Summary: As more and more enterprises join the ranks of digital transformation, every enterprise is looking forward to digital can bring its secondary growth. The planning and implementation of “cloud enterprise” means the integration and superposition of technological upgrading, organizational upgrading and strategic upgrading for enterprises, and has practical significance for the success of digital transformation of enterprises.
Author: Xu Shijun
As more and more enterprises join the ranks of digital transformation, every enterprise is looking forward to the second growth that digitalization can bring. The planning and implementation of “cloud enterprise” means the integration and superposition of technological upgrading, organizational upgrading and strategic upgrading for enterprises, and has practical significance for the success of digital transformation of enterprises.
Digital for organization has been extended to the influence of nerve endings, an enterprise cloud on real significance, the transformation process is necessarily true, based on the enterprise customer service experience for many years, we summarize the proposed design framework “” enterprise cloud strategy and development, the target is for the enterprise to carry out the cloud digital transformation method provides a theoretical reference and guidance, to avoid mistake, improve the success rate. In the future, we will continue to focus on the organization, talent, consulting and operation of the enterprise, and explore more successful roads in the broader digital transformation of the industry.
“Cloud enterprises” and “cloud enterprises”, this is not a primary school Chinese topic, but enterprises in the era of digital economy cognition.
In 2021, the National Industrial Information Security Development Research Center and Accenture Business Research Institute jointly surveyed and released the “2021 Chinese Enterprise Digital Transformation Index” report, which pointed out that 560 enterprises participated in the digital research, only 16% of enterprises in the digital transformation to achieve more obvious results. There are also many businesses that do not clearly feel the value of digitalization. There must be some barrier between the business and production practices of cloud enterprises, so we have been thinking about what “cloud” means to enterprises.
In the past few years, whether enterprises want to make digital transformation or go to the cloud is decided by the CIO and CTO in charge of informatization. At that time, the vast majority of enterprises, including us who provide cloud computing products and services, all think that going to the cloud is a technological choice and regard it as the continuation of informatization.
However, as cloud computing evolves, we find that more and more corporate strategy leaders are deeply involved in the digital transformation of their enterprises, and they care about a more complete picture on the cloud. Cloud manufacturers can not sell the cloud to pack up and leave, we must give customers to describe a blueprint, and to plan a clear digital path.
This prompts us to think again about the important aspects and propositions to focus on if “enterprise on the cloud” represents a strategic choice.
From “Cloud on Enterprise” to “Enterprise on Cloud”
From “cloud on enterprise” to “enterprise on cloud”, the role of cloud in enterprise digital transformation strategy has undergone fundamental changes
Cloud is the first step in enterprise digital transformation, has become the industry consensus.
In the past, when we said “cloud on enterprise”, most of our work was about “cloud on enterprise IT infrastructure” and “cloud on application system”. Large enterprises move all kinds of management systems, production systems and marketing systems from the original old computer room or independent IDC to the cloud, saving a lot of IT infrastructure construction costs and operation and maintenance costs; Small and medium-sized Internet companies move their core business to the cloud, and use the dynamic elastic expansion ability of the cloud to solve the IT bottleneck problem in the rapid growth of business.
In these scenarios, cloud represents a new mode of IT resource use and delivery, with incomparable economic advantages of traditional IT services, which makes cloud become a brand new factor of production in the digital transformation of enterprises.
In today’s increasingly high degree of digital economy, enterprises need to realize online production and management through the cloud, and even connect with a wider range of external social resources, business flow, goods flow, capital flow, talent flow, information flow — so cloud is not just a computing resource, but the start of a new strategy. The cloud as a full-time online digital carrier, natural have across the physical time and space advantage: enterprise based on the cloud, can let more related party online form symbiotic network connection, run will generate a lot of behavior interaction data, intelligence of enterprise through the algorithm of mining, which provide possibilities for digital business innovation. In this sense, cloud has also become a brand new production relationship in the digital transformation of enterprises.
From the factors of production to the production relations, and thus become a new productivity, similar to the cognitive changes also occurred in the age of electricity, can be concluded that the combination of technology and social development each kind of revolutionary technology on the one hand, can form a tool, a means of production, on the other hand, it will certainly be profound changes with all kinds of production relations.
Electricity and the cloud, in addition to being new productivity factors, can influence, relate to and change other productivity factors, and based on these considerations, we believe that the cloud should be viewed from a socio-economic perspective.
