at the low end, can be as much as $1-5 million per hour, plus the costs for legal advice and any fines along with the business interruption, lost productivity, and recovery effort.

Monetary Cost of Hourly Server Downtime Per Minute Per Server

These high costs encourage companies to include business continuity in their disaster recovery (DR) plans. In this context, the Business Continuity Cloud offers one way of avoiding the high damage caused by failures. Cloud platforms offer numerous advantages along with offering simple and, most of the time, economical solutions, depending on companies’ needs. They provide companies with flexible solutions for mapping new workloads, handling large amounts of data, and using them profitably. In addition, the cloud also helps to ensure that business-critical applications remain available even if there is a failure at the main site – for example, due to a cyber-attack, sabotage, a natural disaster, user error, or remote working

 
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The cloud-based storage and recovery solutions are easier to set up, manage, and customize than traditional disaster recovery solutions. Businesses can continue to use Cloud DR as needed. But before opting for any cloud solution, a business continuity strategy must be defined, which must clarify, which paths contribute most to the company goal. In this, companies should also specify which processes can be secured better via infrastructure or application services. When selecting the appropriate process, it is always helpful if one can calculate, how high the company losses would be in the event of a longer failure of certain applications. A business continuity cloud solution has a unified management interface and helps to protect the entire IT ecosystem with technologies for backup, disaster recovery, high availability, and email archiving – including all applications and systems. The protection exists regardless of whether the IT systems are on-premises or in the cloud. Downtime and data loss can be avoided anywhere and in any structure with the Business Continuity Cloud but the priorities must be well defined in the beginning.

 

We advise you on all questions regarding the introduction, update or optimization, maintenance, and further development of your IT systems according to your needs and are at your side as a competent partner. We are happy to assist you in all technical areas. Thanks to our many years of experience, we know what is important, which hardware and software make sense for your work processes. Just contact us and we will be happy to advise you.

 

Source: 

ITIC 2021 Global Server Hardware, Server OS Reliability Report

Security Tips for Remote and Mobile Working

Security tips for remote working

Mobile security plays a big role in staying safe as many companies want to enable their employees to work securely on smartphones or tablets while they are on the road or away from the office – but they often fail due to IT security requirements. In order to achieve the highest possible security and data protection, companies must implement organizational and technical measures, to protect corporate data and systems.

 

Here below is a list of a few tips that can help employees to protect their organization’s security:

 

    • Free Public WiFi: Working on free WiFi can be attempting for employees who pay for their own data plans. They must be aware that these networks are not secure enough to use when logging into secure systems or transmitting sensitive information (customer data, credit card numbers, etc.). They must access companies’ data via their secure connection at home or enable their 4G for secure connectivity when they are on travel.

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    • VPN: companies that have employees using remote access applications, should use a VPN. With its help, employees can get a flexible connection on different online services and protect the traffic. VPNs allow the creation of a secure tunnel by means of data encryption during the connection. And as it grants access to all work applications and information employees haves feeling of working from the office.

 

    • Password management: When it comes to password management, employees use to take it very light. A good password management is the key to remote working security. Access to the applications containing crucial business and customer’s data must be protected with a strong password that contains at least eight characters, among which there must be capitals, low case letters, numbers, and special characters.

 

    • Two-Factor Authentication: Two-factor authentication is also considered for password protection. It adds an additional layer of security to the authentication process and makes it harder for attackers to gain access to employees’ devices or online accounts. It’s used to limit and control unwanted access to sensitive data.

 

    • Remote Access Applications: organizations must define which applications and data employees can use with their mobile devices, email programs including calendars and contacts, a browser, a document repository, and product and pricing databases.

 

    • Data Encryption: Protecting organizations’ and customers’ personal data is vitally important to the success of any organization. Encrypting that data with one of the best practices to be on the safe side. In the case of remote working, sending emails with sensitive data represents a huge risk. It could be intercepted or seen by a third party. If you encrypt the data attached to an email, it will prevent an unintended recipient from viewing the information. Also, be sure your device is set to have all stored data encrypted in the case of theft.

 

    • GDPR: As GDPR requires companies to have a 180-degree overview of the existing data, they must make data roadmaps with information such as, where the data is located, who is using the data – and is that data is being used in office equipment or remote devices.

 

    • Physical security: Employees must pay extra attention to their devices or files that contains companies’ important data once it’s out of the office perimeter and it’s not in use. Devices with important data in it, must not be left unsecured and unattended in any circumstance.

