Over the past few years, the adoption of cloud computing has been gaining momentum, especially in India. Along with business benefits, government support has contributed to its exponential growth. A 2022 survey by leading experts reveals that four out of five companies are looking to increase their cloud budgets over the next 12 months.
The COVID-19 pandemic has played a significant role in 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 Packed Goods) companies in very advanced stages of cloud adoption have generated returns on investment of up to 108% from these initiatives.
Statistics indicate that Indian BFSI companies are increasingly willing to adopt 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% in the data sector. financial services over the next five years. So, while the CPG industry is leading the way in cloud adoption, the BFSI sector is showing great potential for growth.
Embracing the cloud as a response to the pandemic
The retail sector, of which the CPG industry is a part, has been one of the hardest hit by the pandemic, with manufacturing and a supply chain in tatters. Unsurprisingly, he was also one of the quickest to adapt to the ever-changing situation.
Cloud Benefits in the CPG Industry
1. Deeper engagement with customers at low cost
The customer relationship economy is at the heart of CPG’s business. Cloud computing has enabled brands to target customers with a personalized marketing base on their shopping habits and preferences. Even the employee experience can be transformed with the cloud. For example, a self-service portal with an integrated chatbot that enables personalized search and consolidates queries and cases against IT, HR, Workplace and Finance and other departments can improve the experience. employees.
2. Better supply chains and last mile delivery
Cloud computing has also made it possible to identify and solve potential problems in supply chains. Last mile delivery, a major problem for FMCG companies, is being solved through cloud computing. AI-powered solutions help small town merchants connect directly to FMCG brands without having to depend on third-party wholesalers.
3. Growth enabled by ROI with relatively lower initial IT investment
Cloud solutions enable businesses to expand into new markets with increased agility. Cloud computing makes it possible to efficiently deploy IT solutions at scale, so that companies can achieve their business goals with less initial investment in IT.
4. Shorter innovation cycles
Cloud computing also increases accessibility. Thus, employees outside the IT teams can innovate and create solutions customized for their specific needs. Take the example of one of our clients, an American multinational food, snacks and beverage company, which implemented a cloud-based platform to transform the management of its IT services. The platform eliminated friction between processes, technology and data by utilizing the enterprise reporting capabilities available in the solution. It also dramatically reduced manual effort, driving innovation and efficiency in large-scale network operations.
The need for BFSI to adopt the cloud
The BFSI sector can learn a lot from the CPG industry when it comes to cloud adoption. Banks need to recognize that the cloud is not just a technology, but a way to access advanced software applications via the Internet. It can be used by banks for a variety of purposes – from CRM and data analysis to fraud detection and more.
Benefits of cloud in BFSI
1. Enhanced Security
Cloud technology was designed for a data-centric world. Thus, service providers tend to be on their toes when it comes to detecting 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 how the data can be used. Cloud computing enables centralized capture, storage and interpretation of data, giving banks access to faster, richer and more accurate data-driven insights to improve performance.
3. Better customer information
Data-driven insights can enable banks to deliver personalized financial services and gain an edge over fledgling fintechs. A cloud-based platform provides anytime, anywhere access to real-time data that can transform the customer experience. For example, one of our clients, a large US regional bank, was using an onsite customer service tool that was causing a delay in resolving customer complaints due to a lack of integration with their messaging system. Moving to a cloud-based complaint management system helped them automate their complaint management system.
4. Reduced costs
Cloud technology removes the costs of on-premises infrastructure, its maintenance, security updates, etc., thereby reducing costs. It is also possible to decrease or increase the scales of service delivery, thus optimizing costs.
The benefits of cloud infrastructure are too numerous to list, whether for CPG or BFSI companies. But as the world embraces data like never before, cloud computing will not be a pleasant choice, but rather an urgent need. And the companies that will thrive are those that embrace the future before it arrives.
The article was written by Arvind Raman, Global Head – Service Management, Infosys
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