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BSBSMB412

Introduce Cloud Computing Into Business Operations

Learner Guide

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TABLE OF CONTENTSThis is an interactive table of contents. If you are viewing this document in Acrobat, clicking on a heading will transfer you to that page. If you have this document open in Word, you will need to hold down the Control key while clicking for this to work.TABLE OF CONTENTS............................................................2LEARNER GUIDE..................................................................3I. REVIEWING CLOUD COMPUTING NEEDS FOR THE BUSINESS..6

1.1 The Fundamentals of Cloud Computing............................................61.1.1 Understanding Cloud Computing...................................................................................6

1.1.2 Types of Clouds......................................................................................................................................6

1.1.3 Benefits of Cloud Computing.................................................................................................................8

1.1.4 Security, Data Loss Prevention, Privacy, and Online Tech Support.....................................................10

1.2 Key Terms and Concepts Used in Cloud Computing.......................111.2.1 Cloud Services.......................................................................................................................................11

1.2.2 Additional Cloud Services....................................................................................................................12

1.2.3 Scalability and Virtualisation................................................................................................................13

1.2.4 Risks with Cloud Computing................................................................................................................14

1.2.5 Opportunities from Implementing Cloud Computing...........................................................................14

1.3 Reviewing Current Computing Resources and Their Use to Meet Business Requirements...................16

1.3.1 Research Cycle.........................................................................................................................16

1.3.2 Audit Process.........................................................................................................................................17

1.3.3 Resources for Small Businesses............................................................................................................18

1.4 Identifying and Discussing Future Computing Needs.............................................................................20

1.4.1 Policies and Procedures.........................................................................................................................20

1.4.2 User Computing Needs.........................................................................................................................21

1.4.3 Organisational Computing Needs.........................................................................................................22

1.5 Collating Information and Summarising Computing Needs Specific to the Business............................25

1.5.1 Developing a Proposal..........................................................................................................................25

2.1 Investigating the Services Available in the Cloud...................................................................................28

2.1.1 Tailoring Needs to Services..................................................................................................................28

2.1.3 Legislation.............................................................................................................................................31

2.2.3 Identifying Opportunities and Risks Associated with Cloud Computing.............................................39

3.2 Preparing a Budget to Meet the Short and Long-term Goals.........573.2.1 Budget vs Cash Flow.............................................................................................................................57

4.1.3 Develop a Training Strategy.................................................................................................................65

4.1.4 Coaching and Support...........................................................................................................................66

BSBSMB412 Learner Guide Version No. 1.1 Australian College of Business and Accounting

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LEARNER GUIDEDescriptionBSBSMB412 - Introduce cloud computing into business operationsThis unit describes the skills and knowledge required to understand the fundamentals of internet computing and cloud services. It involves undertaking a basic review of business computing needs and identifying options for introducing cloud computing services into a small business or work area in an organisation.

It applies to individuals who use problem-solving skills and take responsibility for adopting and promoting approaches to improve business operations.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Click here for more details

About this Unit of Study IntroductionAs a worker, a trainee, or a future worker you want to enjoy your work and become known as a valuable team member. This unit of competency will help you acquire the knowledge and skills to work effectively as an individual and in groups. It will give you the basis to contribute to the goals of the organisation which employs you.

It is essential that you begin your training by becoming familiar with the industry standards to which organisations must conform.

These units of competency introduce you to some of the key issues and responsibilities of workers and organisations in this area. The units also provide you with opportunities to develop the competencies necessary for employees to operate as team members.


https://training.gov.au/Training/Details/BSBSMB412

This Learner Guide CoversTopic 1 Reviewing cloud computing needs for the business

The fundamentals of cloud computing Key terms and concepts used in cloud computing Reviewing current computing resources and their use to

meet business requirements Identifying and discussing future computing needs Collating information and summarising computing needs

specific to the business

Topic 2 Investigating cloud computing services to meet business needs

Researching to establish the fundamentals of available cloud computing options

Seeking assistance from specialist advisors Undertaking a cost-benefit analysis Preparing a business case for implementing a cloud-based

computing system

Topic 3 developing the necessary plans to implement cloud computing into the business

Establishing and prioritising short and long-term goals for a cloud-based computing system

Preparing a budget to meet the short and long-term goals

Topic 4 Providing support to implement the plan Communicating and promoting the plan for a cloud-based

system Providing appropriate training and coaching to relevant

personnel


IntroductionCloud computing as a concept might sound new but, it has been around since the 1960s. Infrastructure and human capabilities have evolved to make cloud computing one of the fastest moving technologies in recent years.

Organisations require faster computing power and are turning to options that do not have the infrastructure investment and software and development problems.

For a business to survive today, they must be agile in their business processes to offer customers the service they expect; a business that lags behind its competitors cannot survive for long.

Cloud computing offers the agility and cost savings required by organisations, and the offerings fit all types of businesses from micro businesses to multi-national organisations. Regardless of the size of the business they can leverage economies of scale to provide cost-effective and reliable services.

The introduction of cloud computing into a business is currently using traditional hardware and software (with all their expense and fallibility), needs to be done carefully. Depending on the type of cloud-based system and volume of data it is required to manage the implementation of a new system can be completed with the help of change management experts. This assists with reduce any resistance to the introduction of cloud computing by the employees, customers and other relevant stakeholders.


I. REVIEWING CLOUD COMPUTING NEEDS FOR THE BUSINESS

1.1 The Fundamentals of Cloud Computing

Before you can consider which cloud-based system is most suitable for the specific needs of a business, it is important to understand- What is cloud computing?

Cloud computing, or ‘the cloud’, is an internet-based computing solution where applications, servers, storage and platform are shared and accessed by multiple users from a single system. It allows users to access their computer data and applications using other computers and/or from mobile devices.

1.1.1 Understanding Cloud ComputingTraditional computer systems consisted of mainframes (the 1960s) that needed to be housed in large secure facilities with cooling systems that were often equivalent in size to a large shipping container. Over several decades this infrastructure has evolved into smaller servers that could be accommodated on the premises of the business, but the resources were intense and expensive. Each user had a hard drive on which programmes were installed which included a license for each installation.

Data storage was challenging to manage as users protected their work with passwords on their hard drives or removable storage devices. This meant that data was often outdated and was never the same from one user to the next; which could result reconciliations and financial reports not being accurate.

By having a centralised cloud-based data storage system which other applications can access, eliminates the need for users to store data on their own devices. Security is also centralised and ensures that company information and data are safe from malware and hackers. This also means that only one installation of security software needs to be maintained.

Obtaining cloud-based computing systems and programs is conducted via third-party providers. These providers provide the infrastructure, software, and applications at a reduced price to a wide range of clients to take advantage of economies of scale. Users only need an internet-connected device to access the relevant application and data to complete their task.


1.1.2 Types of CloudsTypes of clouds are divided into Public, Private, Hybrid, and the lesser-known Community clouds. Each type has its own privacy, security, and management requirements.

Public Cloud: When operating in a public cloud it means that all the infrastructure (network) is provided by the cloud service provider. As a customer or user of the public cloud application, there is no physical control of the infrastructure. Public clouds use shared resources and are the most vulnerable to various attacks such as hackers and malware.

Hybrid Cloud: This is the use of both private and public clouds. For example, an organisation may use a public cloud to interact with customers but keep their data secured on a private cloud.

Private Cloud: Private clouds are those where the infrastructure is used solely by a single organisation. It can still be remotely located and hosted but is not shared by others. This is a more expensive option, but it does give the user physical control of the infrastructure.

Community Cloud: This is where the infrastructure is shared between organisations including shared data. An example of a community cloud is a local government where clouds can be located both on and off the premises.


PublicAccessed by allShared resources

HybridUses both, e.g. Dropbox - application is available to all (public) but data stored securely (private)

PrivateRemote locationOwned by one client

TYPES OF CLOUDS

Community: Shared by organisations or communities with similar interests or which are governed by the same policies, e.g. government

departments

1.1.3 Benefits of Cloud Computing Although cloud computing has been around for some time, business has been slow in its adoption for the perceived risks the new technology and business models posed. But with service providers proving that they can manage those risks, cloud computing is gaining more acceptance and business is moving rapidly towards adopting the various service offerings.

Cloud-based systems are constantly evolving, and some of the key benefits of implementing these systems include:

Improved security using hybrid and private-shared clouds

Standardisation of data that can be shared between clouds and platforms

Data consolidation from different clients will be available to more users

Increase in service providers with better value for money offerings

Faster and more reliable applications improve mobility and thus productivity

More extensive selection of apps allows businesses to change business models rapidly and cost-effectively

Open source services will reduce overall cloud service costs

Hybrid clouds offer better security and choice for companies to manage their own data

New applications will use cloud services exclusively thereby driving more users and traffic to cloud technologies

Pay-for-what-you-use save companies operating expenses and scalability

New areas for IT professionals to upskill

Improved processes and the ability to access workloads from any location on any device will reduce resistance to change within an organisation


Service providers can leverage their offerings to a broader audience thereby reducing costs for each client

Further Reading

Read the article published in the International Journal on Recent and Innovation Trends in Computing and Communication about the Emerging Trends of Cloud Computing.

