The forecast is ... cloudy

IT trends can be difficult to predict. But the business barometer is pointing with even greater certainty towards cloud computing. Two recent surveys have confirmed this.

A study by Dell and Intel discovered that an overwhelming majority of IT and business people plan to "significantly or moderately increase use of cloud" in the next year. For the EMEA region, which includes Europe, the figure was an emphatic 78%, according to reports.

Meanwhile, analysts IDC have released a new report that indicates public and private spending in cloud computing will increase exponentially over the next few years (which will lead to a massive jobs boost world-wide and in the UK). More details here.

Companies are clear about the business drivers too. Nearly two thirds of those in the Dell/Intel study wanted to reduce their infrastructure costs, while improving IT organisational agility came next.

In the view of this column, cost reduction and agility are especially relevant when it comes to cloud-based, purchase-to-pay (P2P) systems. But the two are wrapped up closely together and the emphasis is slightly different.

With agility, it’s not so much about the IT organisation itself – but a transformation that can be achieved very quickly within the business. Organisations can do something radical about spend control and back-office efficiency through automating processes - within weeks rather than months. Processes accelerate, become more transparent and cost less to run.

Continuing with the costs theme … the ideal, state-of-the-art P2P system doesn’t add to capital expenditure because it’s cloud based and available from a browser. Cost savings arrive from those back-office efficiencies we mentioned as well as greater control and oversight of approved contracts that offer best value.

The other great news is that the best P2P systems will pay for themselves extremely quickly – which makes cloud-based solutions even more attractive.

How to avoid unexpected consequences

Are you planning to watch the Olympic torch relay pass by – or have you done so already?

Over coming weeks, the 8,000-mile relay will travel to all corners of the UK as we near the opening ceremony of the Olympics on 27 July.

There’s been a fuss about the torches. For one thing, bearers have been asked to pay £295 if they want to keep them. But now a mini furore has ignited over what happens to the thousands of torches afterwards … particularly the ones that have been ending up on eBay.

Bids are reaching thousands of pounds. And, apparently, there’s no restriction on bearers selling them. Some sellers are reported to simply be ‘needing the money’ to pay for household bills while others are generously donating the proceeds to charity.

Whether some of this goes against the Olympic spirit – or is simply a great way to ‘share the money around’ among everyday people – is another debate.

But what’s clear is that if you put people, money and commodities together, without clear rules, then unintended consequences sometimes occur!

In the world of procurement, this can happen with maverick spending. Without a single procurement system and a set of business rules, then the outcomes can be surprising and expensive if the wrong purchases are made at the wrong price from the wrong suppliers ... without people noticing until it’s too late.

However, with the right procurement solution, buyers are guided to authorised suppliers with agreed contracts. Their purchases are authorised by the right people in a clear and auditable way – and ultimately their organisation achieves best value, possibly saving substantial amounts along the way.

Fortunately, achieving this doesn’t have to be an Olympian struggle. Winning solutions are out there already.

Green light for automation – watch the video

And we’re off! This week the state of Nevada gave Google the go-ahead for its driverless car. The vehicle has already notched up 140,000 test miles but now it’s been granted a licence to travel on real roads.

Video cameras, lasers and radar help the car travel safely. But two people must always sit in at all times - to take control if its computer makes a blunder.

You can watch a video of the car here …



The news may thrill or alarm people in equal measure. BBC Top Gear’s analysis could be interesting - if and when it’s broadcast. And you wonder how the car could do against the Stig around the show’s test track?

But, either way, the breakthrough pushes the bounds of automation. And it makes you wonder what else is possible?

Where business processes are concerned, a lot is happening now with back-office automation – and has happened already. It won’t grab the same media attention as a robo-car. But it’s a quiet revolution paying a handsome return for those in-the-know.

If you take electronic invoicing, like the Google car, the process can become hands-free – and can work at lightning speed. But you don’t need massive upfront investment … or a government licence.

How many suppliers would give you their vote?

It’s May 3 – election day for 131 English local authorities, all 32 in Scotland and 21 in Wales, plus the London mayoral contest and two others in Liverpool and Salford.

Over the next few days, political pundits will pour over the results. What if it was actually the general election – who would win? How much were local issues at play? And what do the results mean for the future career of leader X?

Of course, it’s impossible to predict at this stage. But one thing’s for certain: The turnout among voters will be massively short of 100%. In fact, for local council elections it usually hovers around a paltry 30%. This is blamed on voter apathy and a stack of other reasons.

There are options for change. Firstly, the tyrannical one of forcing people to vote (usually for one candidate). Let’s forget that. But, in recent years, governments have used more subtle approaches such as introducing postal voting and pilot schemes for Internet voting. No big upturn in numbers just yet.

Of course, the politician that gets elected with just 30% turnout doesn’t complain.

But in areas of business, getting everyone’s buy-in is essential. Take the introduction of a purchase-to-pay (P2P) system for instance. If a buying organisation has 500 important suppliers, then ideally 100% of them should be on board with P2P.

The success of getting their ‘vote’ can make or break a P2P system – and will help decide whether buying organisations will achieve their hoped-for savings and return on investment. What good is flashy procurement interface and a slick invoice processing system if suppliers simply ignore them?

What’s vital is proper engagement with suppliers. Good communications, explaining how they gain too. And a range of easy-to-use, flexible ways for them to sell their items and submit invoices easily – regardless of their company’s size and IT know-how.

If you get that right, then your P2P system will be voted in - by a landslide.