The COVID-19 pandemic severely disrupted global supply-chains and led to an increased demand for resiliency and transparency to prepare for future shocks. The crisis made it abundantly clear that businesses need to digitally transform operations to be successful in the new normal and meet evolving consumer demands.
Shifting to the cloud can address the various supply-chain challenges that were exposed during the pandemic and enable businesses to have more agility, visibility, and collaboration across the entire value chain.
Benefits of Shifting to the Cloud
The cloud is an essential tool for businesses as it enables them to gather, store, and analyze a large amount of data at a quicker speed. A study by McKinsey discovered that more than 90% of organizations were utilizing some form of cloud technology. Cloud adoption allows organizations to make better, more informed decisions in real-time and achieve greater efficiency based on data-driven insights. The pandemic accelerated the shift to cloud and Gartner predicted that 85% of organizations would have a cloud-first approach in the next four years.
The conventional supply-chain operates in siloes , uses traditional means of communication and requires manual input of data which makes information sharing across an organization harder. With the cloud, all stakeholders have access to the latest information. The cloud gives greater visibility into each step of the supply-chain and allows executives to take corrective action promptly based on real-time data available on one platform.
Shifting to the cloud also helps businesses reduce costs by eliminating the need for a physical IT infrastructure, minimizing errors and delays through greater visibility, and allowing leaders to make more intelligent decisions quickly.
Additionally, it fosters a more interconnected and flexible supply-chain ecosystem that can adapt and respond more quickly to the changing landscape which can be a challenge with legacy infrastructure in place. A more flexible supply-chain also moves away from the one-size-fits-all approach and enables brands to offer more tailored experiences for consumers.
Migrating to the cloud can also help businesses be more eco-friendly, which is an important factor for consumers when making a purchase. A study by Accenture found that cloud-based solutions can enable organizations to decrease the use of energy and carbon emission output by 30%. As consumer demands change and sustainability becomes a key priority, companies need to adapt.
Cloud technology also encourages businesses to be more innovative and supports them through their transformation journeys. With the cloud, businesses can seamlessly adopt new technologies such as artificial intelligence. A study by McKinsey found that companies that adopted the cloud bought new capabilities to the market 20% to 40% faster. An additional study by IBM of supply-chain executives found that 46% of respondents believed that spending in artificial intelligence, cognitive computing, and cloud applications would rise over the next 3 years.
Barriers & Challenges
Many organizations are not confident about making the shift to the cloud due to certain barriers. In a study by IBM, 47% of businesses had average or low levels of confidence about the move to cloud.
Businesses can be hesitant to migrate to the cloud due to the perceived security risk that comes with the shift. In a survey of business and technology leaders by IBM, 66% cited security and resiliency protection as a key challenge to adopting the cloud. Businesses can overcome this challenge by introducing additional security measures such as encryption, multi-factor authentication, and training their employees in cloud security.
Another concern expressed by leaders is the availability of the right skills. In a study by PwC, 77% of leaders surveyed cited the availability of key skills as an area of concern. Without the right skills, businesses will experience delays in their shift to the cloud. Businesses need employees with cloud skills to support their shift and upskill their talent to facilitate their digital transformations.
Additionally, a survey by Accenture found that 43% of respondents found legacy infrastructure to be a barrier. It can be challenging for larger organizations with outdated legacy systems and a vast amount of data to transfer their data over to more modern solutions.
In order to overcome these challenges and realize the full potential of shifting to the cloud, the entire organization has to be aligned and foster a culture of innovation.
Cloud-technology helps businesses with their transformations, which has become essential to survival today.
Organizations that shift to the cloud will see various benefits including increased efficiency, transparency, and communication across the value-chain. All stakeholders will have access to vital information and insights for decision-making and the ability to take corrective action preemptively. Additionally, companies that take a cloud-first approach will be more innovative and resilient in face of disruptions.
At Triple Tree, our customizable, cloud-based solutions provide can be integrated seamlessly into legacy infrastructure and provide real-time data to streamline processes, increase productivity and optimize performance for apparel and non-apparel brands. Learn more about our smart solutions here.