Activity 1

1. What are the four (4) types of cloud-based systems which are available?

2. List five (5) benefits of implementing a cloud-based system in your workplace

1.

2.


https://www.scribd.com/document/346877765/Emerging-Trends-of-Cloud-Computing

https://www.scribd.com/document/346877765/Emerging-Trends-of-Cloud-Computing

To view the answers to this activity, click here.


1.1.4 Security, Data Loss Prevention, Privacy, and Online Tech SupportThe following are different fundamentals of cloud computing:

Security Through encryption, password access, security codes and additional security questions needed to access a cloud-based system, there is a higher level of security in place. This minimises the risk of individuals accessing unauthorised information. By storing the data in the cloud, there is no longer a need to house paper-based documentation which further reduces the risk of security breaches regarding information and data.

Data loss prevention Cloud-based computing services automatically save data. For example, if operating a cloud-based accounting system such as Xero, data is saved as soon as it is entered. This drastically reduces the loss of data due to hardware or software issues on computers and laptops etc. There is no longer a need to have data stored in several backups in case of equipment malfunction.

Privacy Data in a cloud cannot be accessed without the appropriate authorisation. This ensures that information is maintained securely to only those with permission to retrieve personal and business data, e.g. payroll officers accessing personal information to complete group certificates, process payroll, process superannuation payments, etc.

Online technical support Technical support for cloud systems can be accessed directly online through chat lines. Most cloud systems also have a help section which gives access to guidance and manuals on how to complete specific tasks in the service being provided. Helplines are also available. This reduces the need to wait for an IT or service provider to come to the site to aid, minimising wastage of time and money.


1.2 Key Terms and Concepts Used in Cloud Computing

Cloud computing like all other types of computer technology has a language which even the basic of users will need to understand based on the specific services which are provided. It is worthwhile exploring these services before deciding which type of cloud-based system is the most appropriate to meet the needs of the business.

1.2.1 Cloud ServicesDue to the rapid growth and popularity of cloud-based computing, there are several different models and strategies which have been developed to meet the needs of different types of users.

The foundation services are based on the following:

IaaS (Infrastructure as a Service)Infrastructure as a service contains the building blocks for cloud-based I.T. systems. It provides access to specific networking features, computers and data storage which can be either virtual or on dedicated hardware. This type of service has the highest level of flexibility and control over the I.T. resources and like those being used on current systems. In summary an IaaS provides:

o The foundation of the stack of three services


SaaSSoftware

PaaSPlatform

IaaSInfrastructure

End-userGoogle Docs Xero MYOB

QuickBooks

DevelopersGoogle App Engine MS Azure

System AdministratorsAWS (Amazon Web Service) Go

Grid

o Infrastructure to run PaaS and SaaS

o Service provider ensures security and availability

PaaS (Platform as a Service)Platform as a service takes away the need of infrastructure such as hardware and operating systems. Instead, the focus can be on the deployment and management of the cloud-based applications which are used. Efficiencies are increased as the need to deal with resource procurement, software maintenance and patching are no longer an issue. In summary an PaaS:

o Provides the framework on which to build other applications

o Enables cost-effective and quick testing of applications

o Decreases time to deploy new applications or updates

SaaS (Software as a Service)Software as a service is a complete product which is run by the service provider (e.g. MYOB). SaaS is often referred to as an end-user application. This system does not require the end user or customer to deal with the infrastructure or maintenance of the applications. The service provider is responsible for all maintenance such as system updates etc.

1.2.2 Additional Cloud ServicesThe various layers of the cloud stack deliver a range of additional services which are offered by providers, all of which decrease the costs to clients to run similar services and technologies. The following is a brief overview of several additional cloud-based services which organisations can establish as part of their business operations:

STaaS (Storage as a Service): Providers provide storage facilities on a subscription basis (pay for what you use) when clients need additional space, have backup issues with their data, or are unable to secure their data adequately or have uninterrupted access to it.

SECaaS (Security as a Service): Providers offer focussed cloud security services on a subscription basis to secure data and applications from attack. Provider manages updates and ensures implementation of security measures seamlessly. A form of SaaS but is limited obtaining information.

DaaS (Data as a Service): Clients access a data repository that is managed by the provider. The same data is available across


applications to ensure reliability, which speeds up account reconciliations and customer research. Most common uses of DaaS are ERP and CRM systems.

TEaaS (Test environment as a service): Providers offer specialised platforms for developers to test their applications. Front-end usability reduces the need for a programming language, i.e. the platform translates keystrokes into a script.

DTaaS (Desktop as a Service): Software that allows the user access to the application from any location and on any device. The front-end duplicates desktop user interfaces. Also known as virtualisation.

APIaaS (Application Programming Interfaces (API) as a Service): Like PaaS, APIaaS provides developers with technology and other resources to develop APIs; it is also a cheap alternative for companies who have developers but don't have the budget for infrastructure.

CaaS (Communication as a Service): Communications systems delivered to clients via the internet, e.g. video conferencing or VoIP.

BPaaS (Business Process as a Service): A form of SaaS that provides standard business processes for clients to plug into their current business processes, such as travel expense claims.

1.2.3 Scalability and VirtualisationKey components of successful cloud-based computing require both virtualisation and scalability to suit the needs of the end user.

Virtualisation duplicates or simulates an environment. Within cloud computing, virtualisation essentially means that a user can access an application, data, or an operating system from any device from any location and it will look the same on all devices.

Virtualisation is the process of creating a virtual environment on an existing server to run your desired program, without interfering with any of the other services provided by the server or host platform to other users. The virtual environment can be a single unit or a combination of many such as operating systems, network or application servers, computing environments, storage devices and other similar environments.

Virtualisation makes it possible to run multiple operating systems and multiple applications on the same server at the same time. It makes


servers, workstations, storage and other systems independent of the physical hardware.

Scalability means that companies pay as they use applications, data, or infrastructure and they're not tied to licensing fees. If the organisation needs to employ an additional five consultants for three months to help with their year-end processes, no additional license fees will be applied. Companies can also identify new service offerings quickly, without having to go through a development and testing cycle; businesses are becoming more agile in their business models.

Further Reading

Find out what the difference is between cloud computing and virtualisation.

1.2.4 Risks with Cloud ComputingMany businesses are concerned about making the transition towards cloud computing because of real and perceived risks. With the increase in providers and services, businesses need to ask the right questions and ensure that their providers meet their requirements. We will address this in more detail in Section 2.3.3

Further Reading

Understand the risks involved when appointing a cloud service provider.

1.2.5 Opportunities from Implementing Cloud ComputingCloud computing provides many opportunities for individuals and businesses. With the ever-changing computing needs, new job roles and careers will be being created within the workplace.

For businesses, there are opportunities to improve existing processes through the implementation of a cloud-based system to ensure that a quality and efficient service is provided because:


https://www.calyptix.com/research-2/top-5-risks-of-cloud-computing/

https://www.itweb.co.za/content/z5yONP7EapV7XWrb

1. IT personnel can grow into new directions in cloud computing with new cloud computing job titles increasing with the growth of the cloud.

2. Organisations can move their CAPEX (Capital Expenditures) to OPEX (Operating Expenses) thereby reducing the need to depreciate expensive infrastructure.

3. There is a reduced environmental impact due to fewer physical devices being manufactured and disposed of at the end of their lifetime. Also, it is easier and cheaper to centralise the infrastructure.

4. Computer rooms have become redundant, so organisations can reduce their floor space, thus their monthly overheads.

5. Infrastructure and software costs are a fraction of the costs of purchased machines and licensed software.

6. Data storage can grow with the company without having to invest in additional servers.

7. Data analytics provide organisations with current results without them having to invest in resources.

8. Applications and access to applications are scalable and agile with minimal cost and downtime.

9. Enterprise standard and current security and protection software managed by one provider.

10. Organisations can share data and development costs and rent out unused storage space to reduce own costs.

11. Acquired knowledge within an organisation could be leveraged as a new service.

Activity 2

1. List and describe three (3) cloud-based services which can be utilised in business.

2. What is meant by the term virtualisation?

3. What is meant by the term scalability?


4. List three (3) risks which need to be considered when choosing a cloud-based system.

1.

2.

3.

4.


1.3 Reviewing Current Computing Resources and Their Use to Meet Business RequirementsTo accurately determine the computing needs of the business it is essential that all current computing resources are reviewed. It is important to look at the business operations and determine what the business expects from cloud computing and how they can be addressed effectively.


Further Reading

Choose the right hardware and software.

1.3.1 Research CycleWhen investigating to determine the viability of cloud computing for a business it is a simple four-step process based on the Plan, Do Check, Act (PDCA) cycle. Document the strategy to be completed for the review and develop an implementation strategy for acceptance by management.

