A Definitive List of the Business Benefits of Cloud Computing – Part 2

Improves cash flow

The capital investment you put into an on-premise IT infrastructure is normally based on a long-range forecast of what your highest computing demands will be. But what if, as they often do, the estimates turn out to be too high? Then you’ll have to bear with the huge depreciation cost or monthly amortisation of a grossly underutilised asset for the next couple of years.

That’s why a cloud-based IT infrastructure is much better. With its on-demand, utility-based pricing model, cloud solutions provide companies with clearer financial visibility. You spend on something you’ve already fully utilised, not something you only hope to fully utilise in the future.

How exactly does cloud computing’s on-demand, utility-based pricing work? Well, it’s really very similar to the way you pay for electricity. Let me give you an example. In Amazon’s EC2 cloud offering, consumers are billed on what they call a per instance-hour basis.

Meaning, if some of your servers aren’t needed at night and only need to run 10 hours a day, then you can stop those server instances when the day is done. When you receive your bill, ?you’ll be charged the cost of only 10 hours per day x the number of days those servers were operational.

The advantages of OPEX-based IT spending gets even better when we start talking about businesses that experience sudden spikes or seasonal spikes in consumer demand as in the case of retail, marketing, logistics and others. If you’re running any of these businesses and the demand shoots up ?say during the Christmas season, you can readily scale up your servers, memory, storage, and other computing resources to the required capacity. Then when the season ends and demand goes back to normal, you can just as easily release those resources that are no longer needed.

demand and capacity - cloud infrastructure

Compare that with a traditional IT infrastructure wherein you’d have to predict the highest possible computing demand for the next Christmas season and then build an infrastructure that can satisfy it. During the high months, your infrastructure may come out fully utilised. But what about the rest of the year after that?

demand and capacity - traditional IT infrastructure

Since cloud services are delivered and consumed on-demand, you’ll have more cash on hand than if you had invested in an on-premise IT infrastructure. That means more money to finance other operating expenses or other endeavors like Business Intelligence and analytics, marketing projects, sales incentives, IT innovations, store or office expansions, and many others.

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Big Energy Data Management

Recent times have seen the advent of cloud based services and solutions where energy data is being stored in the cloud and being accessed from anywhere, anytime through remote mobile devices. This has been made possible by web-based systems that can usually bring real-time meter-data into clear view allowing for proactive business and facility management decisions. Some web based systems may even support multi utility metering points and come in handy for businesses operating multiple sites.

Whereas all this has been made possible by increased use of smart devices/ intelligent energy devices that capture data at more regular intervals; the challenge facing businesses is how to transform the large data/big volume of data into insights and action plans that would translate into increased performance in terms of increased energy efficiency or power reliability.

A solution to this dilemma facing businesses that do not know how to process big energy data, may lie in energy management software. Energy management software?s have the capability to analyse energy consumption for, electricity, gas, water, heat, renewables and oil. They enable users to track consumption for different sources so that consumers are able to identify areas of inefficiency and where they can reduce energy consumption, Energy software also helps in analytics and reporting. The analytics and reporting features that come with energy software are usually able to:

? Generate charts and graphs ? some software?s give you an option to select from different graphs

? Do graphical comparisons e.g. generate graphs of the seasonal average for the same season and day type

? Generate reports that are highly customisable

While choosing from the wide range of software available, it is important for businesses to consider software that has the capacity to support their data volume, software that can support the frequency with which their data is captured and support the data accuracy or reliability.

Energy software alone may not make the magic happen. Businesses may need to invest in trained human resources in order to realise the best value from their big energy data. Experts in energy management would then apply human expertise to leverage the data and analyse it with proficiency to make it meaningful to one?s business.

Finding the Best Structure for Your Enterprise Development Team

An enterprise development team is a small group of dedicated specialists. They may focus on a new business project such as an IoT solution. Members of microteams cooperate with ideas while functioning semi-independently. These self-managing specialists are scarce in the job market. Thus, they are a relatively expensive resource and we must optimise their role.

Organisation?Size and Enterprise Development Team Structure

Organisation structure depends on the size of the business and the industry in which it functions. An enterprise development team for a micro business may be a few freelancers burning candles at both ends. While a large corporate may have a herd of full-timers with their own building. Most IoT solutions are born out of the efforts of microteams.

In this regard, Bill Gates and Mark Zuckerberg blazed the trail with Microsoft and Facebook. They were both college students at the time, and both abandoned their business studies to follow their dreams. There is a strong case for liberating developers from top-down structures, and keeping management and initiative at arm?s length.

The Case for Separating Microteams from the?Organisation

Microsoft Corporation went on to become a massive corporate, with 114,000 employees, and its founder Bill Gates arguably one of the richest people in the world. Yet even it admits there are limitations to size. In Chapter 2 of its Visual Studio 6.0 program it says,

‘today’s component-based enterprise applications are different from traditional business applications in many ways. To build them successfully, you need not only new programming tools and architectures, but also new development and project management strategies.?

