Cloud Computing

Jan. 1, 2020
The cloud is the next evolutional step in the use of the Internet.
Last month I suggested that some aftermarket executives are unclear if not uncertain about cloud computing and have little idea of how to use “the cloud” strategically in a time when it is becoming essential. 

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The cloud is the next evolutional step in the use of the Internet.  “Cloud” is a euphemism to describe a decentralized network that enables on-line users to interact with companies and/or one another effortlessly and with minimal hardware and software.  Instead of having to have software and databases loaded locally on a computer, users in a cloud environment can connect and interact with computers as well as less complex devices like smart phones, ultrabooks, readers and tables.  And their devices need only have minimal “apps” instead of the complete programs that are required on PC’s.  Additionally, information like catalogs and product data are not required locally on the users device.  The most current versions of both the software and the information that the software queries are resident in the cloud.  This means that user is always using the most up to date version of the software and is getting the most accurate data within it. 

So, what does all that “geek speak” mean in terms of the aftermarket?  Why does top management need to know anything about the Cloud?  This clearly is an IT responsibility isn’t it?  The answer:  yes and no.  There are at least two reasons for C-types to be familiar with the cloud concept.

In a typical company today, IT cuts across all disciplines, but it primarily is used tactically and seldom pressed into strategic duty.  For example, manufacturing needs a new process flow; sales needs a new communication tool; marketing needs to track a program; all important elements but all tactical in nature.  Why is this?  Is it that when strategic uses of IT have been evaluated in the past the costs were not commensurate with the return?  Has there been a need to build too much infrastructure?  To add too much headcount?  If so, this is very reason top management needs to be familiar with the cloud concept.

Cloud computing provides what IT always needs: more capacity and more capabilities. The cloud can render both on the fly.   Not only that, it can do so without an investment in new hardware, training of new personnel, or licensing new software. The second biggest benefit Cloud computing brings to the table is that it’s services can be had on a subscription or pay-per-use basis.  The cloud can provide a real time extension of a company’s existing IT capabilities in a variety of capacities.

For example, cloud computing deployed with an aftermarket sales force can facilitate the implementation of advanced channel partner relationship management.  Sales people can intact with software and information in the cloud to do everything from examining sales histories, performing inventory management, tracking and controlling warranty claims to assisting with category management, reverse logistics, inventory optimization and vendor managed inventory.  When third party data for vehicle registrations like Polk or Experian and consumption data like that from IMR and/or NPD is paired with sales histories, ordinary salesmen can use simple software to become seasoned category managers.  Not to mention that simple automation of call and expense reporting is fast and affordable.  And it can all be performed with the sales force using lightweight, convenient and low cost tablets, instead of PC’s. 

However, the most important reason for being cognizant of the cloud and what it offers has to do with interaction with service technicians.  That story is where we will pick up this discussion next month.

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