Enterprise digital transformation with cloud

• Commitment from top management is needed along with cultural changes
• Enterprises turning to cloud 2.0 with its user-based focus

IDC forecasts that  in 2018 more than 60% of enterprise IT organisations will have committed to multi-cloud architecture, driving up the rate and pace of change in IT organisations.

“We are seeing some changes and behaviour in cloud usage within the digital transformation process. The trend of cloud in the market has changed from cloud 1.0 to cloud 2.0,” IDC Indonesia head of consulting department Mevira Munindra (pic) tells Digital News Asia.

Mevira explains that cloud 1.0 focuses on technology while cloud 2.0 has a user-based focus with solutions coming from the cloud.

Through IDC’s Asia/Pacific Enterprise Cloud Conference 2017 in Indonesia, chief information officers (CIOs) from enterprises gathered knowledge about digital transformation using cloud.

“A couple of years ago, a mobile-first strategy was adopted by most companies. But in the next one or two years, we expect to see enterprises to adopting a cloud-first strategy.

“We hope that this event will provide new insights on what they can expect in terms how cloud could be useful in digital transformation landscape of the future,” Mevira adds.

According to Mevira, enterprises in the future could enable hybrid cloud technology and multi-cloud architecture which allow a company to have more than one cloud application in order to provide the best solutions.

PT Bank Rakyat Indonesia (BRI) system architect I Gede Kukuh Adi Perdana tells DNA that BRI is preparing to adopt cloud into their system to provide better banking services.

“We want to implement cloud on our system by this year so our customer will be able to get more stabilised banking services,” he adds.

When asked about challenges, he says that for a big company like BRI, it is hard to get full engagement from all departments and a commitment from top management. He also said that the team and top management have to share the same perspective on digital transformation.

Coming from the catering and food service sector, PT Prasmanindo Boga Utama IT manager Jazzy Suryo says that his company has been utilising cloud for two years and it has helped them in increasing productivity.

“To overcome the challenges, we upgraded our internet for better connectivity and we scouted for cloud providers that could offer cost-effective services.”

Key to success in digital transformation

Mevira believes that not only IT department drive digital transformation in a company. All other business units must cooperate as well.

“We are looking at the potential of enabling all business units in a company to move into digital transformation and that’s become a key to change. As an example, when the claims business unit of an insurance company is looking for solutions based on cloud, they will need the cooperation of the IT department.”

When it comes to challenges for enterprises in the digital transformation process, Mevira feels that there is no exact strategy or roadmap for a company to modernise its IT infrastructure. The collaboration between business and IT units which enable the success rate digital transformation is low. There is also a lack of skilled resources and companies often hold on to their traditional culture.

Mevira says that in order to venture on the digital transformation process, a company has to receive the ‘blessing’ of top management. If there is no approval from the top management, it will be difficult to digitally transform.

Once a plan of transformation is set, it is crucial to create a special team to execute the plan.

Since digital transformation is not only a tool but a business model, the culture of the company has to align with the process. The readiness of a company to transform is one key requirement.

“Digital transformation will take time and involve a long process. They have to make sure that cloud or any technology that they are implementing can actually deliver what they need and a company must get the right strategy to optimise usage,” concludes Mevira.

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