In Cloud Computing: Advanced Business and IT Strategies to Extract Tangible Value blogger andauthor Philippe Abdoulaye describes how the cloud is changing the competitive environment; it is giving all businesses access to IT and is consequently taking the global economy to an era where the downgrade of IT from competitive differentiator to “must have” asset is catapulting innovation as the must have competitive advantage. This unprecedented fact in the IT realm requires a profound transformation of businesses to help them shift their concerns from IT from IT cost savings to innovation.
Abdoulaye points out a paradox in the way today’s IT leaders approach cloud computing – they stubbornly refuse to see cloud migration as a business transformation; they are still mired in old thinking and are increasingly investing in cloud vendor solution implementations ignoring the people, process and organizational factors thinking the sole infrastructure implementation will magically result in value and competitive advantages.
While cloud solution vendors and the major consulting brands are selling the erroneous idea that cloud infrastructure by itself generates value, stressing the fact that IT is an enabler and value is primarily a matter of process, organization and people performance, Abdoulaye offers two revolutionary tools: The Cloud-Oriented Value Chain and the integrated Cloud Computing Transition Methodology (iCCTM).
The Cloud-Oriented Value Chain represents cloud computing as a two-part service delivery model with on one side the organization’s Operating Model and on the other the Virtual Computing Capability.
The Operating Model is seen as the set of people, processes, organizational configurations and governance capability specifically arranged to enable the cloud benefits and allow businesses acquire substantial competitive advantages such as innovation, focus on core competency, and agility while the Virtual Computing Capability represents the cloud infrastructure and associated SaaS, PaaS and IaaS services.
The integrated Cloud Computing Transition Methodology (iCCTM), is a complete cloud transformation framework that leverages Agile Mechanisms to guide and support the end-to-end business transformation from the Cloud Strategy and Cloud Services Catalog Definition to the Transformation of Traditional IT Infrastructure intoSaaS, PaaS, and IaaS services.
The message of “Cloud Computing: Advanced Business and IT Strategies to Extract Tangible Value” is, getting rid of the old way of thinking or changing the way we do IT does not mean making something new out of something old; it concretely means considering business operating models as the central piece of the business competitiveness.
This best selling work and the other article of the author worth the reading; theysubstantiates the message conveyed by visionaries such as Erik Brynjolfsson (The second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies) and Jeremy Rifkin (The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism): It is Urgent for CIOs to Get Rid of the Old Way of Thinking IT Contribution to Business Value.
Philippe Abdoulaye is the author of several high value posts. He is a former Accenture IT Strategy and Transformation Subject Matter Expert. He has advised IT leaders of companies as prestigious as McKinsey & Company, Credit Suisse, American Express and Bristol-Myers.
Other Philippe Abdoulaye’s works include:
- Why Implementing Cloud as a Service Delivery Model Will Result in Tangible Value
- Cloud Computing: How to Take Advantage of it to Make Your IT Organization Agile