The following is an overview of how you can implement the PDCA cycle when reviewing the current and future computing needs of the business.


http://www.business.vic.gov.au/marketing-and-sales/eCommerce-and-digital-technology/how-to-build-a-website/choose-the-right-hardware-and-software

STEPS

Plan

Identify the need for cloud computing and sources of information

Review current resources: financial, human, skills, hardware, software

Analyse future needs of employees and business processes and align with company vision and mission (conduct a separate review if needed and incorporate)

Consult with subject experts, management, industry leaders

Define action plan

Do Implement the action plan Measure effectiveness and progress of each action

Check Check if the action plan is effective through before

and after outcome comparisons Audit outcomes

Act Identify failures and rectify Learn from success and implement in failed

processes

1.3.2 Audit ProcessAudits are an excellent way to review current resources and establish any additional plant or equipment which may be required to establish a cloud-based system. The following are some of the key areas which could be included in a resource audit.

Conduct an audit of physical machines and compare them to the I.T asset register – laptops, servers, desktops, printers, tablets, presentation equipment, modems, network points and cabling.

Conduct an audit of current software – backend and user software. Identify which packages are in use, how many users access an application and compare with licenses and costs.

Investigate and compare documented processes with actual procedures.

Identify issues with current infrastructure and user requirements and updates or versions.


Investigate data usage and categorise by traffic intensity and department access.


Interview users to gain insight into their requirements and what their understanding and acceptance are of cloud computing.

By establishing what is already in place and any additional resource needed, may ensure a smooth transitional process towards cloud-based computing.

1.3.3 Resources for Small BusinessesThe Australian government provides a wide range of resources for small businesses interested in cloud computing options. Some private or semi-government organisations provide information and access to cloud computing specialists.

Following is a selection of articles and other resources for small businesses contemplating migration to the cloud:

Australian Government: Communications Department

Cloud Computing and Privacy: Small business factsheet

Salesforce Ten advantages of cloud computing for small businesses

CPA Australia IT Checklist for Small Business

Dynamic Business The benefits of cloud computing for small businesses

Total Technologies Group Small Business IT Services Sydney

ZD Net Australian government unveils national cloud strategy

Queensland Government: Business Queensland

Grants for innovation

AU Entrepreneur Centre Small Business Startup and Assistance Cloud Platform

The Balance Why Cloud Computing Is Ideal for Small Businesses


https://www.thebalance.com/why-cloud-computing-is-ideal-for-small-businesses-2948273

https://www.thebalance.com/why-cloud-computing-is-ideal-for-small-businesses-2948273

https://auentrepreneurcentre.org/about/

https://auentrepreneurcentre.org/about/

https://www.business.qld.gov.au/running-business/growing-business/becoming-innovative/innovation-grants-support/grants

http://www.zdnet.com/article/australian-government-unveils-national-cloud-strategy/

http://www.zdnet.com/article/australian-government-unveils-national-cloud-strategy/

https://www.totaltechnologies.com.au/

http://www.dynamicbusiness.com.au/small-business-resources/growing/the-benefits-of-cloud-computing-for-small-businesses-03022014.html

http://www.dynamicbusiness.com.au/small-business-resources/growing/the-benefits-of-cloud-computing-for-small-businesses-03022014.html

https://www.cpaaustralia.com.au/~/media/corporate/allfiles/document/professional-resources/practice-management/it-checklist-for-small-business-new.pdf?la=en

https://www.salesforce.com/au/blog/2017/06/10-advantages-of-cloud-computing-for-small-businesses.html

https://www.salesforce.com/au/blog/2017/06/10-advantages-of-cloud-computing-for-small-businesses.html

https://www.communications.gov.au/sites/g/files/net301/f/small-business-privacy-factsheet.pdf

https://www.communications.gov.au/sites/g/files/net301/f/small-business-privacy-factsheet.pdf

Activity 3

1. Explain the PDCA cycle

2. Outline the steps which should be taken when conducting an audit of current computing resources. Including hard and software.

1.

2.



1.4 Identifying and Discussing Future Computing NeedsWhen discussing the future computing needs of the business, it is important to look at the policies and procedures which are impacted by any changes to current systems and processes.

1.4.1 Policies and ProceduresAs part of determining future needs conduct an audit to identify gaps in current policies and procedures in relation to cloud computing. It is important the organisational policies and procedures factor the following:

IT policies

o Procurement (must be in line with organisational procurement policy with a focus on the acquisition of IT goods and services).

o Security policy outlines who owns data and how that data is secured and preserved.

o Information management policies detail how company data is retained, backup protocols, destruction methods of hardware and software.

o Usage policies manage how employees use hardware and which software they can access. Includes allowable internet searches and use of business emails and other communication channels.

o Project and IT change management policies focus on the introduction of new technologies and rollout protocols.

o IT training policies focus on training for software in use in the company, which employees are eligible, and how service providers should be appointed (sometimes in conjunction with procurement policies)

Organisational policies

o Procurement policies detail the procurement of goods and services (determine if there are a preferred supplier list and the procedure to place a provider on the list).

o Privacy policies govern how employees must treat the organisation’s data and proprietary information.


o Non-disclosure agreements protect sensitive data and proprietary information, such as product specifications, patents, etc. May not apply to all staff.

o Finance policies govern the financial department.

o Customer policies deal with customer-related issues such as goods returns, refunds, complaint management, etc.

o Human resource policies cover a range of employee management issues and incorporate all the anti-discrimination laws.

Further Reading and Resource

The Michalsons web page Types of IT Policies provides a framework to identify IT-related issues to incorporate into cloud services.

1.4.2 User Computing NeedsThe organisational computing needs may be vastly different to each of the individual user needs. While the cost-effectiveness of the systems to run the business is always a key operational consideration, it is important the user interface is easy to use by the relevant personnel. If the system is too technical for example, outcomes will not meet the expectations which have been established by the organisation.

Younger employees are comfortable with new technologies and accept that cloud computing as a part of everyday life. Trying to sell the benefits of cloud computing to older employees might be more challenging because they distrust some of the new technologies. This may especially be the case regarding the loss of control over data systems and being concerned about the security of the company's information. It is therefore important to listen to any concerns which are raised by all relevant personnel.

Some key points which may be addressed with users to reduce their concern may include the following:

Accessing software can be from anywhere and on any device, allowing for flexible working hours and location. Downtime is also reduced because updates happen in the background and don't impact users.


https://www.michalsons.com/focus-areas/information-technology-law/types-of-it-policies

https://www.michalsons.com/focus-areas/information-technology-law/types-of-it-policies

Application user interfaces are easier to use, especially on mobile phones. This gives employees another option to opt for flexible working hours and locations.

Data and privacy are more secure when industry standard protocols are used to reassure management and users of the safety of keeping sensitive information in the cloud.

Further Reading

Find out how to ensure employees understand cloud security and how to manage it with policies and procedures.

1.4.3 Organisational Computing NeedsWhen identifying and discussing the future computing needs of the business, it is essential to establish the purpose of each application. What are the end-to-end services which need to be addressed?

It is important to look at the functions which need to be performed by the applications and ask key questions including:

How is the cloud system hosted?

What information needs to be accessed and stored? Address all departments in the business to determine the types of information which will be stored in the cloud such as customer information, credit card details, financial reporting etc.

Does the application service all the needs? In some instances, it may be necessary to have one application such as MYOB or Xero to manage the financial aspects of business operations and other applications to manage marketing and customer service operations.

What are the financial impacts of changing systems? This could be both positive and negative. For example, not having to purchase upgrades to systems on a regular basis. A benefit financially is that most cloud applications charge a monthly subscription fee which makes it easier to prepare costings and budgets.

As with any change to existing systems and processes, it is important to identify and address any organisational concerns with management by using researched facts. Completing a cost-benefit analysis (refer to Section 2) should be conducted.


https://www.securitymagazine.com/articles/86133-catering-to-happy-employees-with-cloud-computing

Some of the key findings by businesses when researching the benefits of a cloud computing system have included the following:

CRM and ERP systems are elastic and scalable to the business’ needs. Accessing industry systems reduces software costs and eliminates dedicated human resources.

Allows access from multiple locations and devices. This allows for greater flexibility and use and minimises the loss of data as it is stored directly in the cloud.

Data storage and archiving are managed by the provider who uses industry standard protocols to ensure the security of data, minimal downtime, and disaster recovery processes.

eCommerce platforms are readily available with a comparable reduction in total cost of ownership. Enhancements are seamlessly allowing the company agility and flexibility in what they offer their customers.

Cloud email applications enable organisations the flexibility for users to access shared address books and calendars from any device. Cloud email servers reduce the need for human resources to manage the email servers which the company also no longer needs to host on-premises. The cloud email server is also subject to the same provider security and disaster recovery protocols.