Over the past five years, China’s digital economy grew at an average annual rate of 16.6 percent, twice the average GDP growth rate, and reached 39.2 trillion yuan, accounting for 38.6 percent of GDP. Even under the combined impact of COVID-19 and the global economic downturn in 2020, China’s digital economy still maintained a high growth rate of 9.7%, more than three times the GDP growth rate in the same period (Digital Economy White Paper 2021 by THE Ict). Digital economy has become an important engine and key driving force for China’s medium – and long-term stable economic growth, and the era of digital economy has officially come.
The rapid development of digital economy, also in the drive enterprises to accelerate into the digital transformation of the deepwater area “: not only to realize the enterprise IT architecture supporting requirements, but also realize the business to reshape authors, increase efficiency, the developmental requirement of finding new business growth model, at the same time also to meet the safety compliance, risk control, green development aspects of binding requirements.
For enterprises, today’s digital transformation is no longer a question of “whether to do it or not”, but “fast” or “slow” transformation speed, “high” or “low” transformation quality, which determines the success or failure of enterprises in this digital economy tide.
Establish the concept of “indigenous people” in the digital economy era
The transformation process from “on-cloud enterprise” to “on-cloud enterprise” is not always easy, and it is also the evolution path of the enterprise from “immigrant” to “indigenous”. McKinsey’s figures show that only around 20% of traditional firms succeed. Traditional enterprise transformation is often faced with the following misunderstandings:
Misconception 1: The application of digital technology is equal to digital transformation
Gartner predicts the future development of cloud computing that 85% of enterprises and organizations will adopt the “cloud first” principle by 2025, with a strong desire to go cloud. However, many heads of enterprises lack an overall view of Shangyun. They believe that shangyun provides better IT resources and advanced technology platform for enterprises, which means digital transformation. They do not realize that digital transformation should be combined with the overall strategy, key business development and business value of enterprises. Is the enterprise concept, strategy, organization, operation and other all-round reform.
Second, the implementation of transformation strategy lacks systematic guarantee
There is a very clear boundary between the traditional enterprise information department and the business department. The information department is usually only responsible for the availability of IT resources and business systems, but little involved in business planning. IT is only responsible for “digitization” but not “transformation”. Even for the business departments with transformation requirements, the overall planning and landing path design are not scientific enough and the overall situation is insufficient due to the lack of effective organization, talent, assessment and incentive mechanisms. For example, consider which business transformation is a one-way door with no way back, and which business transformation is a revolving door.
Mistake three, “cloud” when the end of the neglect of sustainable development
Most enterprise IT leaders see building the cloud and “moving” their applications to the cloud as a “visible success” of their technology efforts. They don’t realize that “going to the cloud” is not the end, but the next three actions are the key: First, how to make the collaborative development of ecology on the cloud more smooth; second, how to ensure the accurate matching between the supply and demand of cloud resources and ensure the resource utilization rate; third, how to promote the aggregation of enterprise’s own data on the cloud and flow it as a factor of production legally and legally. These are the keys to the cloud’s continued value and support for business transformation.
Map the enterprise cloud strategy
Based on years of government and enterprise customer service experience, we summarize and propose “Enterprise cloud Strategy and Development Design Framework”, aiming to provide a set of methodological reference for enterprises to carry out digital transformation on the cloud, avoid mistakes and improve the success rate. Including the following five key elements:
Strategically, “cloud” should be closely related to the formulation and implementation of enterprise business strategy
First of all, “cloud” is an important basis for the formulation of enterprise strategy. The essence of strategy is to solve development problems. In the era of digital economy, “speed + disruption” makes enterprise development opportunities full of uncertainty. Sometimes it is hard to see a strategy by “people” alone. At this time, the “relationship network” and precipitation data on the “cloud” are needed to help enterprises see a lot of unclear customer needs and business opportunities, so as to make more deterministic strategies. It can be said that where the enterprise extends the value boundary of “cloud”, the enterprise’s future development map will go to where.
Secondly, cloud is the key to the implementation of enterprise strategy. Enterprise strategy is top-down design and dismantling, and cloud strategy is closely matched and hosted by it. There are three key actions to be taken: first, focus on the position of cloud in the enterprise strategy and define the phased goals of cloud in terms of capability level and value creation; Second, identify key opportunities and value scenarios of business cloud and define key results and revenue indicators of business cloud; Third, choose cloud architecture and technology route, evaluate and make decisions from strategic perspective based on development, value creation, competition, cost and self-research of technology and other factors.
