By David Farquhar, Group Chief Executive, Workplace Systems
Many retail leaders struggle with the concept of the cloud, and are finding themselves under increasing pressure to assess and embrace it within their own organization. It seems the frequent objections made to cloud technology are largely due to a lack of awareness about the solutions available; what they cost, how they are maintained, the level of security they provide.
The clearest way to demonstrate how the cloud can impact business performance is to forecast results through data modeling — but for now, I’d like to simply explore common objections to the cloud. In a time of massive change for the retail sector it’s about time that we increased our understanding of how the cloud can benefit a retail business as a whole — crossing departmental boundaries from product buying to sales and store management.
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Costs: What Am I Actually Paying For?
Businesses looking to migrate from legacy software or hardware systems and invest in a cloud service are often unclear on the associated costs — a common problem when outsourcing anything. The cost of the cloud is always clear if you do your research and understand exactly how much cloud storage or processing power you need to manage staff, stock, financial data or e-Commerce functionality.
The initial investment businesses make when engaging a cloud vendor is almost always lower than purchasing manual or internally hosted solution — not least because many providers make their offering available on a subscription basis, which lowers the risk no matter whether you have two or 200 retail outlets. Time to value is also short: cloud solutions can be up and running, and even delivering clear results, in less than 30 days.
Every business must invest in the right people to drive forward technological change, but this aside the cloud does generally have lower associated long-term costs. A good vendor will maintain and update your cloud solution constantly to ensure it’s always operating at the optimum level for your business — meaning no costly hardware failures and service maintenance charges.
This evolution should also safeguard you from having to reinvest in a whole new solution two years down the line from an initial implementation. This poll of over 1,200 small businesses cited “cost savings, increased efficiency and greater innovation as key benefits” of implementing cloud solutions.
So you’re paying for a lightweight, outsourced solution that ultimately cuts operating costs and boosts staff productivity by reducing the pressure on sales associates, financing and management. We’ve seen first-hand how cloud-based workforce management solutions ease pressure on internal staff, boost staff morale and ultimately lead to better customer service and higher sales.
The cloud has had to work harder to prove its worth to traditional retailers who want to see something tangible in store for their money. But the beauty of the cloud is that it benefits multiple retail branches with just one integrated, centrally managed solution, and is an eco-friendly option for many businesses looking to cut overhead costs.
Security And Accessibility: Where Is My Data?
The security of the cloud is frequently named as a number one concern for business decision makers. In reality, cloud security systems are on par — if not better — than any storage system which is internally managed. In fact all data stored in the cloud is backed up multiple times by your vendor, stored in multiple encrypted formats, and housed in high-security data centers.
Some providers even use white hat hackers and fake delivery men to test security procedures at their data ‘warehouses’. The cloud may sound hard to grasp, but it does have a physical facet which many people are unaware of, and the lack of clarity about this is too often be a major cause for concern.
Research has shown that 89% of the global workforce community currently lacks understanding of the ways security protection applies to the cloud. The problem here is not inadequate security but lack of awareness. For example, moving retail resource planning into the cloud can be daunting — especially for the more conservative financial departments within a retail business which are naturally hesitant about moving sensitive data. But a general hesitancy within your business regarding cloud solutions shouldn’t stop the newer functions of your business upgrading if the wider business is well informed.
I’ve already touched on the fact that the lack of a physical unit involved with implementing a cloud solution makes it harder for businesspeople to visualize the investment they’re making, but it shouldn’t lead to doubts about data security or access.
Support: Who’s Got My Back?
Many cloud providers claim they have the end-all solution to businesses problems, but undoubtedly retail leaders will question the practical, day to day support these providers offer their business day to day.
When outsourcing your business processes to a third party provider, the burden of ongoing maintenance for that solution is placed upon the cloud vendor, not on your in-store staff. Outsourcing business processes takes away the cost burden associated with maintaining a data centre to process critical information like sales data, stock forecasting and staff rota scheduling 24/7. This support helps retailers to claw back time and money which was previously spent on maintaining energy-hungry, manually controlled hardware.
A good cloud vendor should provide support for your business, not just your data; from training staff to handling requests for data or issues that arise. You will of course still need internal support — whether this means reorganizing the workforce or hiring new people.
Your cloud vendor should support your cloud solution as it supports you — upgrading, tweaking and scaling it to support your business as it changes over time. No hardware can do that. The frequent updates best-in-class cloud providers regularly make to solutions ensure your business is always getting the best service, rather than it becoming outdated or unsuitable. Think of the cloud as an extension of your business, and a way to tap into expertise you may not have within your organisation.
Just like with any technology investment, the research into your goals and exactly what you need to achieve those goals is essential – and this will help ensure that you are supported throughout the whole process, whether you require training, technical expertise or simply data processing power.
The cloud may not be a tangible solution, but the business results will be felt and seen through lower overhead and management costs, greater productivity, and higher sales.
David Farquhar is the Group Chief Executive of Workplace Systems, the leading supplier of workforce management solutions in the cloud. Farquhar is a serial entrepreneur with over 20 years’ experience in the enterprise software sector. Under his leadership, Workplace is helping the world’s leading retail and leisure companies to gain a competitive advantage through providing better customer service from better engaged associates which leads to sustainable revenue growth.
