I was at a friends house having dinner recently.
One of my fellow guests was a guy who had worked in the banking industry, back in the mid-sixties. In those days, all of the branch records had to be written up by hand, which meant the doors closed at 3pm to enable the transactions of the day to be recorded. There was no automation in sight and calculation machines were used only to double check mental arithmetic. Roving teams of inspectors would turn up at the branch unannounced as the doors closed, would conduct rapid forensic analysis on the books to find error and fraud – and woe betide anyone who found themselves the culprit behind anything that was discovered.
In those days, I guess the skills of bank staff were slewed in this direction, people who could do manual book keeping and checking – and who could do it fast and well. Of course as the sixties closed out, the banks did then begin to engage in the deployment of IT, enabling automated processing and record keeping. Fast forward to today and whilst there is a lot of bank staff still engaged in customer service, they each service a higher number of customers than would have been humanly possible in the manual sixties. The cost of servicing each customer has been reduced and new services can now be offered that were simply not possible in the manual world .
Of course it has not been a free ride and banks have had to engage a lot of IT support and development staff, never mind the physical hardware, to do all of this. The banks got the automation story, that software investment enables costs to be reduced, but also opens up many new possibilities. But they needed to ove to a different skill mix in their organisation to make this transformation possible.
I was with a client recently who realised that the new cloud system they were about to start using, was no longer about people manually installing infrastructure. Using the automation features of the cloud enables systems to be created, amended and deleted at the request of a button on a screen. The client realised that from this point on, the support of their virtual infrastructure was now (mostly) about software development, which means their support team will need new skills and approaches.
No longer was the provision and maintenance of compute power just about manual tasks. Instead it was to now about software development.
They would now need a different mind set to get the maximum out of their virtual infrastructure and fully reap the benefits of automation in the process. I observed to the client that they were at the same point as the banks in the sixties, where a different skill mix is required to enable the enterprise to to do more than it can today. It was spooky that the next day, I was having dinner with someone who was in a bank in the manual sixties.
Implementing a cloud system helps with problems enterprises face today. But – and this is the most interesting thing – it opens up a world of possibilities for tomorrow. The parallels between where this client is at and my fellow dinner guest from the bank in the sixties, seems compelling to me.
It also highlights that implementing a Cloud system is far more than just installing new hardware and software. It goes deeper into the enterprise, providing opportunities to rethink how things are done today. And enterprises need to embrace the impacts on the skills needed to support the compute power in this new world and that new ways of thinking are needed to do this. But this transformation enables huge transformational opportunities for the enterprise.
It was interesting hearing first hand how banking was done in the sixties. But I cannot imagine there are many people who would wish to go back to that manual time, either as a worker or customer. Clients embracing Cloud technology rarely look back either – but only if they challenge themselves to really transform.