Information technology undeniably bolsters organisations across various sectors, playing a pivotal role from product design to execution. For example, manufacturing engineers rely on IT for tasks such as modelling and simulations, focusing on key areas like engine performance and safety. Operationally, IT enhances safety measures, process efficiency, and overall effectiveness. Additionally, all products or services are supported by IT systems, like connected cars. Today, a robust IT and digital strategy is crucial for organisational success.
CXOs worry about the demonstrable value of their IT investments. Gartner emphasises the need for a persuasive IT value narrative to get business stakeholders on board with technology initiatives. The evolving impact of cloud services is shifting IT from a cost centre to a vital driver of business and innovation across R&D, engineering, production, and beyond, addressing all stakeholder needs.
Gartner reports companies were tapping into cloud computing as a disruptive force in 2023, and by 2028, most will perceive cloud usage as a business imperative.
The undeniable benefits of the cloud for businesses
While cost savings are the most quoted benefit of the cloud, there is more to the value of the cloud.
Revolutionary force: Organisations incorporating cloud technology as a strategic capability are creating new growth engines, leveraging high compute capacity, on-demand scalability, and a rich set of pre-built services in data, AI, and more.
For example, geoscientists can use cloud computing to analyse vast seismic and subsurface data to make informed decisions about oil extraction, thus minimising ecological effects. The cloud also allows them to access precise computing power when needed, which supports higher productivity at optimal costs and in a timely manner. The capability of simulation and modelling is a business enabler that extends to every industry segment, including manufacturing, pharmaceuticals, utilities, and more.
For instance, the aircraft manufacturer can use the cloud for their high-performance computing workloads, like the analysis of flight trial data, which accelerates analysis time and aids in the faster development of safe, high-performing aircraft.
Operational efficiency: For most industries, operational efficiency has become the focal point of business transformation for growth and profitability, and the cloud emerges as a linchpin in this paradigm shift. For instance, manufacturers can produce more when they optimise the cycle time in a manufacturing plant, which includes time to change tools, enabling the availability of parts at workstations, and time taken to move work-in-progress products from one station to another. This helps the manufacturer produce more with the existing assembly line. The production manager gains real-time visibility and high-speed data processing by leveraging the capabilities to sense, analyse, and control through IoT, analytics, and industrial automation from the cloud. This empowers him or her to not only swiftly analyse operational data but also take immediate actions. Additionally, the building of a digital twin elevates the capabilities in shop floor planning, safe training of operators, and effective execution of scenario analysis.
Whether it’s optimising a factory assembly line or ensuring the stability of power transmission in a utility company, cloud IoT, real-time analytics, and digital twins prove instrumental, facilitating quicker time-to-action and more effective interventions for improved safety and operational efficiency. Enterprises can become more efficient in handling fluctuating business conditions, giving them profitable growth.
Productivity, cost efficiency, and growth: The integration of analytics, AI, and cloud computing across all industry sectors in design, engineering, production, and process control boosts productivity by augmenting human capabilities for highly cognitive work through automation and reducing human interventions in others. This helps get more out of capital, both assets and people, contributing to a high-growth organisation with a reduced cost of running the business. To stay competitive in the tech-driven market, organisations constantly seek ways to innovate.
In conclusion, when organisations extend cloud adoption beyond standard enterprise applications to engineering, production, and operations, they can innovate faster, enhance product and service quality, and improve workplace safety. Fully embracing cloud technology allows organisations to swiftly respond to changes and proactively shape their business and operational strategies, promoting agility and competitiveness in a fluctuating market.