File management enables users to upload, sync and share files across devices from any location. File sharing privileges are set by the owner of the data. File sharing has security and compliance risks and should be managed carefully by the IT department. Examples of cloud file sharing services are Dropbox, Egnyte and Google Docs.

Scalability of cloud systems affords organisations the ability to provide almost-instant additional services or access to greater computing power when there is increased demand (month end or when a retailer has a major sale). This ability enhances customer satisfaction and with a positive impact on profits.

Cloud accounting applications incorporate legislation seamlessly to ensure clients adhere to business and taxation laws and accounting standards. Many applications connect to bank feeds to give a live status of the company's cash flow. Most popular Australian accounting software are MYOB, Xero, and QuickBooks.


Further Reading

Read a review comparing MYOB, Xero, Saasu, and QuickBooks with one other.


https://www.growthpath.com.au/Business-IT/review-of-myob-liveaccounts-and-xero-accounting-in-the-cloud.html

https://www.growthpath.com.au/Business-IT/review-of-myob-liveaccounts-and-xero-accounting-in-the-cloud.html

Activity 4

1. List three (3) policies and procedures which need to be reviewed or developed which are specific to cloud-based computing.

2. Discuss two (2) user needs which need to be considered when researching cloud-based computing to suit the business.

3. List and explain three (3) benefits of introducing cloud computing into the business.

1.

2.

3.



1.5 Collating Information and Summarising Computing Needs Specific to the BusinessOnce all the information on current and future computing needs of business has been gathered it needs to be presented to the relevant stakeholders for review.

When presenting the information, it is important to ensure that the information is clear and any financial calculations regarding costs for implementation of a new application.

1.5.1 Developing a ProposalWriting a proposal is like producing a report. A proposal needs to define a problem (need for cloud-based computing) and provide the solutions to resolve it.

Having collated the information you need to summarise the computing needs of the business develop a proposal that:

Details all the facts. Do not provide opinions and provide your findings based on the research which is conducted. If necessary research similar plans or projects and cite them to emphasize their success. Or in turn, highlight their failings and provide solutions which address the weaknesses which were identified.

Provide an analysis of the research you conducted and try to demonstrate the possible outcomes if cloud-based computing is implemented.

Discuss the financial considerations which need to be factored in the purchase and implementation of a new system. All costings need to be realistic and include timelines for each stage of the implementation.

Include information on how the new system will be monitored and reviewed to determine its success and meet the objectives which were established.

Ensure that you revise your proposal and check all grammar and formatting. This is a business document and must be presented concisely. Make the presentation engaging by including graphs and images if it suits the purpose and has someone else review the document before it is submitted. Feedback is an excellent method for critiquing and fine-tuning a document before it is finalised.

A proposal should include the following elements:


Executive Summary: State the rationale for putting the proposal into effect, and summarise the proposal. (This allows a decision maker to quickly get the gist of the proposal, hence the name.)

Statement of Need: Detail the necessity of the plan or project.


Project Description: Explain the specifics of the plan including how it will be implemented and evaluated

Budget Analysis: Provide and explain how the plan or project will be financed and categorise and annotate operating expenses.

Organisation Details: If the proposal is being submitted to an outside party, provide information about the organisation including the mission statement, the stakeholders and the scope of the products and services.

Conclusion: End the proposal with a summary of the key points based on the research which was conducted.

When developing a proposal for cloud-based computing needs the following should be considered:

Develop a matrix of the everyday needs expressed by users and the organisation and summarise these in the proposal document.

Use the matrix when doing the Cost Benefit Analysis (CBA) and the business case.

Detail how the concerns will be addressed when investigating what the providers have to offer in their services and how the needs will be incorporated into the CBA.

List the current software and how the users feel about using them, and whether cloud applications will be acceptable to them.

Work with the communications team to ensure employees are well prepared for cloud computing and how it will benefit them personally and the business.

Address security and privacy concerns to alleviate user and management fears about data safety.

Detail the provider protocols for using industry standard firewalls and disaster recovery management policies.

List all risks and how these will be dealt with when choosing a provider. Conservative organisations might want to control the implementation by deploying one service, consolidating, testing, evaluating, then moving onto the next step. If this is not a viable method, ensure that you list the benefits of the proposed schedule over that of the conservative approach.

Remember to keep the proposal concise and stick to the facts. It is important to address all areas of the business which will be impacted by the change.


Activity 5

1. Explain the key elements which should be included in a proposal for a cloud-based computing service.

2. List and outline three (3) needs which must be addressed in the proposal for a cloud-based computing service.

1.

2.



II. Cloud Computing to Meet Business Needs

2.1 Investigating the Services Available in the CloudHaving researched the business needs (Section 1.4), it is important to conduct a comprehensive appraisal of the services from the applicable providers and compare short-term to long-term savings and benefits. (This is discussed in more detail in Section 2.3).

2.1.1 Tailoring Needs to ServicesThe cloud-based computing which is selected for the business must be tailored to suit the needs of the business and improve efficiencies.

Where possible it is necessary to identify areas of cost savings such as have cloud stack spread across various locations.

User requirements form the basis on which applications will be most acceptable and effective they are once the application is deployed. These requirements should align with the organisation's policies and procedures (refer to Section 1.4.1 and 1.4.2), for instance, users might prefer to work from home or have flexible hours, but the business policies don't currently allow for that.

Further Reading

Learn how to manage cloud services on a budget and how to be accurate in resource estimates.

Security and privacyWhen meeting with the specialist providers, it is important to address any security and privacy concerns and review each provider’s protocols for using industry standard firewalls and disaster recovery management policies. Data is transmitted to remote servers, so it is normal for businesses to have reservations about switching to cloud-based applications.

Protection of data is the most challenging aspect of cloud computing. So, when tailoring the needs of the business against the various cloud-based services on offer, it is important to consider the following:


https://www.informationweek.com/cloud/9-tips-for-managing-cloud-services-on-a-budget/d/d-id/1330217?page_number=9

https://www.informationweek.com/cloud/9-tips-for-managing-cloud-services-on-a-budget/d/d-id/1330217?page_number=9

Data storage - ensure that data stored in the cloud can only be accessed with the appropriate authentication and authorisation levels for those who need to access the data.

Confidentiality - is a key concern so the applications you use will need to have protection against attacks. Ask the provider what measures they have in place to ensure the confidentiality of the data which is stored in the cloud. To maintain confidentiality data understanding and its classification, users should be aware of which data is stored in the cloud and its accessibility.

The integrity of the information - will rely on the passwords and access which are established by the business. Do not store passwords anywhere which can be accessed and used by others if systems are hacked, or there is unauthorised access from within the business.

Availability - is the most important issue in several organisations facing downtime as a major issue. It depends on the agreement between the provider and the client.

Data access - mainly refers to the data security policies which need to be established when cloud computing is implemented. In an organisation, the employees will be given access to the section of data based on their company security policies. The same data cannot be accessed by the other employee working in the same organisation. Encryption techniques are used to ensure only those who should see specific data are given access. To secure the data from the unauthorised users the data security policies must be strictly followed. Since access is given through the internet for all cloud users, it is necessary to provide privileged user access. The user can use data encryption and protection mechanisms to avoid security risks.

Data Breaches – is always an important security issue. Large volumes of data from various users are stored in the cloud which provides opportunities for malicious users to enter the cloud making the entire cloud environment prone to an attack. A breach can occur due to various accidental transmission issues or due to an insider attack. Check with the provider to establish the security measures they have implemented to minimise the risk of this occurring.

2.1.2 Seeking Assistance from Specialist Advisors


To ensure that the service you implement meets the needs of the business it is essential that assistance is sought from specialists within the industry. We discussed the types of cloud computing services which are on offer in Section 1.2. But how do you know if the service is appropriate for the business? What steps can be taken to ensure that the business will be provided with the technical support which may be needed to implement and manage the cloud computing system?

Research cloud computing specialists who have services which fit with what the business requires. For example, there are several major specialist suppliers of cloud-based accounting services such as Xero, MYOB, QuickBooks, Kashoo and Outright. Each of the specialists in accounting services mentioned above offers a range of products to cater for the basic needs of a sole proprietor to more complex services needed to manage the operations of large corporations.

When seeking assistance from specialists regarding the services needed for the business, such as cloud-based accounting, consider the following business protocols:

Attribute Explanation

Competency Evaluate the provider’s capabilities to deliver the service as advertised and compare to the business needs.

If possible seek feedback or reviews from their existing customers to find out if they are happy with the service.

Capacity Evaluate the capacity of the provider to offer the service and how quickly they can respond to market influences.

Confirm the security and privacy protocols of the service

Confirm the availability of training and ongoing support.

Determine if they have resources and appropriate processes to address internal issues such staffing stability and security.

Commitment Ensure that the provider is committed providing high-quality standards through industry/international


standardisation and certification. Evaluate their capacity to be committed to the

organisation's needs, especially at Startup of the new cloud system and during the initial period by providing ongoing support.

