Cloud sourcing and innovation: slow train coming?

Abstract

Purpose: Although cloud computing has been heralded as driving the innovation agenda, there is growing evidence that cloud is actually a "slow train coming". The purpose of this paper is to seek to understand the factors that drive and inhibit the adoption of cloud particularly in relation to its use for innovative practices.Design/methodology/approach: The paper draws on a composite research base including two detailed surveys and interviews with 56 participants in the cloud supply chain undertaken between 2010 and 2013. The insights from this data are presented in relation to set of antecedents to innovation and a cloud sourcing model of collaborative innovation.Findings: The paper finds that while some features of cloud computing will hasten the adoption of cloud and its use for innovative purposes by the enterprise, there are also clear challenges that need to be addressed before cloud can be successfully adopted. Interestingly, our analysis highlights that many of these challenges arise from the technological nature of cloud computing itself. Research limitations/implications (if applicable):The research highlights a series of factors that need to be better understood for the maximum benefit from cloud computing to be achieved. Further research is needed to assess the best responses to these challenges. Practical implications (if applicable):The research suggests that enterprises need to undertake a number of steps for the full benefits of cloud computing to be achieved. It suggests that collaborative innovation is not necessarily an immediate consequence of adopting cloud computing.Originality/value: The paper draws on an extensive research base to provide empirically informed analysis of the complexities of adopting cloud computing for innovation.

A Confirmatory Investigation of the Factors Influencing the Cloud Adoption in Local Government Organisations in Australia

“…Tornatzky (2005) suggested that complex technologies could not be adopted successfully and thereby it could not bring the expected efficiency to the organization. Also, complexity factors expected to influence Cloud adoption decisions negatively, and people may not have confidence in the technology because it is relatively new to them (Hsin-Pin et al 2014, Willcocks 2013.…”

“…Raza et al (2015) explained that controversial view of the fear of job losses in the minds of the workforce is one of the major factors that have contributed slow growth of Cloud computing. Willcocks et al (2013) believes that the adoption of Cloud technology beyond its IT operational benefits could be problematic and slow the adoption, and infrastructure failures could have contributed negatively to rethink about the decision to adopt this technology.…”

Contractual and Relational Governance, ICT Skills and Organization Adaptations, and Cloud Computing Benefits

“…The wide range of benefits that CC can offer to firms has been extensively described in previous literature [2,4,12,13,15,22,24,31,32]. These benefits include reduction of the cost and improvement of the quality of the ICT support of firm's processes and activities, conversion of ICT capital investments to operating costs, ubiquitous access to ICT infra-structure using various kinds of devices (e.g.…”

“…ICT processes, roles, etc.) [27,31,32]; since the existing ICT skills and internal organization are currently aligned with the 'on-premises' paradigm, they have to be changed and adapted to the needs of the new CC paradigm, in order to exploit the full potential of it, and gain significant benefits.…”

“…Cloud Computing (CC), if properly exploited and managed, has a high potential to offer significant benefits to firms, which concern both reduction of the ICT and in general the operating costs of the firm, leading to efficiency gains, as well as facilitation and support of innovation activity [2,12,24,29,31,32]. However, these benefits are not straightforward and automatically generated.…”