 

Remote employment is becoming more and more famous thanks to the advanced technologies and the flexibility it offers. Business must give extra attention to the security issues that can come along with the deployment of remote work. They must work on strategies that protect employees and business against cybercrime and offers a safe remote workplace.

CRM Automation: How can you elevate your Customer Relationship Management?

CRM Automation How can you elevate your Customer Relationship Management

The automation of companies has become a trend of our time. The modern market has set its own rules. The perfect product alone is no longer enough. In addition to the ideal product, customers also demand impeccable service. If a good product and competitive pricing are no longer enough to gain customers’ loyalty, then a personalized experience will have to be your differentiator. The competition is very strong, so a modern entrepreneur should pay close attention to customer management. Because one thing that 2021 has taught us, is to add good service to even the best product. Thus, automation is one of the most effective ways to effortlessly streamline your business.

 

The corona pandemic has further accelerated existing trends in automation. More and more companies want to automate their processes with the help of their CRM. The trend of collecting, unifying, and transforming customer data is becoming difficult and time-consuming without a proper data integration tool, but new offerings are finally making it possible for small and medium-sized businesses to do the same. One of the biggest benefits of automation is that instead of manually filling out all the documents, your team can let the software do it automatically. This gives them the opportunity to spend their valuable time on more important things. The software is programmed to work flawlessly, saving you a lot of problems and headaches and making the choice between tradition and automation obvious. CRM is becoming more and more synonymous with automation. The global CRM market is poised to reach about $113.46 billion by the end of 2027 (Globe Newswire, 2021).

 

As CRM takes care of a significant portion of the work processes; you don’t need to hire a big team to do the job but some entrepreneurs are still afraid to introduce the innovation because they are not sure if this solution really works and will be accepted by their team. Along with the fear of change, often companies don’t have an integrated approach to contact information and use different customer relationship management solutions that don’t communicate with each other. Without data integration tools, the process becomes difficult and time-consuming. In such a situation, employees need to log into multiple systems, download multiple sets of data to create their own unified customer database.

 
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On the other hand, the organizations which have successfully adapted to the new situation, use new tools and technologies to review and adapt their sales process to close more deals. Businesses that implement CRM automation experience an average of a 451% increase in qualified leads. (Annuitas Group). The CRM system, allows them to manage all contacted data of their customers and business partners in a structured and clear manner. They can record interactions and collect all important information about them along the customer journey, the journey from lead to purchase. Also, by bringing valuable data together, they are able to better understand and respond to the needs of their customers. Without electronic support, this mass of data cannot be handled at all.

 

Software for consolidating customer data easily connects disparate silos so data can be shared across systems for trend analysis, better decision-making, and greater customer satisfaction. For instance, using chatbots for communicating with customers, automating helpdesk tickets, or using automated email workflows to assist prospects in the sales process, customer management automation is on the rise. This automation enables companies to provide quality customer service while optimizing operational costs. The tools for this are also becoming easier and cheaper, which is why this is becoming more and more interesting, even for smaller companies.

 

However, it’s very important to choose software that is suitable for your team. Many CRMs look too mysterious but work as simple appointment schedulers. Therefore, the demand for quality software is very high among both small and medium-sized businesses. Well-designed software is user-friendly, which makes it easier for managers to explain the importance of the new software to their employees. It should definitely be done, and in this case, it’s not complicated.

A fully-integrated CRM system offers significant benefits but you must look for implementation options, scalability, adaptability, business value, and, of course, best value for money. The focus must always be on the individual requirements and needs of your company and the associated tasks, but also on employees who will use the system in the future.

Data: A key resource for Digital Business Models

Businesses are generating and collecting large amounts of data, due to the rapid digitalization in all sectors and industries. Digitization has come to stay so not only the volume but also the variety of data – structured and unstructured – is growing exponentially in companies around the globe. New sources of income and growth opportunities are what companies strive for today. The evaluation and analysis of data help significantly and are becoming more and more important for companies – because the results of such analysis are considered as a strategically valuable asset.

Data A key resource for Digital Business Models

Companies don’t just want to collect the data, but their goal is to get real benefit from it. The analysis of data, which arises from individual digital interactions, generates significant added value for companies. This also includes the processing of omnichannel data, regardless of whether they are structured or unstructured, to get better insights into the entire customer journey. In order to unlock this potential in companies, a data strategy is required, i.e. a plan for data value creation in the company. Because only those who use data in a targeted and intelligent way can make better and faster decisions, optimize processes, improve planning or develop new approaches, define new customer-specific offers, or even innovate the entire business model & define short- and long-term objectives.

