3 Easy Steps to the Cloud
Although “the cloud” is here to stay as more and more organizations migrate to it, the reality is that most aren’t really yet prepared to go there in a strategic, efficient and cost-effective way. But our three easy steps will help your organization harness and optimize the true power of the cloud.
Step 1: Understand the basics.
Research1 by SilkRoad1 demonstrates convincingly that the cloud isn’t just a fad. In fact, statistics show that 46 percent of organizations are currently using cloud-based HRMS. An increasingly social, mobile-enabled, “virtual” workforce is driving demand for cloud-based HR solutions.
However, cloud computing is harder and more expensive than we thought2. Among the contributing factors to the high transformational costs are the changes to existing business and IT architecture that are needed to leverage cloud-based platforms. Many just don’t see those costs coming.
Indeed, the hype has led people to believe that all sorts of IT problems could be solved simply by moving core processes and data to the public cloud. All too often though, businesses do not thoroughly considerer topics like regulatory compliance, legacy applications, bandwidth management, and provider dependency.3
There are also plenty of myths surrounding the cloud, e.g. that “Cost is the biggest benefit”4,5 , or that “There is only one way to do cloud computing.”6
Fortunately for HCM, the choice is easy because SaaS, despite its own set of myths7, is the most relevant option of the cloud solutions.8 It minimizes integration and support issues, while remaining scalable with little upfront IT investment—and providing access to fully fledged HCM suites. Analysis9 related to HCM software confirms this trend: SaaS is gradually increasing its share of the pie over on-premise solutions.
Step 2 – Do your homework.
A recent KPMG International study leads to the conclusion that, “The reality is that most enterprises are not ready for the cloud. They still have inefficient security approaches, data scattered everywhere, poorly designed processes, as well as aging infrastructures.”10
But there are concrete actions organizations can—and should—take to prepare. This same survey11 suggests that, “Business process redesign must occur in tandem with cloud adoption if organizations hope to achieve the full potential of their cloud investments.”
In other words, KPMG advises organizations to “Complete an HR ‘health check.’ Identify areas within your human resources department that are inefficient and too expensive that would benefit from being in the cloud.”
When considering whether to move fully to the cloud or adopt the much-favored mix,12 the idea of a simple transition, as in the “lift and shift model” that is more typical for IT tools, is unlikely to be appropriate for HR applications. It is therefore suggested to proceed with a more transformational approach to both the processes and the current application’s architecture, in view of well integrated end-to-end processes.
Step 3 – Find the right SME.
Know that expert assistance is at your fingertips. In fact, this may be the easiest of the three steps. NGA offers a proprietary HR Cloud Readiness Assessment to guide HCM organizations in doing their homework and creating organization-wide readiness for new solutions.
Based on a predefined methodology, organizations will get insight and transparency in terms of where they are on the cloud ladder. NGA’s skilled consultants will also develop a list of recommendations for your next steps on the cloud journey.
Stay tuned for more details in the next blog that will focus on how you can create transparency in approaching a cloud project for your organization.
- Rudi Dutli
2 Cloud-computing is-harder and more expensive (http://pro.gigaom.com/blog/why-cloud-computing-is-harder-and-more-expens...)
3 8 must-consider items (http://webobjects.cdw.com/webobjects/media/pdf/solutions/cloud-computing...)
4 Debunking six myths (http://www.bmc.com/solutions/cloud-computing/viewpoint/debunking-six-myt...)
5 Myth 4—Cloud computing is cheap (http://blog.virtual.com/2010/6-myths-of-cloud-computing-number-4-and-5)
6 6 MYTHS of Cloud Computing (http://blog.virtual.com/2010/6-myths-of-cloud-computing-number-1)
8 Five HR technology trends for 2013 (http://searchfinancialapplications.techtarget.com/feature/Five-HR-techno...)
10 Cloud-computing is-harder and more expensive (http://pro.gigaom.com/blog/why-cloud-computing-is-harder-and-more-expens...)