Microsoft goes on to confirm that traditional, top-down structures are inappropriate for component-based systems such as IoT solutions. We have moved on from ?monolithic, self-contained, standalone systems,? it says, ?where these worked relatively well.?

Microsoft’s model for enterprise development teams envisages individual members dedicated to one or more specific roles as follows:

  • Product Manager ? owns the vision statement and communicates progress
  • Program Manager ? owns the application specification and coordinates
  • Developer ? delivers a functional, fully-complying solution to specification
  • Quality Assurer ? verifies that the design complies with the specification
  • User Educator ? develops and publishes online and printed documentation
  • Logistics Planner ? ensures smooth rollout and deployment of the solution

Three Broad Structures for Microteams working on IoT Solutions

The organisation structure of an enterprise development team should also mirror the size of the business, and the industry in which it functions. While a large one may manage small microteams of employee specialists successfully, it will have to ring-fence them to preserve them from bureaucratic influence. A medium-size organisation may call in a ?big six? consultancy on a project basis. However, an independently sourced micro-team is the solution for a small business with say up to 100 employees.

The Case for Freelancing Individuals versus Functional Microteams

While it may be doable to source a virtual enterprise development team on a contracting portal, a fair amount of management input may be necessary before they weld into a well-oiled team. Remember, members of a micro-team must cooperate with ideas while functioning semi-independently. The spirit of cooperation takes time to incubate, and then grow.

This is the argument, briefly, for outsourcing your IoT project, and bringing in a professional, fully integrated micro-team to do the job quickly, and effectively. We can lay on whatever combination you require of project managers, program managers, developers, quality assurers, user educators, and logistic planners. We will manage the micro-team, the process, and the success of the project on your behalf while you get on running your business, which is what you do best.

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Using Pull Systems to Optimise Work Flows in Call Centres

When call centres emerged towards the end of the 20th century, they deserved their name ?the sweatshops of the nineties?. A new brand of low-paid workers crammed into tiny cubicles to interact with consumers who were still trying to understand the system. Supervisors followed ?scientific management? principles aimed at maximising call-agent activity. When there was sudden surge in incoming calls, systems and customer care fell over.

The flow is nowadays in the opposite direction. Systems borrowed from manufacturing like Kanban, Pull, and Levelling are in place enabling a more customer-oriented approach. In this short article, our focus is on Pull Systems. We discuss what are they, and how they can make modern call centres even better for both sets of stakeholders.

Pull Systems from a Manufacturing Perspective

Manufacturing has traditionally been push-based. Sums are done, demand predicted, raw materials ordered and the machines turned on. Manufacturers send out representatives to obtain orders and push out stock. If the sums turn out wrong inventories rise, and stock holding costs increase. The consumer is on the receiving end again and the accountant is irritable all day long.

Just-in-time thinking has evolved a pull-based approach to manufacturing. This limits inventories to anticipated demand in the time it takes to manufacture more, plus a cushion as a trigger. When the cushion is gone, demand-pull spurs the factory into action. This approach brings us closer to only making what we can sell. The consumer benefits from a lower price and the accountant smiles again.

Are Pull Systems Possible in Dual Call Centres

There are many comments in the public domain regarding the practicality of using lean pull systems to regulate call centre workflow. Critics point to the practical impossibility of limiting the number of incoming callers. They believe a call centre must answer all inbound calls within a target period, or lose its clients to the competition.

In this world-view customers are often the losers. At peak times, operators can seem keen to shrug them off with canned answers. When things are quiet, they languidly explain things to keep their occupancy levels high. But this is not the end of the discussion, because modern call centres do more than just take inbound calls.

Using the Pull System Approach in Dual Call Centres

Most call centre support-desks originally focused are handling technical queries on behalf of a number of clients. When these clients? customers called in, their staff used operator?s guides to help them answer specific queries. Financial models?determined staffing levels and the number of ?man-hours? available daily. Using a manufacturing analogy, they used a push-approach to decide the amount of effort they were going to put out, and that is where they planted their standard.

Since these early 1990 days, advanced telephony on the internet has empowered call centres to provide additional remote services in any country with these networks. They have added sales and marketing to their business models, and increased their revenue through commissions. They have control over activity levels in this part of their business. They have the power to decide how many calls they are going to make, and within reason when they are going to make them.

This dichotomy of being passive regarding incoming traffic on the one hand, and having active control over outgoing calls on the other, opens up the possibility of a partly pull-based lean approach to call centre operation. In this model, a switching mechanism moves dual trained operators between call centre duties and marketing activities, as required by the volume of call centre traffic, thus making a pull system viable in dual call centres.

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