If implemented correctly, a data strategy offers companies from all industries and, in all areas of the company, sustainable benefits. In the transformation process, management must take into account the data infrastructure, data management, the general data strategy approach, and data analysis and its use.

 

Data infrastructure

The development of future-proof and efficient data infrastructure is based on a high degree of flexibility in data generation, virtualization, and processing. For high-quality data analysis, companies should therefore increasingly focus on independent software components (microservices) that have interfaces with common communication standards and thus enable quick and flexible integration into new applications without detours. Particular attention should be paid to fast network architecture, the prevention of data silos (e.g. by introducing a data lake), and the inclusion of secure cloud solutions.

 

Data strategy

The development and implementation of a data strategy often present companies with challenges. A suitable data strategy must be adapted to an organization and its objectives. It defines how data is handled and which goals are pursued. Since data value creation is not just a technology issue, but rather affects almost all areas of the company as the core of digital transformation, uncoordinated and decentralized approaches often do not lead to success.

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Therefore, a correspondingly fast and agile strategy is required to achieve results quickly. If the decision is made on a static approach, the motto is usually “defense instead of attack”. The focus is clearly on strict regulations in the handling of data and data quality. With a strategic approach, companies choose the middle ground between strict guidelines and targeted data usage. Companies that take a dynamic approach to data handling use a large amount of data in order to be able to react quickly to market changes and to improve their own analytical skills. Fast data access and quick results are important here. In the dynamic approach, cost savings and profitability through the use of data come to the fore. Flexibility in analysis and quick availability of results, for example through user-friendly data visualization, is essential.

 

The data warehouse

No matter what you need your data for and how you ultimately create your data strategy, every modern organization with a lot of data needs modern data warehousing. The data warehouse is the universal place where data from many different sources is collected. If you are planning a suitable data strategy, the data warehouse is one of the most important core elements to be reviewed. In many companies, IT teams are looking for a suitable data strategy that simplifies administration and helps to draw value from all the existing data. A modern data warehouse must therefore be part of a successful data strategy. Companies working on a data strategy cannot avoid modernizing their data warehouse. And one of the most important tasks in this modernization is the automation of the data warehouse.

 

The goal of a strong data strategy should always be to build an organization where agility is an integral part of its DNA. Such an organization works with an operating model that focuses on the employee and the customer. The model equips the company with the ability to quickly recognize changing business requirements and to continuously develop. We support you in designing, implementing, and integrating data correctly into your existing system landscapes and thus into your processes. Feel free to reach out to our consultants that offer a wide range of business and technical know-how as well as the necessary instinct to solve the individual challenges of your organization. We can’t wait to help you find success.

 

 

Sources:

SAP White Paper: Digital Transformation – Digital Business Modeling A Structural Approach Toward Digital Transformation

It Takes Next Level Preparation to Achieve the Best of Your Cloud Migration

a cloud migration steps

Nothing is built for eternity in IT. Applications that were state-of-the-art ten years ago no longer meet the needs of agile enterprises. Every day, industry leaders are competing with digital upstarts that develop their business exclusively in the cloud. To fight this battle, Innovative CIOs are therefore migrating their applications and data management to the cloud.

They want to benefit from the flexibility, diversity, security, and scalability of powerful and highly available cloud services for their digital transformation. But you only unlock these potentials if you prepare yourself and your IT departments well enough. Here below is a five-step preparation to respond to the demand.

 

  1. Question everything and rediscover your business

Do not leave one stone on the other and analyze all previous processes. Ask the right questions: What needs to change? What are the consequences of migrating certain applications to the cloud? Which adjustments are necessary for the work processes, the responsibilities? Take all departments with you on your journey. As cloud migration means much more than the introduction of new technology, the entire organization to the last employee must understand where the journey is going, what is being done, and what needs to change. Rather, it means developing into an agile organization because the cloud also works with agile methods, since every four to six weeks is an update. So, a company is constantly benefiting from new and best practice solutions when it is ready to adapt. To keep pace with this rapidly changing infrastructure, the new cloud services need to be designed and implemented so that you and all departments move at the same pace. For many companies, this is a significant change.

