• September 24, 2015

Your On-Demand Enterprise

It’s the age of on-demand. Booking a taxi ride or a hotel room with the tap of a finger when you need it, where you need it, or changing the temperature in our homes from 1,000 miles away is status quo. This service-based economy has dramatically impacted how we live and redefined how the enterprise works, too.

Like shopping on Amazon, a vast catalog of on-demand technologies can empower the enterprise to browse and select from ready-made business solutions. Importantly, these solutions don’t require costly implementations or labor intensive, on-premise maintenance. Instead, they’re available in real-time with a simple point and click—and they’re often tailor-made for a specific industry or function.

The benefits of that as-a-Service model are numerous (and some are obvious), but its core value to the enterprise boils down to two key factors:

  1. Flexibility, scalability, and capability: With on-demand services and solutions, the enterprise can add, subtract, and modify technology at a moment’s notice and easily scale capacity on an as-needed basis.
  1. Operational efficiency and cost optimization: By providing improved and increased functionality that optimizes how the enterprise—and its workforce—operate, organizations can dramatically increase productivity and, as a result, better optimize costs and resources.

With those benefits in mind, it isn’t surprising that Cowen & Company’s 2015 mid-year IT spending survey found that 77 percent of enterprises report meaningful adoption of on-demand cloud services, including IaaS, PaaS, and SaaS solutions. This adoption will only increase as the enterprise and its employees become more mobile. According to a Gartner study, employees in the enterprise use an average of three different devices or technologies in their daily routine. That number is expected to climb to five or six by 2017.

On the surface, all of this presents very powerful opportunities for enterprise innovation and competitive differentiation. But adapting to this on-demand trend will require a shift away from old-school IT paradigms (on-premise IT systems, redundant applications for individual business units, etc.) and toward a model that empowers continuous transformation through agility and adaptability.

While this transition presents its challenges, in the long-term, the operational and financial impact on the enterprise—and the opportunities for rapid innovation—will be well worth the minor hassles of change. After all, if one thing is clear it’s that on-demand isn’t a trend. It’s the new age of enterprise operations.

For more on shifting opportunities, check out The Age of Enterprise Transformation.