Cloud Computing Technology and Its Impact on Business and Purchasing

Deciding to move your business to the cloud is an important decision that will affect every aspect of your business and its processes. Let’s take a look at how cloud computing technology can impact businesses. 

How Does Cloud Technology Work?

The cloud itself is simply a mother term to describe the internet. It can explain many things from the sharing of resources to software through a network of computers. All that’s needed to run cloud based software is the computer itself and the network computers, servers, and data storage systems take care of the rest. 

Cloud-based software is becoming more popular among businesses both large and small because you don’t need to store multiple pieces of equipment in or near your facility. 

How Does Cloud Affect Businesses?

Here are some of the advantages that businesses will gain when they use cloud computing technology to run their business:

Scalability

Businesses can scale efficiently using cloud. As the business grows, they can expand their infrastructure and capabilities without forecasting server requirements to buying extra storage space. All you have to do is adjust your subscription with the service provider, and you’re done. The service provider will then allocate more space according to your particular requirements to improve operational efficiencies. 

Cloud technology also enables businesses to scale down to promote efficient utilization of existing resources.

Customer Experience

With the cloud, businesses can access information that helps them better serve their customers at any time of the day and from any location. Cloud connects employees to buyers via devices. Improving the customer experience is easy as many companies also have a self-service portal that allows buyers to checkout on their own without the need to call or email in an order. These portals also have customer resolution centers that can be set up so that if a customer has a problem, they can report it on their own time.

Flexible Working

With cloud computing, employees can now work remotely. Virtual desktops can access files from anywhere and at any time. Organizations can even provide secure remote access to all of its remote employees. With this, there is a reduced risk of virus outbreaks and other security threats. Remote employee productivity can also be monitored in real-time so that businesses no longer have to worry about whether their employees are actually working. 

With all of the benefits cloud computing offers employees and businesses, you can also hire talent from anywhere around the world. There are no geographical barriers stopping you from finding the best person for the job. Collaboration and communication tools are also available so that teams can work together no matter where each individual employee is.

Access to Customers

Cloud helps businesses increase market adaptability to serve diverse customer groups across different devices. 

How Cloud Computing Does Impact Procurement? 

With all of the benefits that cloud computing allows a business, one of the best is the automation of the procurement system. This process is typically not something for companies to get excited about until they get their checks from buyers. However, tedious tasks can now be automated using cloud computing to make the process easier and more efficient.

Here are just a few of the benefits of cloud-based procurement software. 

Track Cash Flow

You can track your cash flow efficiently so that you don’t end up losing money. Businesses using manual processes can lose money because of errors on a spreadsheet, but with procurement software, there is absolutely no way to miss a step. Purchase orders can be converted to invoices so that there’s no chance you can end up paying or receiving less that you promised.

Buyer Relationships

Your buyer relationships will improve drastically with e procurement software. While humans can make mistakes that end up costing your business and your customers time and money, the automated software will not. You need to maintain an excellent reputation for on-time payments and following the guidelines of your contract, two things that procurement software will help with. 

Your ROI

While at first, there may be a slight learning curve, once the employees all learn the new software and begin using it every day, the procurement process becomes much easier and efficient. When your employees are able to do more work during the day than they have in the past, you are saving money, and the stakeholders will thank you. For example, we have created a simple tool that you can use to calculate your ROI by moving from a paper-based system to a cloud-based system. Go ahead, give it a try.

Who Is Affected By Cloud Computing?

Human Resources and Talent

Your most valuable resource is people. It’s always important to consider how cloud computing will impact each of your employees. You need to make sure that your employees have the skills to run the new environment and how you will manage those that do not. There will be a delicate transition period. However, to keep up in a competitive marketplace, difficult decisions will have to be made. 

Procurement software is relatively easy to manage once you get the hang of it. However, you may find that some employees are unable to use the new purchase order system and are stuck in their ways when it comes to using manual spreadsheets to manage the procurement process. Remember, purchase order software is all about saving your business money by making people more effective and efficient. Therefore,  before you start implementing the new system, make sure that your employees know how and when the changes will occur. 

Finance Department

The financial part of this equation deals with cost savings. When your employees are more efficient, they are able to tackle tasks and do so much more with their workday. When your business runs smoothly, you will see more work getting done for less money spent. 

It’s also important to remember that your ROI may not be immediate, especially if you have to train some of your employees to use the software. You may have days of moderate activity until employees are confident in their ability.