 

  1. Define agile business processes to unlock all of the cloud potentials

If you have not yet established agile work processes, you will need to introduce them with cloud migration at the latest. Because the effects of constant updates circulate in all areas. The departments also need to be more agile to ensure continuous integration of new features. You need to involve senior executives in prioritizing and approving. The specialist departments and project teams will have to collaborate in the future like an interconnecting gearbox in a single machine. As the development tool spins faster to support agile processes, it also forces everyone else to spin faster. This may be annoying at first, but the long-term benefits will be enormous. The organization as a whole becomes more agile, which speeds up day-to-day operations and workflows. Product development, marketing, and sales can react much faster to market opportunities and competitive pressure. Developers can quickly implement new features to meet important customer needs. Thanks to the scalability of cloud applications, they can optimize IT investments along with the services they request.

 

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  1. Think networked in processes, technologies and especially in people

In the face of agile and accelerated processes, cloud migration is never just a technology introduction, but always a change process for the entire company. Ask about the effects on people and processes: which people are directly, and which are indirectly affected? Who needs to be hired and who needs further education? What effects does this have on the ongoing processes? In order to handle the three dimensions of people, processes, and technology equally, you need a change in the current management method.

 

  1. Set priorities and start with the easy-to-reach Quick Wins

The implementation of cloud migration is a complex challenge in which some tasks are highly useful and can be implemented quicker. Other areas, however, have a low benefit and require high expenditures. Prioritize all tasks with an XY matrix, where you divide the quadrants into high and low utility and low and high overhead. Then start with the implementation with the tasks that offer a high utility value with little effort. Such “quick wins” give their project energy and help to convince the skeptics. Tasks with little benefit and high effort can postpone your entire project. The intervening tasks should be sorted according to the organizational needs.

 

  1. Formulate your vision with clear goals and document your concept

Many cloud projects begin with an informal discourse that quickly brings about much agreement. It is better, however, to document the concept and to define the key factors in it. For example, a cloud migration project needs a vision with clear goals for the next one, three, and five years. Describe the benefit for your business and how it will evolve. Create a roadmap that defines competency progress and milestones. Sketch the solution architecture for full implementation and how your business will transform along the way. This document provides guidance to all project participants in the implementation process and ensures the long-term success of your company on the path to digital transformation.

 

Unlimited Productivity: Why a resilient Hybrid IT is important for post-Covid recovery?

Unlimited Productivity Why a resilient Hybrid IT is important for post-Covid recovery

 

Hybrid IT refers to mixed computing, a combination of cloud and on-premise technology in which storage and services are made available in any combination of MAKE (self-provided) and BUY (provided by the service provider in any form) so that the best functions of on-site solutions can be used in conjunction with the best functions of cloud solutions. In short, a combination of public clouds, on-premises computing, and private clouds in your data center means that you have a hybrid cloud infrastructure.

 

Businesses all around the globe are under pressure to innovate, thus the move to hybrid cloud adoption is motivated not only by cost-saving but in supporting fast-moving digital business transformation within companies. As the key benefit of the hybrid cloud is agility, businesses ’ needs to adapt and change direction quickly are focused. The better integration and interaction work, the more successful your company can operate. Flexera 2021 State of the Cloud Report highlights 87 percent of enterprises have already adopted hybrid cloud strategies and an estimated growth rate of 17% has the hybrid cloud industry pegged to inflate from a valuation of $44.6 billion in 2018 to almost $100 billion by 2023.

 

types-of-clouds-used

 

Hybrid clouds offer the benefits of both public and private clouds and take advantage of existing architecture in a data center which is why a hybrid mixture of cloud services are chosen by forward-thinking companies. Worldwide end-user spending on public cloud services is forecast to grow 23.1% in 2021 to total $332.3 billion, up from $270 billion in 2020, according to the latest forecast from Gartner, Inc.

 

By mixing the different cloud models, their advantages can be combined. With hybrid IT, companies benefit from the flexibility of the public cloud and the high-security standards of the private cloud or the full control of their own data in an on-premise environment. For example, it is possible to operate a database in a private network while the associated application is running in a public cloud. The advantage: the data is very well protected and the performance of the application is practically unlimitedly scalable at the same time. However, companies must make sure that they know exactly where which data is processed and how they distribute which processes to the various operating models. Otherwise, there is a risk that security-critical data will end up in the public cloud. In addition, hybrid cloud solutions are significantly more complex than pure public cloud or private cloud environments.