Control Establish and confirm the controls and who is responsible for managing the service. Is it a public, private or hybrid service?

Financial liquidity

Research and evaluate the financial health of the provider. How many customers do they have, what is their reputation etc.?

Price Include a cost-benefit analysis of each provider to determine if their services will benefit the business.

Reliability Confirm the terms of any contract with the provider to ensure that are reliable and will deliver its service consistently – time, cost, quality.

Environment Review the provider’s commitment to environmental sustainability and how it interacts with the community.

Communication

Ensure the provider has procedures in place to communicate in the event of a crisis that affects clients. Confirm communication channels and schedules. Chat lines, direct emails and notifications directly from within the service. E.g. Xero provides notifications directly on the site when a user has logged in.

2.1.3 LegislationThere are various regulatory requirements which must be adhered to when operating a cloud system in a micro or small business. The difficulty with this is that laws vary from country to country. In Australia, there are steps being taken to introduce specific laws to assist with monitoring where information is located.

There are laws which are already in place in Australia which governs data retention, archiving and record-keeping. Ensure providers can incorporate the requirements applicable to the organisation if they are not in Australia.


Users of cloud-based computing must also meet legal requirements and these need to be established and incorporated into organisational policies, procedures and practices

Some of the key legislation which may have a direct impact on the use of cloud-based systems include:

Privacy Act 1988 – is the law which regulates how personal information about individuals is handled. Personal information which is identifiable such as names, dates of birth, addresses, medical history, family details etc.

Further Reading

Learn more about rights and responsibilities under the Privacy Act.

Copyright Act 1968 – is the legislation which oversees the rights of the owner or licensee of literacy, artistic or dramatic work. Information gathered and stored when accessed from other sources must be referenced appropriately or have approval from the original source. This law is very complex, and if materials from other sources are to be accessed and used in the cloud, it may be necessary to seek approval or advice from a legal authority.

Electronic Transactions Act 1999 – with increasing use of electronic transactions the Act was established to recognise the importance of the information contained in these transactions and the need for confidentiality. If electronic payments are being made, it is necessary for the cloud system to have the appropriate encryptions etc. to ensure the security of the sensitive financial data and information.

Freedom of Information Act 1982 – provides members of the public with access to official documentation from government bodies and agencies. When operating a cloud-based system, it’s important to ensure that any information which has been extracted has been done so having obtained the appropriate permissions. This information must be stored securely as it could be sensitive and contain personal data pertaining to clients or employees.

It is also important to confirm that the provider can incorporate other legislation, such as tax records, statutory reporting and workplace health


https://www.oaic.gov.au/privacy-law/rights-and-responsibilities

and safety into the services which are provided in the cloud-based computing which is chosen.

1. When tailoring the cloud-based service to the needs of the business what are three (3) security and privacy issues which need to be addressed?

2. Discuss the business protocols which need to be identified and confirmed when using the services of specialist advisors.

3. List two (2) legislation which directly impacts how a business can use cloud computing.

1.

2.

3.



2.2 Undertaking a Cost-benefit AnalysisThe idea of Cost-Benefit Analysis originated in 1848 by a French engineer, Jules Dupuit. From this early economic accounting principle, the Federal Navigation Act of 1936 was introduced into the USA which required that U.S. Corps of Engineers carry out projects for the improvement of the waterway system when the total benefits of a project exceed the costs of that project. Thus, the Corps of Engineers had created systematic methods for measuring such benefits and costs. The engineers of the Corps did this without much, if any, assistance from the economics profession. It wasn't until about twenty years later in the 1950's that economists tried to provide a rigorous, consistent set of methods for measuring benefits and costs and deciding whether a project is worthwhile.

2.2.1 Cost-Benefit Analysis (CBA) ProcessA cost-benefit analysis is an analytical tool which is used to determine which project has more benefits. This is conducted by preparing a comparison of the expected benefits and costs of each project. If more than one option is available, the plan with the greatest benefits is the most desirable.

A CBA collates all the planned costs for a project and quantifies each of the tangible benefits. From there, the key financial performance metrics such as return on investment (ROI), net present value (NPV), internal rate of return (IRR) and payback period are calculated.

Once all calculations are completed, the costs associated with taking action are subtracted from the benefits which would be gained. When determining a project’s viability, the general rule is that the costs should be less than 50% of the benefits and the payback period should be twelve months or less.

When determining the most appropriate cloud-based service, the initial cost and return on investment should also be considered; therefore, a thorough analysis that incorporates tangible, as well as intangible factors, needs to be done.

To complete basic cost-benefit analysis, it is necessary to complete the steps below:

Step 1: Identify all costs, using the same time values, both actual and potential:


http://whatis.techtarget.com/definition/internal-rate-of-return-IRR

http://whatis.techtarget.com/definition/Net-present-value-NPV

http://searchcio.techtarget.com/definition/ROI

o Include implementation costs, consultancy fees, payroll, admin resources (printing costs, time, and additional software), machinery hire and maintenance.

o Identify risks such as employee time lost due to being involved in specifying, testing, and accepting the new application. Assign monetary values to intangible actions.

o Add all costs to arrive at a total cost value of the project/option.

Step 2: Identify benefits and opportunities, both tangible and intangible, as well as real and potential:

o Include payroll savings, environmental issues such as saving on energy and printing costs, improved health and safety, improved morale due to a better quality of life resulting from decentralised work, outsourcing of resources or intellectual property.

o Assign monetary values.

o Add all monetary values for a total value of benefits.

Step 3: Compare all options to identify the most appropriate option for implementation:

o If Costs > Benefits, then the option isn’t viable.

o If the Benefits > Costs, then the option is viable.

o If the Costs = Benefits (or are close together), then investigate further with more detailed calculations.


The following is an example of a Cost Benefit Analysis as explained by My Accounting Course: (https://www.myaccountingcourse.com/accounting-dictionary/cost-benefit-analysis )

Michael is a CFO in a software provider that manufactures full enterprise software applications. He is asked to perform a cost-benefit analysis of the new software that the company is about to launch. So, Michael creates a spreadsheet as follows:

The sale price of the fully-developed software is $200,000, and Michael estimates an annual growth of 25% for the next five years. Hence, the benefits range from $0 in year o to $488,281 in the year 5.

The costs of the software development include $75,200 upfront costs in year 0 and $29,000 ongoing costs for the next five years.

Based on the total benefits and costs per year, the net cash flow of the software ranges between -$75,200 in year 0 and $459,281 in the year 5.

Then, Michael assumes a discount rate of 11% to estimate the discounted net cash flow. Given a discount factor of 100% in year 0 to 45% in the year 5, Michael calculates the discounted net cash flow, which ranges between -$75,200 in year 0 and $206,677 in the year 5.

Hence, the net present value of this project, i.e. the sum of the discounted net cash flows each year is $848,502. Based on the discounted net cash flows, the Internal Rate of Return (IRR) of the project is 213%.

Michael determines the project as profitable and signs on its launch.

The analysis should take short, medium, and long-term views because some projects might not be viable in the short term, but benefits accrue


https://www.myaccountingcourse.com/accounting-dictionary/cost-benefit-analysis

exponentially over a more extended period. These periods vary from industry to industry – some view "short term" as six months and others consider five years to be short term.

Further Reading

Find more information about undertaking a Cost-Benefit Analysis

2.2.2 Budgeting for Cloud Computing NeedsTraditional computing needs required a great deal of investment in hardware, licenses, as well as labour costs. However, with cloud computing, operational costs replace these needs with some allowance for hardware investment.

Operational costs often include ongoing monthly items which can be budgeted, making it easier to plan cash flow over a period.

It is possible that there may be actual savings when implementing cloud computing such as:

ongoing costs such as upgrades to software,

maintaining a server,

having a special room to house computer equipment,

Ongoing I.T costs to maintain the current software programs and hardware.

To identify areas where expenditure and income are impacted by transitioning to cloud computing required a budget. Budgets have three main purposes:

A forecast of income and expenditure

It is important to predict if the business will make a profit or a loss and when looking to replace an existing system or introduce a new one, it is important to identify all the costs associated with the project as well as how the income of the business is impacted. For example, there may be cost savings in ongoing I.T, costs and an increase in income due to an increase in efficiencies such as responding to enquiries and processing customer invoices

A decision-making tool


http://www.brighthubpm.com/project-planning/58181-writing-a-cost-benefit-analysis/

The development of the budget will provide the framework for the decision-making process. By establishing the budget and monitoring each stage of the project implementation, decisions can be made to ensure that expenditure is tightly controlled.

A means to monitor business performance

The budget allows for business performance to be monitored by measuring the forecast against the actual performance. Any variances can be identified, and rectifications made to remedy the variance.

Some of the considerations which need to be made regarding the overall business operations when preparing a budget for a cloud-based computing system are outlined below:

Review the internet service provider fees – check if they have different plans available and if these are scalable according to users and traffic.

