ICT and Digital Strategic Decision

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12 August 2021: TechnologyOne released a significant report based on a six-month long study into the economics of Cloud computing and SaaS among Australian organisations.  

The study, which was independently conducted by IBRS and Insight Economics, explored the tangible costs associated with migrating to the Cloud, with both IaaS and SaaS journeys investigated. An economic analysis of the data collected through 67 in-depth case studies with CIOs and C-suite executives, additional interviews, and over 400 respondents, revealed a $224bn economic dividend for the Australian economy, prompting TechnologyOne to term the report "too big to ignore".

Why it’s Important.

While the report is aimed at policymakers and strategies looking at the macro-economic impact of technology, it also details the costs and benefits of Cloud adoption by industry sectors, providing IT strategists with realistic benchmarks. 

When developing the methodology for the report, IBRS and Insight Economics took a ‘no free lunches’ approach to data collection. Unlike other reports on the benefits of Cloud migration, the study took into account the costs of, and time needed for transition, including training, change management, skills (and skill shortages) and the fact that many organisations will need to retain on-premise environments to support legacy and home-grown applications for years to come. In addition, only productivity benefits that had been measured were included in the analysis. 

As a result of the evidence-only approach to the study, the ‘direct returns’ on Cloud migration detailed in the report are both far lower and far more realistic than those found in studies conducted in the USA and Europe.

The report may be accessed here: https://toobigtoignore.com.au/

Who’s impacted

  • CEO, COO, CFO, CIO
  • Cloud migration teams

What’s Next?

The conservative approach to the study, the rich data collected, means that organisations still struggling to make a business case for SaaS have practical benchmarks and economic modelling to call upon.

Related IBRS Advisory

  1. The economic impact of software as a service in Australia
  2. Get board agreement to the Cloud strategy

Conclusion: A simple Google search can provide access to thousands of change management frameworks, methodologies and theories. Many relate specifically to digital transformation; however, methods such as the Knoster model cover organisational change more broadly across culture, vision, resources and action planning.

The frequency of unsuccessful organisational change or transformation is on the rise1. While there are many organisational change theories, this paper demonstrates the connection between a particular theoretical framework (Knoster model) and how an organisation can translate these theories into successful organisational activities and practice.

This advisory paper will step through the six dimensions of change within the Knoster model for managing complex change and how you can use this to easily investigate and diagnose the overall health of your organisation’s change or transformation agenda, and to identify practical steps to stay on track.

There is expected to be moderate growth between 2017 and 2025 which will have an impact on business operations.

Conclusion: The business climate over 2017-2025 will present new conditions that are more challenging. Based on various forecasts, the eight-year period will see moderate growth and that will have a direct impact on business operations.