September 20, 2024
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What Cloud Mindset is And Why it Matters for IT Professionals in Professional Services

We live in times where stability is gradually disappearing and uncertainty is becoming the norm. Therefore, today a “resilient business” is the goal of every forward-thinking owner and executive, which can be achieved only through constant development, the implementation of new technologies, and coordinated work of a motivated team. The key to success now lies in the ability to quickly adapt and respond to changes that continuously emerge in almost every area of life.

It’s easy to forget how, in IT or consulting companies, employees were once tied to personal computers and local networks. The initial waves of automation have passed. Businesses have implemented accounting software, then ERP and CRM of the first generations, modern systems, and mobile applications that are now used in every workplace by companies whose strategic goals focus on growth. While the implementation and deployment of traditional business systems are quite predictable, they are also time-consuming. Installing, updating, and commissioning business applications requires large-scale project planning and resources, including time, personnel, and budgets.

Today, we are at a stage where every company, to be successful, needs a cloud-oriented business strategy and flexible solutions that do not burden the workflow with complex implementation, but, on the contrary, simplify and stimulate the adaptability of the company to internal and external challenges.

It is now clear that at the current pace of technological development, only in the cloud can the potential of the latest innovations, such as artificial intelligence, and compliance with the norms of sustainable development be used. Only thanks to cloud technologies can a company keep up with the pace of business, competitors and the changing demands and challenges it faces every day, and only in the cloud can one predict and identify risks and opportunities in order to react in time and make the right decision.

But to get all these benefits from Cloud ERP implementation, you need to adopt what is called a cloud mindset, a change in approach and perspective that embraces the unique characteristics and benefits of cloud solutions. This is essential to drive digital transformation and maximize the value of cloud investments for IT and business leaders. Companies need to realize that cloud software is different from on-premises software, so the mindset and methodology used to implement a cloud solution will be different.

Important components of cloud mindset and advices from SAP experts

  • Embrace the “Fit-to-standard” approach: Organizations adopt a willingness to align their business processes with the standard best practices provided by the cloud ERP solution, rather than extensively customizing the system. This approach leverages pre-configured processes and industry best practices to accelerate implementation and reduce complexity.
  • Focus on Standardization over customization: There’s a preference for using standard functionalities and configurations provided by the cloud ERP, minimizing custom development to maintain system stability and reduce total cost of ownership.
  • Keep up with the pace of innovation: The cloud mindset emphasizes quicker implementation cycles and seeing these innovations as an opportunity to differentiate yourself from the competition and keep up with the ever-changing ESG regulations. This allows businesses to adapt more rapidly to market changes and drive digital innovation.
  • Embrace Continuous improvement: With cloud ERPs, there’s a focus on regular updates and enhancements. Organizations need to be prepared for more frequent upgrades and be willing to continuously evaluate and adopt new features as they become available.
  • Prioritize Change Management: With less emphasis on technical customizations, the cloud mindset shifts focus on effective change management and user adoption.
  • Relinquish IT responsibility: Cloud ERP implementations often involve handing over significant IT responsibilities to the vendor. This requires a shift in the IT governance model, with less reliance on large internal IT teams for system maintenance and upgrades.
  • Modernize integration and extension approaches: Cloud implementations prioritize the use of modern integration technologies and extension methods, such as APIs and side-by-side extensions, rather than traditional customizations.
  • Collaboration is good: Implementing a cloud ERP with the right mindset involves close collaboration between the client, the ERP vendor, and implementation partners to ensure alignment with the cloud operational model.

Benefits of Adopting a Cloud Mindset

Adopting a cloud mindset for ERP systems offers several key benefits:

  • Faster implementation and innovation: Cloud ERP enables quicker implementation cycles and more rapid adaptation to market changes, driving digital innovation.
  • Move from CapEx to OpEx: Cloud ERP eliminates upfront hardware and software costs, while reducing ongoing IT expenses for upgrades and maintenance.
  • Reduced IT costs: Cloud ERP implementations involve handing over significant IT responsibilities to the vendor, shifting the IT governance model, and reducing reliance on large internal IT teams.
  • Enhanced security: Cloud vendors often provide robust security measures, potentially offering stronger protection than on-premise solutions.
  • Improved accessibility: Cloud ERP systems allow secure access to data and functionality from anywhere with an internet connection, enhancing mobility and collaboration.
  • Scale your business system as your business grows: Cloud solutions offer easy scalability to accommodate business growth without significant capital expenses.
  • Real-time insights: Integrated, real-time analytics enhance decision-making and resource utilization across the organization.
  • Integration of intelligent technologies: Modern cloud ERP solutions often incorporate AI, machine learning, and IoT to enhance productivity and operational efficiency.

By adopting this cloud mindset, organizations can better leverage the benefits of cloud ERP systems, such as faster implementation times, lower maintenance efforts, regular feature updates, and improved scalability. This approach allows businesses to focus more on innovation and less on maintaining complex, customized systems.

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What Cloud Mindset is And Why it Matters for IT Professionals in Professional Services

We live in times where stability is gradually disappearing and uncertainty is becoming the norm. Therefore, today a “resilient business” is the goal of every forward-thinking owner and executive, which can be achieved only through constant development, the implementation of new technologies, and coordinated work of a motivated team. The key to success now lies […]

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