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How Public Clouds Can Unlock AI Innovation

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For the second dimension, innovate, we assessed revenue uplift (the margin impact of revenue increases) and cost savings from business operations. We quantified the potential value of more than 700 use cases involving advanced analytics, IoT, and automation. Here, we categorized use cases as not requiring public cloud and as accelerated or unlocked by public-cloud technology, attributing respective share of value to public cloud. The output was a detailed estimate of value by dimension, benefit driver, and industry.

Cloud accelerates and, in some instances, unlocks implementation of the latest technological and digitization solutions in the back office, such as analytics-driven accounting and talent management. Organizations that shift to public cloud unlock additional value by repurposing and reskilling their workforce to focus on higher-value tasks, such as developing products and services that address customer demands. Cloud can allow a reduction in manual effort through API-based models, standardization, and automation (for example, IaC).

The next dimension involves harnessing cloud to accelerate or enable innovation using technologies such as advanced analytics, IoT, and automation at scale. These provide companies with ways to pursue innovation-driven growth and optimize costs for business operations. The range of potential value is large and reflects the fact that not all organizations have the cloud maturity to achieve a similar degree of innovation. We analyzed 700 use cases to determine the impact of cloud in unlocking value. The value was allocated across a range from 100 percent in select cases, 30 percent in the bulk of cases, and null in a small number of cases (Exhibit 4).

A business case for cloud should be grounded in a clear understanding of cloud economics across cost savings (rejuvenate) and business acceleration (innovate). It should be adjusted to transformation risks and prioritized by business domain, and it should include the required resource allocations and sequencing of tasks. One effective approach in developing business-innovation cases is to analyze and articulate the value that can be unlocked or accelerated by cloud. For example, the business-innovation case for an insurer that can refresh its analytical underwriting models twice as fast on public cloud as on a traditional, on-premise infrastructure should calculate both the improvements in return on investment and the value of freeing up capacity for additional innovation. Although the details will vary by organization, we find a holistic, hard-headed business case can help companies gain consensus across functions and build organizational momentum to hit targets within two years.

The emerging technologies, especially machine learning and artificial intelligence, will critically underpin future products and services across different sectors, from manufacturing to retail and public sector services. More firms are looking for innovative ways to implement the innovations, pushing massive growth in the global AI market, which is anticipated to reach up to US$9880.4 million by 2023, confirmed Techradar.

Taking the Next StepNot every organization will need the power, capacity and speed of the organizations cited in this article. But virtually every organization will need to have a plan and strategy to use their data efficiently, comprehensively and intelligently to empower business innovation and digital transformation. To learn more about how your organization can unlock the value of your data, please visit Hewlett Packard Enterprise.

Accelerating digital innovation across business functions requires foresight and agility to navigate dynamic market conditions. Enterprises must unlock processes and data in their applications and enable users to personalize their work in context. In addition, having the right content available to customize cloud applications is a must. These elements are critical to evolve operating models.

The pace of innovatio

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