A large head car company in China has been implementing cloud and digital transformation since 2016, but digitalization has been unable to focus on business goals and results. In 2021, the cloud consulting planning project was launched to disintegrate the enterprise strategy in four aspects of “Group governance and globalization”, “global trendy brands and trendy products”, “cognitive intelligence” and “green carbon neutrality”. Through dozens of joint surveys of technical departments and business departments, Detailed to the “four connections” (external users, internal users, suppliers, equipment), “three through” (design and development, supply chain, marketing) and other specific strategies, and the implementation of cloud construction, use, management, operation. At the same time, based on the current situation, the enterprise has carried out the “cloud capability maturity assessment”, found 10 aspects of the gap, clear the next “cloud enterprise” construction of 26 key tasks.
Organizationally, the digital transformation of people and institutions should be promoted
Enterprise digital transformation is first of all the transformation of people. Before going to the cloud, the enterprise had all kinds of development, testing, operation and maintenance personnel. After going to the cloud, do these original positions and people continue to exist? What are the changes in working style and competency requirements? What new jobs need to be created? To think clearly at the level of organizational design, the key to do two things:
** First, cloud governance organization optimization. ** Cloud transformation is a new thing, easy to happen “small things many decisions, big things no one decision” situation. The enterprise should sort out the interests and demands of all relevant parties in cloud construction, application, management, operation and maintenance, construct the responsibility matrix of cloud matters, and optimize the organizational structure, decision-making mechanism and process of cloud technology decisions. The sooner these things are determined, the better.
** The second is cloud talent development design. ** traditional enterprises are faced with a large division of labor bureaucracy, to be efficient, need is specialized, do things exclusively; Today’s digital transformation of enterprises, innovation is needed, but the lack of all-round talent, do things right. Enterprises need to reconsider talent requirements and develop new positions, and carry out a series of actions such as knowledge coordination system construction, personnel capacity improvement, external talent cooperation and introduction.
Lu Shang Group started digital transformation under the pressure of the epidemic. The chairman personally took charge of the digital transformation leading group leader. With the guarantee of organization, all industrial sectors and secondary companies cooperated very much, and more business units volunteered to participate in the implementation of the second phase project. Also group on the basis of the original information centre for organizational change, the new data center, information center of the original main operational support work, and now the big data centers and business more closely, spent personnel from each business unit pump, not only have technical ability and more business thinking. In this way, the big data center gradually emerges from the background to the middle stage, providing powerful business support for front-line departments with data.
Business, to achieve business innovation and cloud “integration” growth
First of all, for traditional enterprises, digitalization is a kind of reinvention rather than improvement. Traditional businesses are mostly steady businesses with clear responsibilities and fixed processes. However, in the digital era, the production mode, marketing mode, operation mode and management mode of enterprises have undergone tremendous changes due to the full use of “data”, a new element. The business innovation scenes we see today, such as global marketing, live streaming with goods, Internet of everything, scanning code payment, digital factory, industrial interconnection and intelligent decision making, are all reconstruction of the past steady business. Internet enterprises are born with “cloud genes” and “data genes”, and their businesses are mostly based on data and “grown” from the cloud. The digital transformation of enterprises is first of all the transformation of people. The key is to do two things well: one is to optimize the cloud governance organization; Second, cloud talent development design. Today’s digital transformation of enterprises, innovation is needed, but the lack of versatile, to do things right itself has the characteristics of digital original, fast and flexible. Therefore, for traditional enterprises, they should firmly promote core business data to the cloud, open up more data, realize data closed-loop, and create new digital business through reconstruction. In this way, companies can fundamentally improve their competitiveness and be reborn.
Based on the development of its core business, Feihe Dairy Group adheres to the overall transformation strategy of “establishing online connection between physical retail and the whole range of consumers, and driving the comprehensive digitalization of human goods yard with big data”. Through the construction of cloud data platform, it has opened up 29 business fronts. It has accumulated core data assets such as more than 16 million members, 100,000 stores and 30,000 shopping guides, fully realizing the goals of data standardization, capitalization, value and service, providing cloud data support for the group’s all-channel digital marketing, refined operation of terminal stores and improvement of customer service system. Today, the company has become the leader in China’s dairy industry both in terms of sales performance and brand influence.
