Finnish companies can be considered leaders in using cloud services (Cloud computing - statistics on the use by enterprises, 2018), but there is still a restricted amount of information available on cloud transformation in the Finnish context. That is why we launched a survey to study cloud adoption and its status in large Finnish organizations. In addition, the study concentrated on the factors affecting cloud adoption and its success. This article concentrates on the adoption status and gives a brief overview of the affecting factors, which will be more thoroughly represented in the following articles.  

Cloud adoption status within Finnish organizations

The survey reached 32 IT decision-makers and specialists from various organizations, which represent both public and private sectors. Especially industries related to manufacturing, information and communication, as well as finance and insurance received good coverage. 30 of the respondents mentioned that their organization had already taken cloud services into use. The two public sector organizations were still evaluating the possibility to adopt or had already proceeded to implementation. The high adoption rate supported the view that Finnish companies have been quick in moving their processes to cloud.

The adoption of cloud services, by definition, can be accomplished by taking any kinds of services into use. Therefore, the respondents were asked to share what kinds of processes had already been moved to cloud in their organization. The responses highlighted especially collaboration, human resources, customer relationship management, reporting and planning, sales and marketing. 20 out of 32 organizations had already moved at least four different kinds of processes to cloud.

To understand the progress of cloud adoption in the target companies, the survey also examined the processes that are likely to be moved to cloud during the next 1-3 years. The results indicate that many of the organizations will be concentrating on moving their enterprise resource planning systems to cloud in the near future, along with processes related to marketing, human resources, billing and invoicing.

Factors affecting cloud adoption

Based on TOE-framework (Tornatzky & Fleischer 1990), there are three contexts affecting the adoption of new technologies such as cloud services: technology itself, organization adopting it and surrounding environment.

Inside these three contexts there are various factors, which impact on adoption has been studied. The survey discovered five factors under these contexts to have an effect on taking cloud services into use.

The respondents saw that the relative advantage and complexity of the technology, competence and readiness of the organization, management support and partner pressure have a considerable impact on the adoption of cloud services. In addition, the respondents highlighted that data privacy, security, service location, lack of standards, dependence on provider and lack of control over service affect the adoption of cloud services negatively.

Factors affecting cloud adoption success

Based on information systems success framework, there are different variables that together form the basis for the success of cloud adoption: system, information and service quality, intention to use, use, user satisfaction and net benefits. In addition, there are separate factors that affect these variables and therefore have an impact on the adoption success. (Petter et al. 2013)

Out of these factors, organizational and project characteristics received most attention in the survey. The state of information technology in the organization, trust towards cloud services, organizational competence, as well as culture and policies were considered the most valuable factors. On the other hand, factors related to the views of individuals received least attention. These factors consisted of users’ attitudes and expectations, relationship between users and developers, and actions to motivate.

Summary

Moving to cloud is no longer for early adopters only. The adoption of cloud services is also likely to continue as organizations start taking next steps by, for example, moving their ERP systems into cloud platforms. Moving from on-premise systems to cloud is not a simple task and it has broad and significant effects on the organization as a whole.


We will continue to discuss the factors affecting cloud adoption and its success in more detail in our upcoming articles. Don't hesitate to contact us if you would like to receive more information about BearingPoint's Cloud Transformation Services: 

Kaisla Pakkanen
Business Consultant, BearingPoint

Annukka Tirronen
Senior Manager, Cloud Transformation Services, BearingPoint


Author: 

Kaisla Pakkanen, Business Consultant, BearingPoint

Sources:

Petter, S., DeLone, W. & McLean, E. R. (2013). Information Systems Success: The Quest for the Independent Variables. Journal of Management Information Systems, 29(4), pp. 7-62.

Statistics Finland. 2018. Use of information technology in enterprises. Available in Finnish: https://www.stat.fi/til/icte/2018/icte_2018_2018-11-30_kat_003_fi.html

Tornatzky, L. G. & Fleischer, M. (1990). The Processes of Technological Innovation. Massachusetts, US: Lexington Books.

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