Identify when migration will take place and clarify any schedule which may be required.

Calculate how the migration will affect clients and other processes

Calculate the cost of any downtime.

Investigate savings on energy and environmental rebates.

Include the revenue from selling redundant hardware if it couldn’t be exchanged for new hardware. Include the cost of securing any redundant equipment by removing all information stored on each device.

Migration costs and schedule if not included in the provider agreement.

Include the costs of additional applications which may be purchased to support the system.

Identify any income from selling/sharing services with a third party

Include all planning stages and associated costs – travel, consultants’ fees, admin costs, etc.

Estimate the costs for any training which will be provided to employees and the costs for any ongoing support costs from the provider.


Further Reading

Read about five issues that you should take note of when you design your cloud computing budget.


http://www.razts.com/5-issues-about-cloud-computing-budget/

Activity 7

1. Provide a breakdown of the steps which need to be followed when completing a Cost-Benefit Analysis

2. What are three (3) key purposes of a budget?

1.

2.



2.2.3 Identifying Opportunities and Risks Associated with Cloud ComputingWith any new project in a business, it is essential that appropriate steps are taken to identify any potential opportunities or risks. This is no different when looking to introduce cloud computing into business operations.

There are several project evaluation tools which can be applied to assess the viability of cloud computing for the business. It is important to select the tools which provide the information needed to make an informed decision on which provider and service are most suitable.

The following are some of the most common techniques which are used to identify opportunities and risks.

Net Present Value (NPV)Time value of money is a significant consideration when projects need to be implemented. Interest rates play a role in what a dollar is worth at any time. For instance, $500 buys you more today than it will in 10 years’ time; it was also worth more ten years ago.

NPV allows calculations for:

o Forwarding Value (FV) for the value of money in the future and

o Present Value (PV) for the value of future funds as present value.

Published tables provide benefits for use in the calculations. Refer to the Present Value and Future Value Tables published by Knowledge Equity.

Example exercise 1:You need $100 in a year’s time. Work out how much you need to invest today at 4% interest rate. The formula is Future amount multiplied by the discount factor.

Present value table:

Period (years) 2% 4% 6%

1 0.9804 0.9615 0.9434

2 0.9612 0.9246 0.8900

3 0.9423 0.8890 0.8396


https://knowledgequity.com.au/wp-content/uploads/2015/08/KEQ-FV-and-PV-tables.pdf

*Three decimal points is usually accurate enough for most calculations

$100 x 0.962 (rounded factor) = $96.20

Example exercise 2:Calculate what the return on investment of $100 is in two years’ time with an interest rate of 6%. The formula is Current amount multiplied by the discount factor.

Future value table:

Period (years) 2% 4% 6%

1 1.0200 1.0400 1.0600

2 1.0404 1.0816 1.1236

3 1.0612 1.1249 1.1910

* Three decimal points is usually accurate enough for most calculations

$100 x 1.124 (rounded factor) = $112.40

Practical implementation of the present value of moneyTo implement cloud computing in the company, management expects returns as detailed below:

Investment $20,000

Returns (years)

1 $1,000

2 $2,000

3 $4,000

4 $8,000

5 $10,000

6 $8,000

TOTAL $33,000


Investment $20,000

Returns (years)

RoI 65% or $13,000

Adapted from: Basic Business Calculations, D Zidel, p 185

The project shows a positive return, but management wants to know what the current value of the return is at a rate of 6%:

Time (years) Value ($) Rate 6% Present

Value ($)

0 -20,000 1.000 -20,000

1 1,000 0.943 943

2 2,000 0.890 1,780

3 4,000 0.840 3,360

4 8,000 0.792 6,336

5 10,000 0.747 7,470

6 8,000 0.705 5,640

TOTAL 13,000 5,529

Adapted from: Basic Business Calculations, D Zidel, p 186

The RoI is vastly different if the time value of money is calculated. When management needs to decide between cloud computing solutions, each solution would be calculated on the same basis to arrive at the best financial option.

Further Reading

Learn how to apply NPV as part of a Cost-Benefit Analysis


http://www.economicsdiscussion.net/cost/cost-benefit-analysis/cost-benefit-analysis-with-diagram/13147

http://www.economicsdiscussion.net/cost/cost-benefit-analysis/cost-benefit-analysis-with-diagram/13147

PESTLE AnalysisA PESTLE Analysis or sometimes referred to as a PEST Analysis is a tool which is used to identify and analyse the key drivers of change in a strategic or business environment. This type of analysis can be used for:

business planning,

strategic planning,

marketing planning

product development

organisational planning

Use a PESTLE analysis to determine any possible obstacles and constraints that could influence the implementation of the project. The following table briefly outlines how the PESTLE can be applied to identify areas which need to be reviewed when introducing cloud computing into the business:

Political Data storage laws Training standards Privacy laws Government access to information

Economic Stability of domestic economy Customer support Global economy

Social Demographics

Technological New technologies Research Industry changes

Legal Industry policies Country laws and regulation in contrast to domestic legislation Industry regulations

Environment(al)

WHS regulations Geography Climate


Decision Trees and matricesA Decision Tree is a graph that uses a branching method to illustrate all the possible outcomes of a decision. A Decision Tree may be useful for focussing a discussion when a group must decide on the best solution.

It allows a business to weigh the possible actions against one another based on costs, probabilities and benefits. They can be used to drive discussion or can be used to map out an algorithm that predicts the choice mathematically.

By calculating the expected value of each choice in the tree, you can minimise the risk and maximise the likelihood of making the correct decision.

Some decision trees and matrices enable decision-makers to arrive at the preferable course of action.

A simple decision tree might look like this:

Source: https://cloudeco.wordpress.com/2011/03/21/to-cloud-or-not-to-cloud-thats-the-question/

When applying the Decision Tree technique:

Make all calculations using the same units and time, i.e. earnings per 22 working days.

Decisions are made from left to right or top to bottom. Extend the tree by adding probabilities to each variable.


https://cloudeco.wordpress.com/2011/03/21/to-cloud-or-not-to-cloud-thats-the-question/

https://cloudeco.wordpress.com/2011/03/21/to-cloud-or-not-to-cloud-thats-the-question/

List non-financial advantages and disadvantages for each scenario, e.g. flexible working hours for restaurant work vs pension scheme for corporate

Each event probability must add up to 100%.

Further Reading

Learn how to extend the decision tree to arrive at the best option for the business.

SWOT AnalysesA SWOT analysis is one of the fundamental business decision-making tools that enable managers to gain insight into the viability of a project. As it relates to cloud computing, analyse each option and provider offer to determine which option is the best for the business.

If necessary, split each analysis into internal and external influences or conduct a PESTLE analysis.

The following is an example of a SWOT analysis for cloud computing:

BSBSMB412 Learner Guide Version No. 1.1 Australian College of Business and Accounting T

Threats

• Resistance from (especially) IT personnel if they can’t upskill themselves

• Local legislation governing the use of data although it is stored in another jurisdiction

• Stored data not conforming to local legal requirements if used as evidence in a court case

• Unknown track record of provider regarding data security and protection, adherence to domestic and international legislation

• Hardware

OOpportunities

• Affords flexibility in operations and access to new applications

• Business can provide new non-core offerings such as access to researched data and sharing of storage space

• Local and global legislation regulating cloud storage and data privacy

• Cloud service offering set to increase rapidly

• Unknown location of servers

• Internet accessibility and bandwidth

• Difficult to migrate legacy systems

• Ownership of data and processes

• Legislative concerns• Economic downturn

may affect service providers

WWeaknesses

• Growing support from business and developers

• Commercial viability and successful implementation

• Improved business offerings

• Shared resources that distribute costs across clients

• No license fees and update schedules

• Improved system compatibility across applications

• Access from anywhere on any device

• Minimise the reliance on consultants

• Unlimited access to applications

• Unlimited storage

SStrengths

Cloud Computing SWOT Analysis

https://www.mindtools.com/dectree.html

Further Reading

Read a study conducted by Osman Ocak and the results of his cloud computing SWOT analysis

Activity 8

1. List and provide an overview of two methods of analysis which can be used to determine the effectiveness of different cloud computing services.

2. What do the following acronyms mean: a. PESTLEb. SWOT

1.

2.



http://www.worldresearchlibrary.org/up_proc/pdf/16-142573106271-74.pdf

http://www.worldresearchlibrary.org/up_proc/pdf/16-142573106271-74.pdf

2.2.4 Considerations for Using Cloud-Based Computing Services from Service ProvidersThe following are some considerations that need to be kept in mind when using cloud-based computing services from service providers and organisational protocols you can follow for these considerations:

Competency Evaluate the provider’s capabilities to deliver the service as

advertised and compare to the business needs.

If possible seek feedback or reviews from their existing customers to find out if they are happy with the service.

Capacity Evaluate the capacity of the provider to offer the service and how

quickly they can respond to market influences.