Technically, key business problems should be solved through advanced cloud native technology
1. Cloud native distributed architecture can quickly realize cross-regional and cross-business collaboration of enterprises
A large power grid company adopts proprietary cloud deployment in the stage of cloud platform planning and design. The overall architecture adopts the deployment mode of “one cloud and multiple regions”, which not only meets the requirements of unified management and control at the headquarters, but also meets the requirements of self-operation and self-maintenance at the provincial level. On the basis of this architecture, one cloud of Intranet and one cloud of extranet of the whole company is built, forming “IT resource service center” and “data service Center”, realizing “two-level coordination” of operation, maintenance and operation, and consolidating the digital foundation of the company.
2, cloud native high reliability, to provide a solid guarantee for business continuity
A road network center is responsible for the system construction of canceling trans-provincial toll stations and realizing trans-provincial unified settlement, with high social responsibility and great business pressure. By using 128 data nodes of cloud native distributed database PolarDB-X as the main database platform, the center supports real-time data storage and processing of 29 provincial data centers, 25,000 sets of longmen frames and 226 million ETC users. The database supports more than one billion incremental data every day. The number of transactions written was as high as 45,000 per second. In the first week of the removal from January 1 to 7 in 2020, the number of toll stations with slow traffic over 500 meters decreased by 18% compared with the same period last year. Realized the national high-speed day expense settlement and invoice fitting, to ensure the high reliability of business.
3, cloud native development technology, accelerate enterprise application cloud
As businesses become more flexible, application development needs to become more agile. Cloud native development is a set of system based on container, microservice, DevOps, low code and other technologies. From various stages of technical architecture, development, testing, deployment, operation and maintenance, enterprises can quickly build “cloud native applications” that are truly “born in the cloud” and maximize the advantages of cloud. In a medical packaging manufacturer in Hebei province, the founder led his senior executives to build an order system, ERP system, quality analysis system and equipment management system based on the low-code development platform on the cloud. It only cost tens of thousands of yuan to implement for about three months, and achieved the effect of easier data integration and higher use efficiency.
In operation, we should attach equal importance to cloud security operation and data operation
1. Automation and intelligence of cloud operation and maintenance
After enterprises go to the cloud, the focus of o&M work is freed from the original maintenance of the stability and reliability of the hardware in the computer room, and becomes o&M oriented to the whole digital business scenario, including massive data processing, high concurrent connection, real-time data transmission, heterogeneous system call, etc., which is almost impossible to complete by relying on human workers. At this time, the key of cloud operation and maintenance is how to transform from manual to automatic and intelligent.
After a logistics enterprise went cloud in 2019, it not only realized automatic management of daily system operation and maintenance, but also formulated the operation and maintenance navigation plan during the “Double 11” traffic peak period: Before the arrival of “Double 11”, the o&M team completed three rounds of full-link pressure tests for all 12 business scenarios, and formulated more than 10 contingency plans for core business scenarios, including traffic protection, elastic capacity expansion, ABNORMAL MIGRATION of ECS, and database switchover. During “Double 11”, the success rate of order withdrawal and response efficiency are monitored in real time through the service market, and the resource level of core business is monitored in real time through the resource market, thus ensuring 100% availability of the core system.
2. Standardization and scientization of cloud operation
Cloud operation refers to all management activities occurring after the cloud is put into use, including application, ordering, consumption, billing, monitoring and reporting of cloud services. The core of cloud operation is to do three things: first, the cloud service catalog and service level agreement must be standardized and visible to users, which is an important contract between supply and demand of cloud; Second, the cloud resource metering and accounting mechanism should be formulated scientifically to promote the green and rational use of all kinds of resources, improve the utilization rate of cloud resources and avoid waste. The third is to combine cloud operation with business operation indicators, insight into business changes according to cloud resource changes, and provide reference for business decisions.
conclusion
As more and more enterprises join the tide of digital transformation, every enterprise is looking forward to the second growth brought by digitalization. The planning and implementation of “cloud enterprise” means the integration and superposition of technological upgrading, organizational upgrading and strategic upgrading for enterprises, and has decisive basic value for the success of enterprise digital transformation.
Digital for organization has been extended to the influence of nerve endings, an enterprise cloud on real significance, the transformation process is necessarily true, we will continue to “enterprise cloud strategy and design framework for development” as the guide, pay attention to enterprise organization, personnel, consulting and operation and so on a full range of innovation, in the broader industry digital transformation to explore the road to success.
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