Digital transformation must be a priority in a cloud-first world

As the UK enters an uncertain economic future, the issue of falling productivity is once again center stage. Since the 2008 financial crisis, studies measuring how much output is produced per hour or worker have been constant disappointments when compared to the country’s global counterparts. According to the latest reports from the Office of National Statistics, UK productivity rose by 0.4 percent between July and September 2016. However, this figure is still far below the 2.1 percent average being achieved before 2008.

In response, UK Prime Minister Theresa May has announced plans to launch a national industrial strategy aimed at creating a prosperous post-Brexit Britain through the development of STEM skills investments in science and innovation, and infrastructure upgrades across every sector and in every corner of the country. With this plan the UK government has sent a clear signal: organizations of every size and within every industry must prioritize digital transformation if they are to succeed in a cloud-first world.

Forward thinking businesses have already adopted the use of cloud-based apps and services in order to boost employee productivity. As the number of tools and technologies employees use in the office continues to increase, organizations are starting to witness a change in how people work. With more organizations investing in the latest technologies, the UK might be on its way to overcoming tech-related productivity slumps.

Mastering Productivity with Choice

Okta’s latest Businesses @ Work report reveals the apps that UK organizations are adopting to get work done. According to the data, 38.7 percent of Okta’s UK customers use Microsoft Office 365, making it far and away the most popular cloud app in the UK. In contrast, only 13.8 percent are using G Suite. But the minority -- the companies using G Suite -- are more likely to select newer, more innovative apps as they build out their cloud ecosystems. This begs the question: are Office 365 customers missing out on the latest and greatest cloud apps? Okta’s data suggests, in many cases, they are.

According to Okta’s data, G Suite customers tend to use more cloud apps (29) than Office 365 customers, who use an average of just 22. This is in part due to the way in which Microsoft builds its stack, bundling multiple products together -- including Dynamics CRM, Yammer, Skype, Azure, and OneDrive for Business, which customers can access via the single Office 365 app. Thus, users’ app count is reduced, as is the scope for innovation and choice. This is the case in the UK more than the US, where the reliance on Office 365 is even higher.

G Suite customers are also more likely to select more best-of-breed apps as they build out their cloud ecosystems, and tend to adopt applications that are more customizable in nature. 56 percent of G Suite customers are using Amazon Web Services, 50 percent use Salesforce, 39 percent use JIRA, and 33 percent use Slack, compared to Office 365 customers -- just 14 percent of O365 customers are using Amazon Web Services, 37 percent use Salesforce, nine percent use JIRA and only 17 percent use Slack. Office 365 customers are more likely than G Suite customers to adopt established apps like Box (36 percent vs. 17 percent) and Mimecast (14 percent vs. six percent).

Building the Future For the UK Workplace

Studies show that businesses adopting cloud technologies are more likely to grow faster and generate more revenue, achieve 26 percent higher profits than their competitors. That’s promising for the UK, as British organizations are quickly adopting multiple apps and services to build the future world of work -- ranging from software development, to office infrastructure, collaboration, social media and email -- supporting both the worker and the customer experience in the process.

Not only are employees at UK organizations using more enterprise apps, but they’re using more personal apps to be productive at work. This year, Okta saw the lines between work and personal identities are blurring. Data shows 56 percent of apps used by its customers are not provided by IT, which is up from 48 percent last year. LinkedIn, Facebook, Amazon, Twitter and PayPal lead the pack of those personal apps.

While the increasing use of personal apps and devices at work used to be a major corporate battleground, organizations are now starting to embrace a more employee-friendly approach. They are facilitating secure employee access to all apps, both corporate and personal, and many are encouraging the use of any apps that will help employee productivity.

The Key to Effective Digital Transformation

Within the new world of cloud and mobile, organizations in every industry -- and in every country -- need to consider a digital transformation in order to stay competitive and address the challenge of productivity. By embracing the cloud and all it has to offer, they will find new ways to increase productivity, communicate with their staff and engage with their customers and partners. However, when every device and app that connects to the cloud has an individual account attached to it, the need for companies to ensure they can control the flow of data is amplified. As organizations adopt new technologies to grow their business across new lines and different regions, many must ask themselves, "how should we go about building and managing these new connections?" Thus, the issue of identity comes to the forefront.

Increased adoption of cloud technologies, paired with effective identity management, will enable UK organizations to improve customer experience, generate new revenue and strengthen security. In order to become truly digital, businesses will need a foundation for secure connections between people and technology -- whether those people are employees, contractors, partners or suppliers, and no matter what kind of technology they’re using at work. Once organizations achieve this, they will have the capability to capture opportunities that will help drive digital business growth -- ultimately becoming technology companies in their own right, boosting their productivity and that of their country as a whole.

Phil Turner, VP EMEA, Okta.

Published under license from ITProPortal.com, a Future plc Publication. All rights reserved.

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