Read more about how you can increase your competitiveness with the cloud History tends to, if not repeat itself, at least return with so many similarities that the pattern after a while begins to be recognized. For those who look closely, that is to say. We can laugh at it today, but when the http protocol and html were created just over 30 years ago, when the web was born, very few saw its potential, says Mattias Lewrén.– Company managements and boards waved it off as a technology issue, something that the data department had to deal with. Maybe you could use the technology to send messages, but it would not have any effect on the business itself.Mattias Lewrén, CEO of Accenture. This did not happen, to say the least, and very often when Mattias Lewrén meets those who were in leading positions at the time, there is one thing they have in common: They regret that they did not personally get into what the new technology actually meant. They wish they had spent more time themselves and with their management teams understanding what business opportunities the internet meant from the start. Because it is a real understatement to say that many established companies lost great value. And even though both Swedish companies and the public sector have worked hard to digitize and catch up, they left in the 90s and 00s de facto the game plan is open for various upstarts and tech-savvy innovators to take the business opportunities you yourself did not even see. There is probably not an industry that has not been transformed due to the web. It is the companies that were new then, such as Paypal and Booking.com, that have managed to take advantage of a lot of the value that the web created.
Today, it is easy to be hindsighted, even laughing at the companies that most saw the internet as an electronic postilion. The only problem is that right now it might be happening again. But this time it’s the cloud it’s about. It’s obviously not one hundred percent the same thing, but I see clear parallels. Now when I ask company management what they do with the cloud, they answer that they let the IT department close down their old data center so that they get variable instead of fixed IT costs. This is fine, but then you again miss all the business opportunities that the cloud offers, which can completely revolutionize industries. For today, there are countless examples of companies that have found new innovative ways of doing business through the opportunities the cloud provides. An example is the insurance company Root Insurance, which in addition to using traditional demographic data has built a solution in the cloud where, thanks to individual data, they can generate completely personal-specific premiums for car insurance.For already today there are countless examples of companies that have found new innovative ways of doing business through the opportunities the cloud provides. An example is the insurance company Root Insurance, which in addition to using traditional demographic data has built a solution in the cloud where, thanks to individual data, they can generate completely personal-specific premiums for car insurance. Policyholders can download their app and drive around with their car for a while with the app on. Thanks to the computing power available in the cloud, they can monitor how you drive, brake, accelerate and more, and then they calculate a premium proposal based on your particular driving. This leads to a better customer experience and a unique offer.
Mattias Lewrén lists five signs of why the cloud has the potential to be as revolutionary as the web:
In 2020, $ 250 billion was spent, globally, on purchasing cloud services. This corresponds to 50 percent of Sweden’s GDP. My guess is that when we get the numbers for 2021, it will have grown 30-40 percent. Cloud services have simply become a gigantic industry incredibly fast.2. The three giants Amazon, Google and Microsoft are investing huge sums in their clouds. Last year, they together invested over $ 50 billion in developing new cloud services, ie ten times Sweden’s defense budget, which makes it incredibly fast to develop new smart and useful services.3. Four things are needed for new technology to really make an impact: it must be cheaper, more flexible, more secure and greener the cloud meets all those criteria.4. The cloud makes all development faster because there is already so much service, data and infrastructure in place. Companies that use clouds do not have to spend time developing their own tools, but can devote themselves to their own business development.5. Powerful tools for data analysis, AI, machine learning and more are built into the platform. Thanks to the huge investments, they are much better than what individual companies can produce themselves, which means that companies that use the cloud get off to a flying start.
Endless opportunities for good business
This is not limited to the insurance industry. The article “The Cloud First CEO” from Accenture lists companies after companies in industry after industry that have found new business opportunities thanks to the services and opportunities that already exist via the cloud. I would say that it is time for the CEO and management in quite a few companies to properly familiarize themselves with the possibilities with the cloud, so that they simply do not miss the train. Instead of seeing the cloud as a way to save IT costs, they need to see it as a basis for new business opportunities. And those opportunities are enormous.“Instead of seeing the cloud as a way to save IT costs, they need to see it as a basis for new business opportunities,” says Mattias Lewrén. larger investments in cloud services. I would say that the dissatisfaction is largely due to the fact that companies have simply started at the wrong end. If you tell your IT manager to move the data storage to the cloud, then they do. Then the management asks after a while how it went, and gets the answer that well then, we have saved some money. It has not been a disaster, but it has not been super good either, because you have had a too narrow angle of approach. What should you do then? According to Mattias Lewrén, the answer is simple: business leaders need to realize that there is a lot to learn about the cloud, and endless opportunities for good business. But, they have to do their homework to be able to fully leverage the potential. It is on several levels eerily similar to the 90s. If today’s CEOs do not have to make the same mistakes again, they will probably have to sit in the school desk. They can not leave it to the IT department. The cloud is an incredibly powerful tool, but if you want to be able to renew yourself with the help of it, the management must understand how it works. It may not be exactly as pervasive as the web, we do not know yet, but there is quite a lot that points to it, and I think it would be a shame to take a chance. Read more about how you can increase your competitiveness with the cloud