Confirm the security and privacy protocols of the service

Confirm the availability of training and ongoing support.

Determine if they have resources and appropriate processes to address internal issues such staffing stability and security.

Control Establish and confirm the controls and who is responsible for

managing the service. Is it a public, private or hybrid service?

Financial liquidity

Research and evaluate the financial health of the provider. How many customers do they have, what is their reputation etc.?

Price Include a cost-benefit analysis of each provider to determine if their

services will benefit the business.

Communication Ensure the provider has procedures in place to communicate in the

event of a crisis that affects clients.

Confirm communication channels and schedules. Chat lines, direct emails and notifications directly from within the service, e.g. Xero provides notifications directly on the site when a user has logged in.

Reliability


Confirm the terms of any contract with the provider to ensure that are reliable and will deliver its service consistently – time, cost, quality.


2.3 Preparing a Business Case for Implementing a Cloud-based Computing System2.3.1 Business Case Design ProcessHaving collated all the information on the cloud computing options which best suit the needs of the business the next step is presenting the business case to all relevant stakeholders.

The business case needs to outline the why, what how and who of the project. Whilst the proposal focuses on why you want the cloud computing service, the business case should have more detail and needs to be reviewed by the stakeholders before the service is accepted or rejected.

The business case needs to utilise all the research information you have collated and given an assessment of the:

Benefits

Opportunities

Risks

Costs

Timescales

Impacts on operation

Organisational capability to deliver the outcomes, e.g. implement the cloud-based system

The business case is needed when resources and expenditure on a project need to be justified. To ensure acceptance of a business case, follow the key steps outlined below:


2.3.2 Writing the Business CaseAs mentioned above in 2.3.1, it is important to approach the writing of the business case by asking the WH-questions: What, Where, When, Who, Why, How much/many/long.

The following table provides some of the key WH questions which could be asked when preparing the business case:

Question Description

What is cloud computing?

Short description of the history of cloud computing, what it is, and how it has transformed business processes.

What are the …? … benefits/advantages… Opportunities… threats… risksInclude all the SWOT analyses from section 2.3.3.


Create a vision

Be convincing about the benefitsFocus on the goal being better than the presentInvolve everybody in the process, from investigation to testing and acceptanceInclude everybody in the communications about the status and progress

Share the vision

Communicate in language everybody understands - images work bestLive the visionCreate short-term goals that can be reached easilyEnsure the project vision is compatible with the organisation's vision, mission, values and culture

Communicate rollout

Describe how cloud services work and how it will be implemented and how it will benefit each person, including customersDetail the sequence of users that will be upgraded and when they might expect the migrationBe honest about the possible problems and extra time if migration doesn't go according to plan

Review and revise

Include input from all affected partiesFocus on smooth migration and communication with employees and customersRevise implementation schedule based on new information from discussions and customer feedbackCommunicate revised plan

Question Description

Why do we need cloud computing services?

Describe the way the business operates currently and how the various services can improve productivity, cut costs, add value and streamline underlying processes.

Who is involved? List the champions and all other drivers of the process and who will be involved in the implementation, training and review.

Whom will it benefit?

Detail specific departments/individuals and even customers.

When will it be implemented?

The specific date on which the implementation should ideally start (if the proposal is accepted). Detail contingency timeframes and what might impact delay. Refer to implementation schedule.

Where will ...? … implementation starts… the services are hosted… training takes place

How much will it cost?

Discuss the CBA and make recommendations.

How long will it take?

Refer to the implementation schedule with milestones.

How many services?

Elaborate on the CBA and detail rollout of additional services.

How will each stage be monitored?

List the individuals tasked with each stage and outline the processes and timeframes for reports to management.

Further Reading

An interesting resource that further describes creating a CBA and creating a template for future projects.

How to Write a Business Case ― 4 Steps to a Perfect Business Case Template


https://resources.workfront.com/project-management-blog/how-to-write-a-business-case-4-steps-to-a-perfect-business-case-template

https://resources.workfront.com/project-management-blog/how-to-write-a-business-case-4-steps-to-a-perfect-business-case-template

Remember to keep the business case concise and to the point and ensure that you have highlighted both the advantages and disadvantages of each option and reasons for your recommendations.

Activity 9

1. List the elements which need to be assessed when developing a business case for the cloud computing needs of the business?

2. List five (5) key WH questions which could be asked when preparing the business case.

1.

2.



III. Developing the Necessary Plans to Implement Cloud Computing into the Business 3.1 Establishing and Prioritising Short and Long-term Goals for a Cloud-based Computing SystemOnce the business case has been approved, and the next stage is to develop an implementation or action plan for implementing the cloud computing service into the business. 3.1.1 Establishing SMART GoalsThrough interviews with employees, customers and other stakeholders, business priorities will emerge which need to be weighed against each other using a matrix system to arrive at the most suitable priorities for the company.

One of the most commonly used methods is establishing SMART goals. SMART is an acronym for:

Specific (simple, sensible, significant).

Measurable (meaningful, motivating).

Achievable (agreed, attainable).

Relevant (reasonable, realistic and resourced, results-based).

Time-bound (time-based, time-limited, time/cost limited, timely, time-sensitive).

Use the acronym SMART together with the WH-questions to identify the various goals when you interview stakeholders:

Step Description

Identify goals

Specific What do you want to achieve?Where must it be executed?Who else is involved?Which barriers do you need overcome?Why do you consider this a priority?

Measurable What indicates a successful implementation?How much do you think it might cost?How much time can you invest in the planning and implementation process?


Step Description

Achievable What are the constraints to reach this goal?How realistic is the goal?Why might it not be achievable? Does the goal need to be broken down into smaller steps that are more realistic?

Relevant Is the goal related to the implementation?Is the goal relevant to the company’s vision and mission?Did you discuss the goal with others in the department or is this an individual goal?

Time-bound What might influence the completion date?What are the immediate, short-, medium-, and long-term activities to reach this goal?

Identify resources

Time, external expertise, training, tools, financial

How urgent is the specific goal – will it impact operations negatively before implementation?What expertise is needed and is it available in-house or does the organisation need to employ consultants, and what is the financial implication?What additional equipment or software is needed to ensure success?What might financial constraints influence the success of the goal and can the budget be adjusted to ensure success?

SMART is an effective tool that provides the clarity, focus and motivation needed to achieve the established goals. It can also improve your ability to reach them by encouraging you to define your objectives and set a completion date.


3.1.2 Prioritise Goals Using the Eisenhower MatrixUsing SMART goals will provide the focus of what needs to be achieved for each goal and includes the measures which need to be taken to achieve them.

Goals need to be prioritised and placed in order of what needs to be done first through to what needs to be completed last. It is also important to establish the short and long-term goals when introducing cloud computing.

Short-term goals are those who need to be accomplished quickly, e.g. within a week or month.

Short-term planning looks at the characteristics of the company in the present and develops strategies for improving them. Examples are the skills of the employees and their attitudes. The condition of production equipment or product quality problems is also short-term concerns. To address these issues, you put in place short-term solutions to address problems. When prioritising goals specific to the introduction of cloud computing key strategies will need to address employee training, equipment servicing, and quality fixes – which are short-term solutions. These solutions set the stage for addressing problems more comprehensively in the longer term.

Long-term goals, on the other hand, require more planning and may not be accomplished for twelve months. In the long term, companies want to solve problems permanently and to reach their overall targets.

Long-term planning reacts to the competitive situation of the company in its social, economic and political environment and develops strategies for adapting and influencing its position to achieve long-term goals. It examines major capital expenditures such as purchasing equipment and facilities and implements policies and procedures that shape the company's profile to match top management's ideas.


When short-term and medium-term planning is successful, long-term planning builds on those achievements to preserve accomplishments and ensure continued progress.

There are many methods which can be used to establish short and long-term goals and establish the priorities of each.

One of the most straightforward methods which can be applied when prioritising goals is the Eisenhower Matrix, or also called the Important-Urgent Matrix. The Eisenhower Matrix consists of four quadrants and applies various strategies in each.

Example Eisenhower Matrix:


NOT URGENTURGENT

NOT IMPORTANT

IMPORTANT

4Eliminate

Not Urgent and Not ImportantActivities that are neither

important nor urgent and doesn’t contribute to the overall success

of the goal.

3Delegate

Urgent but not ImportantActivities that need immediate

action but that don’t contribute to the current task.

2Do Later

Not Urgent but ImportantImportant activities that can be

actioned later.

1Do First

Urgent and ImportantActivities that need immediate

action.

3.1.3 Prioritise Goals by Using WeightsOnce the goals have been put into the correct context with the Eisenhower Matrix, concentrate on those in Quadrant 1 – Urgent and Important because they impact business functions and customer satisfaction. The following is a list of tasks which are in no particular order and have been assigned weights to prioritise goals for implementation.

