There are very few industries that can benefit from adopting a cloud-based technology environment like the services industry. The shift to the cloud has occurred across all facets of our economy—but project, rather than product-based organizations, experience a greater cost-benefit from moving operations and data to the cloud.
Services-centric organizations — notably management consultants, IT services firms, professional service providers, and marketing agencies — have different functional needs to those of product-centric or asset-intensive organizations. They are unique, and incredibly complex to manage. There are also many dynamics to these businesses that change daily.
Pressures Services (Project-Based) Organizations Face Today
1. Shift to short-term, project-based work.
As more service organizations take on projects with shorter timelines, operations become increasingly complicated as hundreds of projects could be occurring simultaneously. It is nearly impossible to keep up with the new pace of projects without a cloud environment at your services organization.
2. Facilitating collaboration with remote, distributed staff, subcontractors, and clients.
Work is increasingly being broken into the highly specialized skills and expertise required to complete it. Not only does this spur greater globalization of resources (workers are more dispersed) but it requires service organizations to adopt technologies that allow for communication and collaboration across any boundaries.
3. Increasing client expectations of greater speed, quality and transparency.
Service providers are being required to show results faster and with greater transparency. In today’s economy, providers must continually prove and reinforce their value. Greater information access has created a more informed buyer, too. Buyers have come to expect a certain ease of use when using tech applications. It is impossible to keep up with client expectations without the cloud.
4. Increasing competition.
Competition amongst businesses are at an all time high with the fast pace of technological change. The most successful organizations are beginning to leverage technology as a way of remaining ahead during this highly competitive time. Cloud applications are a quick way for organizations to get a step ahead, as they can be implemented quickly without too must IT investment.
Services organizations need to adopt or risk getting left behind in the face of the digital revolution. Within the next year Gartner predicts that 3/4 of all services-centric companies will move the majority of their applications to the cloud, and this will be the norm within five years. This migration presents a myriad of benefits for services organizations to drive business transformation and growth.
Benefits of the Cloud on Services (Project-Based) Organizations
More effectively manage projects, from planning and bidding to staffing and billing while maintaining the same level of security that organizations had in their cloud ERP solution.
Services organizations today are in a constant state of growth, with fluctuating bandwidth demands. With cloud-based applications, you can easily scale up capacity with increased needs.
Scale and grow with your ERP -- allowing you to swap out solutions as your needs change. Because you are dealing with more technology than ever before, being able to grow your ERP capabilities can help you scale in a repeatable way, which allows you to future proof your services business technology investments.
4. Enhanced Collaboration with Distributed Teams.
Services organizations are transforming their processes and structures to align with a global, networked landscape. It is a requirement that work be delivered in open and collaborative environments, with large groups of people from both inside and outside the organization. On any given project a firm will most likely have internal talent, external service providers, specialists, and clients, from around the world.
5. A Seamless, Connected Information Environment.
By hosting their technology platforms ERP on the cloud, services are able to focus on additional types of connections for your services business such as, CRM, GL, HCM. We call this the “best of breed approach”
6. Access to Real-Time Data.
Due to dynamics that change daily in a service business, if a firm is not looking at data in real-time, they might as well be looking at last year’s results. It’s that simple. There are too many factors that are impacting profitability - every single day. Real-time performance analysis creates nimble teams that can pivot easily as projects evolve to maintain profitability through the entire delivery lifecycle.