Cloud computing is helping businesses to vastly improve their internal capabilities. A 2012 study by IBM found that more than half of the respondents saw the value of cloud computing as opening new channels for delivery and marketing, as well as for developing new revenue streams. Moreover, almost half of those polled had plans to use cloud as a tool for business model innovation over the next three years.
Cloud computing is seen as a means for achieving competitive advantage and for creating new and enhancing existing customer value propositions.
By utilizing cloud computing, businesses can improve their performance through six game-changing aspects:
- Flexible costs: Businesses can control costs and plan them more efficiently, thus moving from fixed to variable costs. They can choose the pricing model and can pay when this is needed, in the way they prefer.
- Business scalability: Cloud computing enables businesses to grow their capabilities without any restrictions and without threatening their budgets.
- Adaptability to changing markets: Because of the way it reduces the time needed for business processes, companies can use cloud services to experiment and rapidly decide what works well under specific conditions.
- Reduced complexity: On the one hand, cloud capabilities enable businesses to build on product sophistication, while on the other hand, it significantly simplifies interaction with users and consumers.
- Context-based variation: Cloud computing allows businesses to remain relevant because they can provide solutions that are fully user-centered.
- Improved connectivity: By adopting cloud, businesses can rely on developing new networks to create new businesses.
In conclusion, cloud computing can provide businesses with the most effective means to improve customer service, expand product proposition and drive innovation.