How can cloud infrastructure help CPG companies and banks stay ahead of the curve

In the past few years, the adoption of cloud computing has been gaining momentum, particularly in India. Business benefits aside, support from the government has aided its exponential growth. A 2022 survey conducted by leading experts reveals that four in every five enterprises are looking to increase their cloud budgets in the next 12 months.

The COVID-19 pandemic played a big role in driving cloud adoption. The report reveals that 78 per cent of IT companies and 53 per cent of healthcare and BFSI companies have increased their dependence on cloud since the beginning of the pandemic.

According to another industry report, as many as 71 per cent of CPG brands are mature users of cloud or in advanced stages of cloud adoption as compared to 68 per cent across all other industries. CPG (Consumer Packed Goods) enterprises in very advanced stages of cloud adoption have been driving ROIs of as much as 108 per cent from such initiatives.

Statistics indicate that Indian BFSI companies are becoming amenable to embracing the cloud after initial hesitation, due to the sensitivity of the data they hold, and the Hybrid Cloud model is expected to grow 39 per cent in the financial services sector in the coming five years. So, while the CPG industry is leading the way in cloud adoption, the BFSI sector shows a lot of potential for growth.

Embracing cloud as a response to the pandemic

The retail sector, of which the CPG industry is a part, was among the worst hit in the pandemic, with manufacturing and supply chain in tatters. Unsurprisingly, it was also one of the quickest to adapt to the ever-evolving situation.

Benefits of cloud in CPG industry

1. Deeper engagement with customers at low cost

Customer relationship economics are at the heart of CPG business. Cloud computing has made it possible for brands to target customers with personalised marketing basis their buying patterns and preferences. Even employee experience can be transformed with cloud. For instance, a self-service portal with an integrated chatbot that allows customized search, and consolidates queries and cases against IT, HR, workplace, and finance and other departments can boost employee experience. 

2. Better supply chains and last-mile delivery

Cloud computing has also made it possible to identify and fix potential problems in supply chains. Last mile delivery, a major issue for FMCG companies, is being resolved through cloud computing. AI-powered solutions are helping shop owners in small towns to connect directly to FMCG brands without having to depend on third party wholesalers.

3. ROI-enabled growth with relatively smaller up-front IT investment

 Cloud solutions are empowering companies to expand into newer markets with increased agility. Cloud computing makes it possible to efficiently deploy IT solutions at scale, so companies can achieve business goals with smaller upfront investment in IT.

4. Shorter innovation cycles

Cloud computing also increases accessibility. So, employees outside of IT teams can innovate and build customised solutions for their specific needs. Take the example of one our clients, an American multinational food, snack, and beverage corporation, that implemented a cloud-based platform to transform their IT service management. The platform eliminated friction between processes, technology, and data by utilizing the enterprise reporting capabilities available in the solution. It also reduced manual effort extensively, thus driving innovation and efficiency in network operations at scale.

The need for BFSI to adopt cloud 

There is much the BFSI sector can learn from the CPG industry in cloud adoption. Banks must recognise that cloud isn't just a technology, but a way to access cutting edge software applications via the internet. It can be used by banks for a variety of purposes – from CRM and data analysis to fraud detection and more.

Benefits of cloud in BFSI

1. Enhanced security

Cloud technology has been designed for a data-centric universe. So, service providers tend to be on their toes when it comes to detecting security loopholes, making cloud computing more secure than most on-prem services.

2. Faster processing speeds

Legacy processing methods tend to store data in silos, limiting the way data can be used. Cloud computing enables centralising data capture, storage, and interpretation, making it possible for banks to access faster, richer, and more precise data-led insights, to drive performance.

3. Better customer insights 

Data-led insights can empower banks to deliver customised financial services and gain an edge over upstart fintechs. A cloud-based platform provides anytime-anywhere access to real-time data that can transform the customer experience. For example, one of our clients, a leading US regional bank, was using an on-premise customer service tool that caused a delay in the resolution of customer complaints due to lack of integration with their email system. Moving to a cloud-based complaints management system helped them automate their complaints management system. 

4. Reduced costs

Cloud technology takes out the costs for on-prem infrastructure, its maintenance, security updates, etc., thus reducing costs. It also possible to decrease or increase service provision scales, thus optimising costs.

The benefits of cloud infrastructure are too many to list, whether for CPG or BFSI companies. But as the world embraces data like never before, cloud computing won’t be a nice-to-have choice, but rather a dire need. And the companies that will thrive are ones who will embrace the future before it arrives.

The article has been written by Arvind Raman, Global Head - Service Management, Infosys