New Economy and how to win


New economic paradigm

In the new economic paradigm business need to do much more with much less.

One way is to simplify and build or integrate a flexible , fully automated business operation platform to effortlessly manage business operation through Cloud sourcing ( sourcing complete solutions to run your business from the public cloud.  ) and  Crowd sourcing  and / or Expert sourcing . ( read more about Expert sourcing : Wikipedia , Innova global )

Cloud computing is not a new technology phenomenon but cloud sourcing is a business opportunity and an accelerator for business crowd and expert sourcing and global collaboration.

The cloud is an environment for creating ways of doing business that are radically different from traditional pyramid ERP-based processes. The age of command-and-control in business technology is over. You empower the knowledge worker through collaboration and information sharing  ( Crowd and  expert sourcing ) .

How to adopt cloud computing ?

  1. Put away the slide decks on virtualization (  The ability to increase computing efficiency ) and infrastructure
  2. Start thinking about:
  3. Who you should be working with
  4. How you should be work with them
  5. How can support that better than ever before
  6. AS You assemble , integrated and hybrid your cloud ( business work horse - Business engine ) be careful and make sure you get a high quality engine like BMW or Hyundai and not a Yugo .

“It takes time to get cloud sourcing right. 
Experience matters
We have been fine-tuning our cloud strategy in the US since 2007 making us a compelling choice for businesses and enterprise customers.”

Business processes should be the core element in the cloud, not documents, back up  or e-mail.

Everything in the cloud should grow out of an inherently collaborative business process. You have to think beyond the internal business processes in your company to linking your :
  1. Customers' customers
  2. Suppliers' suppliers, and
  3. Draw them all together in a common end-to-end business process.

You can create these relationships much faster and less costly  now, but few people are taking advantage of it.

Most of us are still very much in the ERP paradigm, which can be limiting. The cloud allows everyone to focus on their own processes, share them with others, and add some individual elements to their own processes and optimize them.

Some of these same promises about end-to-end business processes were made about ERP when it was new.

What went wrong?

ERP is not a flat structure , In the ERP world, everything is data-centric. Data is king, and business processes became embedded in data silos. Many big companies have created stovepipes that are isolated from each other, with business processes stored in the data. The vendor's best practices are then overlaid on the processes. Those stovepipes are still isolated, trapped on premise. That inhibits innovation.

What is your vision of making the cloud work for business?
  1. Not everything has to be on the cloud.
  2. The optimal situation is a combination- or so called Hybrid cloud -a kind of composition between legacy systems and the optimized business process from the business and its partners, and it lives in the cloud.

What is hybrid cloud ?

A hybrid cloud is a cloud computing environment in which an organization provides and manages some resources in-house and has others provided externally. For example, an organization might use a public cloud service, such as Amazon's Elastic Compute Cloud (EC2) for general computing but store customer data within its own data center. Read more

What are the benefits of getting cloud  right?

Dramatic improvements in business processes, reduction in IT costs, and a radical expansion of partners to help you run your business. Applications in the cloud cost less than 10% of an on-premises application. That means double-digit-percentage cost savings, and, more importantly, a boost to the value stream. Lead time for product creation can be reduced from 60 days to one or two hours. It's already happening. Instead of building a car in six weeks, we can do it in a day.

What stands in the way of this transformation?

First of all, the role of CIO sometimes seems afraid of its own shadow. The CIO should become more of a business leader. Maybe we should change the title Chief Information Officer to Chief Process Officer (CPO).

CIOs with guts are crucial to change. The CEO is too isolated and unaware of the development of these trends, but now the CIO, in the new role of a CPO, could be a tremendous asset to the CEO, providing leadership for changing the company and improving business processes. The value is in aligning IT and business, and the CPO is much more on the business side, not just on the IT side.

Too much attention is focused on technology innovation and not enough on business innovation and service innovation . When that happens, we add functionality, but also complexity. The technology innovations with real impact are those that reduce complexity.

IT will be democratized ( Bringing enterprise scale infrastructure to small and medium businesses ) in the same way Henry Ford democratized the car. Currently, fully functional IT is only for Fortune 1000 companies with a big budget. In the near future, the benefits of IT will be available for everyone. Small and medium-size enterprises are, with the new technology wave of a business operations platform, able to connect their supply chain much faster than Fortune 1000 companies can. Agility is the mantra for today's smart companies.

Social media and cloud computing are exciting because they foreshadow this future.

Apply Cloud sourcing, Crowd sourcing and Expert sourcing to warp out your business in global cyberspace