In the past few years, cloud computing adoption has gained momentum, especially in India. Commercial benefits aside, support from the government helped in its exponential growth. A survey conducted by leading experts in 2022 shows that four out of five companies are looking to increase their cloud budgets in the next 12 months.
The COVID-19 pandemic has played a huge role in driving cloud adoption. The report reveals that 78% of IT companies and 53% of healthcare and BFSI companies have increased their reliance on the cloud since the start of the pandemic.
According to another industry report, up to 71% of CPG brands are mature cloud users or in advanced stages of cloud adoption compared to 68% across all other industries. CPG (consumer packaged goods) companies have been in very advanced stages of cloud adoption driving up to 108 percent ROI on such initiatives.
Statistics show that Indian BFSI companies are able to embrace the cloud after initial hesitation, due to the sensitivity of the data they hold, and the Hybrid Cloud model is expected to grow by 39 percent in the financial services sector in the next five years. So, while the CPG industry is leading the way in cloud adoption, the BFSI segment shows a lot of growth potential.
Embracing the cloud as a response to the pandemic
The retail sector, of which the CPG industry is a part, has been among those hardest hit by the pandemic, with manufacturing and supply chain deterioration. Unsurprisingly, he was also one of the fastest to adapt to the ever-evolving situation.
Benefits of the cloud in the CPG industry
1. Deeper customer interaction at a lower cost
The economics of customer relationships are at the heart of CPG’s business. Cloud computing has made it possible for brands to target customers with a personalized marketing basis for their buying patterns and preferences. Even the employee experience can be transformed using the cloud. For example, a self-service portal with an integrated chatbot that allows for personalized searches, consolidates queries and cases against IT, HR, workplace, finance and other departments Enhance employee experience.
2. Better supply chains and ultimate delivery
Cloud computing has also made it possible to identify and solve potential problems in supply chains. Last mile delivery, a major problem for consumer goods companies, is being solved through cloud computing. AI-powered solutions help small-town shopkeepers connect directly with FMCG brands without having to rely on third-party wholesalers.
3. Enabled ROI growth with relatively smaller IT investment
Cloud solutions enable companies to expand into new markets with more flexibility. Cloud computing enables efficient deployment of IT solutions at scale, so companies can achieve business goals with smaller initial investments in IT.
4. Shorter innovation cycles
Cloud computing also increases accessibility. Therefore, employees outside of IT teams can devise and build solutions customized to their specific needs. Take for example one of our customers, an American multinational food, snack and beverage company, that has implemented a cloud-based platform to transform their IT service management. The platform eliminated the friction between operations, technology and data by leveraging the enterprise reporting capabilities available in the solution. It has also reduced manual effort at scale, thus driving innovation and efficiency in network operations at scale.
The need for a BFSI to adopt the cloud
There is a lot the BFSI sector can learn from the CPG industry in cloud adoption. Banks must realize that the cloud is not just a technology, but a way to access the latest software applications over the Internet. Banks can use it for a wide variety of purposes – from customer relationship management and data analysis to fraud detection and more.
Benefits of Cloud at BFSI
1. Enhanced security
Cloud technology is designed for a data-centric universe. Therefore, service providers tend to be on their guard when it comes to discovering security vulnerabilities, which makes cloud computing more secure than most on-premises services.
2. Faster processing speeds
Legacy processing methods tend to store data in silos, which limits the way the data can be used. Cloud computing enables the centralization of data capture, storage, and interpretation, making it possible for banks to access data-driven insights faster, richer, and more accurate, to drive performance.
3. Better customer insights
Data-driven insights can enable banks to provide personalized financial services and gain an edge over emerging fintech companies. The cloud-based platform provides anytime, anywhere access to real-time data that can transform customer experience. For example, one of our customers, a leading regional bank in the US, was using a local customer service tool that was causing delays in resolving customer complaints due to a lack of integration with their email system. Moving to a cloud-based complaint management system helped them automate their complaint management system.
4. Lower costs
Cloud technology eliminates the costs of on-premises infrastructure, maintenance, security updates, etc., thus reducing costs. It is also possible to reduce or increase levels of service delivery, thus optimizing costs.
The benefits of cloud infrastructure are too many to list, whether for CPG or BFSI companies. But as the world embraces data like never before, cloud computing will not only be a good choice, but an urgent need. The companies that will thrive are the ones that embrace the future before it comes.
The article was written by Arvind Raman, Global Head – Service Management, Infosys