European businesses are facing challenges in fully leveraging their cloud investments. Technology leaders must understand that successful digital transformation relies on three key pillars: people, processes, and tools.
While the industry focuses on prioritizing people in the adoption of new technologies like AI, the same principle should be applied to cloud migration. It is essential to equip teams with the right tools to unlock their full potential.
Recent research conducted by Deloitte highlights that digital transformation is seen as crucial by 74% of UK leaders. However, organizations are struggling to realize the complete value of this transformation. Despite the fact that 95% of European companies are benefiting from cloud computing in some way, most of the advantages are not fully realized and remain limited in scope. In fact, 82% of organizations admit that the impact of cloud on their operations is either restricted or only partially recognized.
The human factor plays a crucial role in this scenario, as the primary obstacle to migration often lies with people who have emotional attachments to their existing tools. The focus has been disproportionately on technical aspects rather than on integrating people, processes, and tools. Only one-third of European companies are monitoring non-IT outcomes from their cloud investments, missing out on valuable insights into how technology can empower their workforce.
The Impact of Technology-First Approaches on People
The repercussions of neglecting the human element are significant. According to research by McKinsey, European companies are five times more likely than their US counterparts to pursue an IT-centric approach to cloud migration, focusing primarily on migrating existing workloads without transforming how people work.
This approach may explain why many organizations are not seeing substantial returns on their investments. Migration presents an opportunity to review methods and processes while ensuring that teams have the necessary tools to work efficiently. Without considering both the human impact and technological enablement, even the most technically proficient migration may fail to deliver the desired outcomes.
Developing a People-Centric Migration Strategy
To bridge the gap between technology investment and value realization, organizations should:
- Invest in Workforce Development
The cornerstone of successful cloud transformation lies in strategic workforce development. Research indicates that leading organizations maintain a balance of 60% technical and 40% operational roles when building their digital teams, typically adding 25 new digital roles per 1,000 workers. This goes beyond just hiring new talent – it involves creating a comprehensive approach to skill development that encompasses technical training, soft skills enhancement, and clear career advancement pathways.
Organizations should identify skill gaps early, implement mentoring programs, and establish strong partnerships with educational institutions to ensure a continuous flow of talent capable of driving and sustaining the transformation.
- Implement Inclusive Transformation Strategies
Successful cloud migration requires genuine organizational commitment that goes beyond technical implementation. Organizations must actively involve stakeholders at all levels, understand existing workflows and pain points, and identify informal leaders who can advocate for change.
Ongoing communication about the progress of migration combined with transparent feedback channels helps address resistance proactively. It is important to recognize that employees are likely emotionally invested in existing tools and processes. By providing clear timelines, support structures, and opportunities for staff to influence the transformation process, organizations can convert potential resistance into active engagement.
- Evaluate Success Beyond Technical Metrics
The true value of cloud transformation goes beyond technical metrics and cost savings. Organizations should track employee satisfaction and engagement levels alongside traditional technical key performance indicators (KPIs). This includes monitoring the adoption rates of new tools, time saved through improved processes, and achievements in skill development. Business impact measurements should encompass customer satisfaction, improvements in process efficiency, and innovation metrics.
Long-term value indicators such as employee retention rates, internal mobility, and team productivity offer a more comprehensive view of transformation success. This holistic measurement approach ensures that organizations capture both immediate benefits and long-term value from their cloud investments.
- Cultivate Strong Partnerships
Effective cloud transformation necessitates partnerships that extend beyond conventional vendor relationships. Organizations should select partners based on cultural alignment, expertise in change management, and their ability to transfer knowledge effectively. These partnerships should have clear governance structures and shared KPIs that encompass people development alongside technical goals. Success stories such as HP’s 70% increase in productivity and Siemens’ 50% enhancement in efficiency demonstrate how robust partnerships can expedite transformation while establishing enduring organizational capabilities.
Looking to the Future
The potential value of executing cloud migration effectively is substantial – up to $3 trillion for Global 2000 companies that successfully move beyond basic cloud adoption. However, realizing this value requires a fundamental shift in approach. As organizations progress on their cloud journeys, the key message is clear: success hinges on the integration of people, processes, and tools. Cloud migration is not just about transferring workloads; it is about establishing an environment where all three elements collaborate to drive meaningful transformation.
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