Future of Cloud Computing with a Flavor of Finance and HR

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“Cloud computing is empowering; companies leveraging cloud will be able to innovate cheaper and faster.” – Jamal Mazhar, Founder and CEO, Kaavo

Well, this is what experts say about the cloud. And with data always on our mind, it is essential to understand why cloud computing happens to be a necessary service for businesses of almost every size and type.

I am sure you must have read and heard a lot about the importance of cloud computing for businesses. Today, let’s take this opportunity to review the benefits of cloud for a company from a CEO’s perspective (maybe the one reading this now is not a CEO, but one day, you never know).

As the finest benefits of cloud can surprise you, it is essential that the right person understands and leads the transformation.

So, let’s gather and get started with some fascinating statistics,

In a 2010 survey carried out by IBM, the statistics stated that more than 1,500 CEOs all over the globe got candid about the troubling gap between finance and HR. About 80% of them were of the opinion that the environment would get more complex. You would be surprised to learn that lesser than half of the companies though they were fully equipped to deal with this transformation.

The survey team found this to be the “largest leadership challenge identified in eight years of research.”

The reason behind this is the IT infrastructure at large setups that makes it all the more challenging. This is the primary reason why technology environments fail to sense change and respond quickly.

Since there is no simple fix for this issue, cloud computing works as an effective remedy with a collection of new digital tools and approaches.

Here is what the CEOs need to know about the benefits of cloud

To a few, there is nothing magical about the cloud. They feel that there is nothing cloud can do what an on-premises server cannot. Well, this holds to an extent only for companies that have the capacity to afford and maintain comprehensive enterprise software and exclusive IT talent.

However, to enable these solutions, the company has to take care of installing it further in data centers and then enabling these applications on a variety of devices and then making it accessible to employees present at work and the ones operating remotely. Well, this indeed is a tedious, time-consuming, and expensive process that companies prefer to skip.

From a broader perspective, CEOs need to engage and take the lead as most IT departments are overwhelmed with maintenance activities leaving very little room for development or newer initiatives.

So why cloud?

Cloud is a platform that enables companies to chase their targets and goals dexterously, and, in several cases, enterprises also benefit from the cost-effective element.

Additionally, it is essential to understand that unexpected cloud benefits arise after a project is launched, and this is the time when employees come across innovative ways to use technology.The only things CEOs and other decision-makers need to pay special attention to are concerns such as:

  • Cost
  • Security
  • Reliability

Decoding the future of cloud computing

As per a report by Grand View Research, in 2019, the global cloud computing market size was valued at USD 266.0 billion and is expected to grow at a CAGR of 14.9% from 2020 to 2027. Well, these numbers look very promising, and elements such as rapidly growing digital transformation and proliferation of mobile devices along with reliable internet presence across the world increase the graph data that works a primary force to drive market growth.

Not just this, but innovation and development of advanced industrial solutions are planned to be cloud enhanced and will demand a cloud platform to promote their digital business capabilities.

Talking about innovations, the rise in the cloud computing market is all set to introduce a series of innovative avenues in the near future.

Here is a sneak peek in the future of cloud,

Serverless computing

Serverless computing is a concept or technique that enables the implementation of functions in the cloud on requirements. This helps enterprises that depend on servers with a larger space to work on the core product.

Hybrid cloud in the limelight

Explaining this point with the help of statistics will make it easier to relate.

In 2018, the actual number of businesses that signed up for hybrid cloud was 52%, and the number rose to 58% in 2019. This indeed is a huge increment and the primary reason for this rise in the series of advantages it offers.

Hybrid cloud today witnesses a large number of enterprises introducing hybrid cloud into its IT infrastructure. The key reason for this transformation is the advantages such as control and security on private networks and scalability and versatility on public networks.

Addressing digital needs

Based on a study published by Digital Marketing Resource Center, millennials of the digital era are expected to cover about 75% of the workspace by the year 2025.

This is where the demand for cloud computing intensifies.

Finance and HR in the cloud: need and benefits

We all know that finance is not a revenue-generating function, but the department is well associated with the bottom line of the business. Similarly, the HR (human resources) function supports getting the right person at the right place and enables the smooth functioning of any organization.

However, it is now time to understand how Finance and HR are closely interconnected.

Let’s get a sneak-peek into these functions,

Need

Several enterprises today are looking forward to creating a shared finance and HR function, as these functions share common technology requirements based on –

a. An overall view of the employee’s roles, responsibilities, and Key Responsibility Areas (KRAs)

b. The requirement to stay up to date with changing norms (internal and government) and adapting to best practices

c. Need for streamlined procedures and higher automation functions

The reason that these two functions have so much in common; it makes complete sense to intertwine these functions and run them on a single cloud solution.

Top three benefits of the collaboration

The following are key areas that are catered to while running the finance and HR functions on a unified cloud platform.

Enhanced productivity

A shared finance and HR function on the cloud embedded with improved levels of automation can drastically reduce the personnel’s time from doing repetitive and mundane tasks such as transaction processing or data entry. This certainly gives this personnel more room to focus on tasks that can drive business growth.

This clearly results in better opportunities to develop new skills, work around innovative ways of recruiting, and indulge in activities to retain the best talent. Additionally, the common cloud platform allows HR to examine individual performance, work on essential priorities, and recommend the organization with valuable way forward tips.

Enables better decision making and planning

The availability of real-time access to information that is error-free, easily sharable, along with comprehensive data, keeps both the departments well informed and adds to the confidence quotient in terms of reports. Furthermore, this makes decision making easy and accurate and aligns plans as per business goals.

Efficient data management

With several touchpoints in common, the collaboration of finance and HR functions on a single cloud platformcan work amazingly for the company on the cost element.

Additionally, the common data model offers more accessible and quicker methods, takes care of duplication, and leaves very little room for human error.

Reasons why finance and HR cloud need to meet

Here are some reasons that compel finance and HR to be on the same page.

1. Budget to Approval

2. Asset Acquisition to Retirement

3. Bank Transaction to Cash Position

4. Expense Report to Reimbursement

5. Supplier Invoice to Payment

6. Daily Close to Financial Forecast

7. Period Close to Tax Provision

8. Requisition to Receipt

9. Contract Creation to Spend Compliance

Conclusion

It is time for businesses to realize that finance and HR functions are closely related. And to effectively bank on both, it is wise to get them on a single platform, i.e., on the cloud. This will help businesses utilize the same data to deliver the best results.

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