High-Tech Companies Face Challenges Keeping Pace With New Cloud-Based Business Models

High-tech companies are struggling to transform their traditional business models of shipping hardware products or packaged software to more complex business models of providing new services based on cloud computing, new Accenture research has found.

The research revealed that many senior leaders lack a clear understanding of how the complexity of these new business models impacts operations in nearly every function of their companies. This disconnect will become increasingly important because most leading technology firms expect to generate revenue growth through five or more business models by 2015, several of which are likely to be based on cloud, the research concluded. These companies typically have two-to-three business models today.

Accenture recommends that companies take these steps to help overcome the challenges:

-- Determine how many business models they have today and which new ones are needed to capitalize on market opportunities;

-- Identify and build distinctive capabilities needed to deliver business in the cloud;

-- Develop a segmented operating model to deliver distinctive service capabilities with the right customer experience and economics; and

-- Implement a governance model for making key resource allocation and other critical decisions.

More information on CRM and Cloud Computing can be found at www.CRMindustry.com.