 

The pandemic has exposed vulnerabilities in business that have been hidden for too long. Companies are finding it hard to continuously adapt when their systems are separated. With work-from-home policies and automation becoming new norms, the Hybrid Cloud is entering the next digital era in exponential dimensions. But in the end, it is primarily the security requirements for your data that decide which cloud model is suitable for you. If you process data that are not linked to any special data protection requirements, a public cloud offers you numerous advantages in terms of flexibility, scalability, and cost structure. If your company processes particularly sensitive data that, for example, may not be transmitted, private clouds or hybrid cloud environments come into question. Hybrid clouds have the advantage that they are even more flexible than private clouds. However, they are much more complex in operation.

 

While hybrid implementations can lead to unprecedented complexity in some cases, we at Xorlogics help enterprises navigate this challenge. Get an individual consultation with our cloud experts to know which path to the cloud is best suited for you.

 

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Cloud Computing: Trends for 2022 and beyond

 

Cloud Computing Trends for 2022

Although cloud computing isn’t a new concept and the benefits of the cloud are well known for a long time, cost optimization, security, data protection, and automation remain top concerns for some organizations. However, during 2020 and 2021, cloud computing exploded with the COVID-19 pandemic as more and more organizations moved most of their applications to the cloud. This decision has been motivated by the urgent need for flexibility within a very short time in order to be able to react to changed framework conditions. We will also witness the growth of rapid adoption in 2022. According to predictions from Gartner, global spending on cloud services is expected to reach over $482 billion in 2022, up from $313 billion in 2020. This shows how cloud technologies are one of the most important pillars of modern IT infrastructure today and will continue to gain importance in the future.

 

For very different reasons, companies decide to migrate their digital business processes to the cloud. According to the Flexera 2021 State of the Cloud Report, performance and scalability are among the main reasons, alongside easier data access and management and lower overall costs. Accordingly, 61% of businesses migrated their workloads to the cloud in 2020, from which 92 percent of enterprises have a multi-cloud strategy; 80 percent have a hybrid cloud strategy. But regardless of where they are at in their journey  towards the cloud, organizations should keep an eye on the following trends:

 

The public cloud is gaining in importance within hybrid scenarios

Moving to the cloud is complicated and deciding which cloud type is the right one for an organization depends on multiple factors, such as the requirements for computing, storage, and services. Each cloud model has its own advantages and disadvantages that companies have to weigh up. Hybrid cloud scenarios (i.e. an environment made up of on-premises and a cloud) have established themselves as the de-facto standard for cloud deployment – according to the Flexera study, public cloud adoption continues to accelerate as 36 percent of those surveyed already spend more than $12 million per year on public clouds and 55 percent of enterprise workloads are expected to be in a public cloud within twelve months. The reasons given for this were data protection-relevant applications and business-critical processes.

 

Real-time analytics and IoT are on the rise

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Companies make use of a number of cloud services to solve the different business requirements. Analytics and infrastructure services still comes first, followed by data for machine learning (ML) and artificial intelligence (AI). The Global Connected Device Analytics Market is estimated to be USD 14.9 Bn by the end of 2021 and is expected to reach USD 40.7 Bn by 2026, growing at a CAGR of 22.3%. This huge need for connected devices in the different industries has been motivated due to remote monitoring of employees working from home during the Covid-19 crisis. Additionally, IoT analytics is becoming a core investment strategy for various organizations to leverage analytics as a core competency to deliver better outcomes and to drive differentiation for their product and service offerings. The more intensively and consistently companies use the cloud, the more benefits they can derive from it. This trend will continue in the next year and more advanced use cases such as ML / AI analyses, IoT, but also stream processing will continue to increase.

 

Companies are increasingly lacking cloud skills

As businesses rapidly transition their processes and data over to the cloud, the demand for digital experts is increasing but the skill gap in this area can make it an unrealistic goal for some companies. There is a huge skills gap in cloud computing, both within organizations’ current workforce and in the hiring pool and the situation will worsen in the near future. Organizations are facing the issue of finding skilled IT professionals to cover core missions with critical skill sets to be able to support their business objectives. They need specialist knowledge in handling and managing huge amounts of data in the cloud, as well as building a holistic data architecture. Reports show that missing or limited cloud skills is the greatest challenge in connection with cloud migration for almost a quarter of companies (24%). As more and more organizations are pushing their digital transformation, the need for data and cloud architects or cloud DevOps engineers and cloud system administrators is increasing, but it is becoming increasingly difficult to meet them. Its foreseeable companies will concentrate even more on training their existing employees in order to acquire the required cloud skills, while at the same time relying more on user-friendly self-service solutions in the coming years.

