Industry Cloud Platforms: Unlocking innovation through tailored cloud solutions

Cloud computing has been with us for over 15 years, but we have barely scratched the surface of its potential.[1] Industry Cloud Platforms (ICPs) are cloud-based solutions targeting the specific needs of industry verticals that generic and traditional solutions do not adequately address. These solutions encompass cloud services, applications and data models tailored to meet industry-specific requirements. ICPs also leverage cutting-edge technologies like AI, ML, NLP to serve industry-specific applications. This is why we believe that for many companies, ICPs will help move the cloud from a Technology Disruptor[2] adoption profile to Innovation Facilitator[3].

Consider a concrete example: Google Cloud, in partnership with Renault, created a virtual 3D car conception system, allowing to visualise the car before it is physically built. Engineers can use this 3D model to test different designs and manufacturing scenarios. Alongside this, predictive machine learning algorithms analyse large amounts of data from the manufacturing process to anticipate potential issues, such as parts that may fail or potential production inefficiencies. By fixing these problems early in the development cycle, car manufacturers reduce errors, gain time and save money. The solution carries the promise to reduce the time to market for new vehicles by up to 30%, thus creating a competitive advantage through differentiating technology capabilities.

The ICP landscape is diverse. Hyperscalers dominate the scene. It is part of their strategy to become more industry relevant and increase their value proposition, either directly or through their marketplaces. Niche vendors also exist and propose industry specific solutions, that may raise attention. A compelling example is Guidewire which specialises in Property & Casualty insurance software and technology, their platform automates parts of the underwriting process, claims handling, and payments using cloud and AI technology. This helps insurance companies work faster, reduce human errors, and improve customer satisfaction.

In the very near future, ICPs will have the potential to:

• allow faster pace of democratisation of differentiating capabilities,
• change the pace of innovation trough closer proximity between tech giants and companies, with System of Differentiation[4] shifting quicker to Systems of Records[5] and releasing (in theory) more capacity to focus on Systems of Innovations[6] to address emerging business requirements, business opportunities, or even new business models.

When considering ICPs, companies may adopt different ways, that may complement:

• The opportunistic way: understand your strengths and weaknesses starting from a Business Capability Map, creating a link between business strategy and underlying applications and technologies. Identify the areas that need investment and explore the ICP market to identify solutions that may help solve business challenges. Companies taking this approach may need to consider the proactive way if no ICP solution suits.
• The proactive way: same here, start from the idea or Business Capability Map to identify areas and systems that need reinforcement and require significant investment. If no suited ICP solution exists, an option is to partner to build a suited solution faster and at lower cost.

Before taking these steps, some prerequisites need to be in place:

• Know your needs: have the right articulation between the Business Strategy, Business Capability Map and Pace Layered Application Strategy[7],
• Monitor the market: know and monitor the market with a deep understanding of the ecosystem of solutions and their offerings. Companies should stay updated on the latest solutions available,
• Gain the required agility: cover your basics and build the right foundation to easily onboard ICP solutions e.g. a suited cloud strategy, the right operating model, a composable architectural framework and the right cybersecurity approach and mindset to properly balance security & innovation.

Are you ready?

We remain dedicated to delivering independent, client-centred services with an unbiased approach, free from commercial affiliations with ICP providers, ensuring a clear and objective perspective on the ICP market. By consistently prioritising our clients’ best interests, we offer impartial guidance throughout your ICP journey. We warmly invite you to connect with our team to explore how we can support your needs.

[1] Cloud facilitates the wide distribution of platform business concepts that allow use of technology as a fundamental component of business model

[2] Cloud disrupts non-cloud, data center-oriented computing styles and topologies

[3] Cloud facilitates the wide distribution of platform business concepts that allow use of technology as a fundamental component of business model

[4] Typically related to business capabilities that enable unique company processes or industry-specific capabilities

[5] Typically related to business capabilities that enable unique company processes or industry-specific capabilities

[6] New business capabilities that are built on an ad hoc basis to address emerging business requirements, business opportunities, or even new business models

[7] Avoid one-size-fits all strategies by segmenting business capabilities by rate of change. Three categories—innovation, differentiation, record—simplify the conversation about application investment