 

As said previously, the global spending on cloud services is expected to reach over $482 billion in 2022, up from $313 billion in 2020 – the next coming years will therefore primarily be about getting the maximum benefit from cloud integration. For this purpose, companies should, on the one hand, particularly tackle the development of the required skills and, on the other hand, consider specifically which IT & business requirements they can solve with the help of the cloud. This enables them to take their cloud usage and business to the next level.

 

Sources:

Top Strategic Technology Trends for 2022: Cloud-Native Platforms

Cloud Shift Impacts All IT Markets

Flexera Releases 2021 State of the Cloud Report

Covid19: Evolution of the Digital Transformation within companies

Covid19 Evolution of the Digital Transformation within companies

The corona pandemic is continuously changing the framework for digitization. According to IBM 96% of leaders report that Covid-19 will accelerate their digital transformation by an average of 5.3 years. Another study by Celerity shows that 63% of leaders state that the Covid-19 pandemic prompted them to embrace digital transformation sooner than originally planned. The goal of promoting innovations faster and keeping up with the times is the most important reason for digital transformation for companies.

 

With the adoption of digital solutions, companies have greater resiliency. They can not only streamline their operations but also automate all manual processes in order to generate more revenues. With data driven insights, companies can make decisions faster and adapt or change course at any point. They are also better prepared to fight against cyber threats, also when their employees work remotely. All these advantages give companies a boost for their own digital transformation, but they also have to overcome various hurdles as the transition to a digital company is anything but easy. Limited resources, rigid legacy systems as well as unclear goals and rules – all these things delay IT departments when it comes to innovations.

 

Even tough 30% of organizations will increase innovation and reinvent their business models in order to future-proof their companies, digitization continues to be a major challenge for many companies. Companies’ IT departments are experiencing the greatest change: they are developing into a service provider who, on the one hand, strives to ensure that the IT systems and applications run properly and, on the other hand, acts as a full-service provider of IT-supported business processes. The requirements continue to increase. A total of four hurdles in particular slow down innovative projects.

 

Skill shortage:

According to the KMPG CIO survey, 54% of organizations reported that skill shortages were holding them back from pursuing their transformation goals. In particular, they were lacking expertise in the following areas: Cybersecurity, Technical architecture, Enterprise architecture, Advanced data analytics. Current IT teams are made of few people who have the essential technical skills but don’t have training time to develop the skills. But if your business is suffering from skills shortages, ignoring training is not the right solution – it’s much easier to train existing staff than to hire new employees.

 

 

Legacy systems

Legacy systems, which form the backbone of many enterprises, are holding them back from leveraging new digital technologies and creating new experiences for their customers/partners. Outdated business software consumes a lot of resources in companies. According to Forrester, companies invest 70 to 80 percent of their IT budget in maintaining rigid back-office systems. These systems are difficult to integrate or customize when it comes to supporting new digital initiatives. Slow development methods combined with legacy systems make the problem worse. Outdated networks and servers no longer meet the needs of companies. Taking the right step and modernizing the legacy is the way forward. The IT modernization promises cost savings, efficient management of IT infrastructure, efficient utilization of human capital, better security and risk management, enhanced user experience, and last but not the least, a direct impact on competition.

 

Limited resources

Digital transformation is necessary in order to become more agile, more innovative and more resilient, but often only limited resources are available for converting old processes to more modern tools. Building a business case for such investments can be quite challenging in terms of budget approval. Also, all legacy systems require modernization. Otherwise, they can be exposed to crashes anytime. Therefore, the introduction of new technologies can be introduced in steps, often with a free software test phase.

 

In order to be really successful, that means first and foremost to be economically positive, but also to recognize and use the opportunities of the future as a driver of innovation, a digital roadmap should be planned. Not the hard change, but a targeted and coordinated development in digitization should be the way in which all members involved within a company pull together. Strategic concepts that include optimal resource planning are required here. This means that a networked transfer of knowledge and experience must take place. Using the strengths of individual individuals and combining them with scientific innovations should be the path to productive and efficient profitability. The digital evolution is a permanent further development and with all step forward new opportunities become visible that can be realized through a stable foundation.

 

Sources:

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