It is clear from the matrix above that the third item has a higher priority and needs to be implemented first to avoid further reconciliation mistakes and delays in reporting.

The weighted matrix gives clear priorities for the implementation of the various goals. The next steps would be to connect timeframes to each application to plan for the short and long-term activities.

In many cases, activities can run concurrently, or one activity doesn’t have to be completed before the next one begins; they can be actioned as resources become available. These timeframes and resource availabilities will influence the budget and cash flow projections; use project management tools such as Work Breakdown Structure to plan the implementation of the various stages.

You also need to consider whether weighting can be assigned in a standardised way to all employee, or to everyone in a particular area or role, or if you need to vary the weighting for each department or employee.

Weighting tends to work best with job-specific goals, where you can vary the weighting as appropriate for each job type.

There are cases though when you might want to allow managers to assign a different weighting for employees. As an example, while all employees in a department may share a common goal to achieve a revenue target, that goal may be weighted lower for a new employee who also needs to focus on developing job or product knowledge than it is for an experienced employee who is focused on productivity.


GoalImportance

to user/ customer

Cost Success rateCost/

resource reduction

Impact on other

processesRanking

1=Low5=High

5=Low1=High

1=Low5=High

1=Low5=High

1=Low5=High

Reduce email traffi c 4 x 3 x 5 x 5 x 2 = 600Improve repairs turnaround 5 x 4 x 2 x 3 x 3 = 360Link bank statements to Xero 5 x 4 x 4 x 5 x 2 = 800

Adapted from: Moresteam – Project Priority Calculator

https://www.moresteam.com/toolbox/project-priority-calculator.cfm

Resources

Stakeholder Map provides some free and downloadable WBS templates, one of which is the Service Cloud work breakdown structure

The Weighted Objectives Method is best used when a decision must be made between a select number of cloud providers, design concepts or principal solutions.

Activity 10

1. What does the acronym SMART mean?

2. Explain the process which is followed when implementing the Eisenhower Matrix

1.

2.



https://www.stakeholdermap.com/plan-project/service-cloud-deployment-wbs.html

https://www.stakeholdermap.com/plan-project/service-cloud-deployment-wbs.html

3.2 Preparing a Budget to Meet the Short and Long-term Goals

In Section 2.3.2 we discussed the need to prepare a budget for the introduction of cloud-based computing into the business. Once the plan for implementation has been approved, and the short and long-term goals are established, it is important to establish a budget for ongoing performance and monitoring of the new system.

3.2.1 Budget vs Cash FlowA budget is a living document that changes as more information becomes available. Treat the budget as the umbrella under which the cash flow resides, e.g. the budget for household expenses is $1,000 and the cash flow is the sources of income against the line items of expenditure – food, utilities, etc. If the expenditure is less than the income, then the cash flow is positive. The excess might be transferred into a savings account or pay off a loan. In business terms, excess cash can be carried over to another project or contribute to the following month's expenses.

When preparing the budget, discuss the item amounts and cash flow with the project leaders to understand how fees are structured around implementation and subsequent services.

Keep the following points in mind when preparing the budget and cash flow for cloud-based computing services which are implemented:

License fees fall away – these are usually staggered or annual – and cloud services are paid on a month-to-month basis.

Consider structuring some services to take advantage of savings and determine if there will be any income from shared services with third parties.

Service fees based on usage fluctuate from month to month, so implement triggers to alert departmental heads and the finance department when thresholds approach maximum capacity.

Ensure that subscribed applications are being used by conducting audits regularly. Departmental heads need to report on applications no longer in use.

Investigate costs associated with high and low usage times to take advantage of cheaper application hours.

Post-migration costs include training, compliance with legislation and the changes you might need to make to security and privacy protocols.


Ongoing administration of cloud services, although not as intensively as regular IT labour costs, the system still has to be managed.

Scheduled upgrades and additional migrations.

Envisaged applications and access schedules.

Testing of new applications.

Further Reading

Get a better understanding of how to predict expenses and account for those in budgets and cash flows in the article Preparing for Unpredictable IT Expenses.

Activity 11

1. List and explain three (3) key considerations which need to be factored when preparing a budget for implementing a cloud computing service.

1.



https://blog.centralts.com/preparing-for-unpredictable-it-expenses

IV. Providing support to implement the plan Implementing a new system into the business involves having detailed strategies, plans and processes. If these strategies and plans are not communicated effectively to everyone who is impacted by the change, problems will arise, and deadlines and goals can be negatively impacted.

4.1.1 Develop a Communication PlanCommunication is a key activity when any changes within the organisation are being contemplated. A communication plan gives a roadmap to making sure all stakeholders are involved and have current information.

Develop the communications plan with the implementation team to ensure that it runs on the same timeline. To design a communications

plan, follow the steps outlined below:

Further Reading

Follow the step-by-step approach to Creating and Implementing a Communications Plan written by Video


KEY INSIGHTS◊ Be transparent and honest ◊ Be clear about the need for the changes◊ Communicate envisaged problems ◊ Address concerns, especially negative rumours

6 MonitorEvaluateRevise

Monitor outcomes against milestones

Monitor if plan still aligns with implementation plan

Evaluate results from feedback to establish success

Revise plan if needed

5 Timelines forrollout

Align with implementation team

Get support from top management

Finalise rollout of plan Communicate the

communication plan

4 Identifycommunication

channels Social media Email Text messages Website dashboards Intranet notice boards Staff meetings Community events Encourage feedback

3 Identifyaudiences

Industry partners Customers Community

Break down into demographics

Generational Socio-economic Education levels Cultural

2 Define communicationplan objectives

with SMART

S pecific to the cloud computing implementation

M easurable in time, cost and outcomes

A chievable timeframes and methods, and within budget

1 Understandwhat you need

to communicate Speak to the process

drivers and identify timelines

Consult customers - surveys, focus groups

Consult departmental heads for best way and time to communicate with the employees

http://videa.ca/wp-content/uploads/2015/08/Creating-and-implementing-a-communications-plan2.pdf

http://videa.ca/wp-content/uploads/2015/08/Creating-and-implementing-a-communications-plan2.pdf

Steps three and four in the communication plan above, indicate which channels are the most effective and the order of development and implementation.

Develop an action plan and list all actions to implement the plan and ensure that all stakeholders, including employees, are included in this process.

There are many reasons for communications during the implementation of the cloud-based system to be unsuccessful. When communicating and promoting the key features of the cloud-based system and discussing the implementation process, it is critical that all communication is clear and concise.

Some key concerns when communicating the plan could be:

Unclear measurement criteria

Poorly defined outcome measures

Vague and confusing communication

No synergy with system implementation team

Incomplete survey questions

Qualitative and quantitative questions asked in the same survey/feedback session

No, follow up with feedback and concerns

Inadequate time for design, implementation and analysis of survey data

Poor stakeholder engagement

Messages not designed for the audience to understand

Dishonest information

Unpredictable communication timelines

Inconsistent messages for different audiences

Benefits are too good to be accepted by the audience

Address the issues above when creating the communications plan to ensure all stakeholders accept the changes and system implementation plan.

Implement change management principles according to the organisation’s change culture to ensure employees and customers accept the rollout of cloud computing services.


Further Reading

Use Kotter’s Change Model to implement change management principles.

Effective communication is getting your message across clearly without resorting to complicated jargon that you think might impress your audience. If the receiver of a message cannot understand what it is you're trying to get across, after a while, they will switch off, and you have lost your opportunity to share information.

Effective listening means that you can understand the message and the information doesn’t confuse you.

When communicating the plan, ensure that the message being given is easily understood.

The following table provides an overview of applying effective communication skills to promote the key features of the implementation plan:

Steps Process

The aim of the message

Planning your message starts with what you want to get across:

Why are you communicating with this person?

What outcome do you want the message or what reaction do you want from the receiver?

How can you create an interest in your message – why should the receiver listen to you?

How do you design your message for maximum impact – how do you prioritise what you are going to say?

Encode the message

This stage is the visible embodiment of your message and usually takes on one or more forms: picture, dance, music, numbers, written, spoken. Most of the time the context is dependent on (often changes within organisational setup):

Religion/Belief system

Gender

Cultural background


http://www.businessballs.com/changemanagement.htm

Level of education

Age

Expertise in the subject

Vocabulary

Priorities

Status Confidentiality

Native language

General knowledge

Transmit the message

The message is transmitted through one or more channels, which is dependent on the previous step, e.g. if you’re using dance to communicate your message, you would have to include a video in an email. Visual transmission often uses a combination of the following:

Hand gestures – what do your hand gestures say about your message?

Visibility – is the receiver able to see you?

Background distraction – are there noises or other people to distract from your message?

Audibility – is the receiver able to hear you?

The tone of voice – does it convey your message or is it saying something else?

Stress – how do you emphasise words, or does your voice reflect stress?

Eye contact – do you know the guidelines for different cultures?

Facial expressions – does your expression contradict your message?

Pauses – do the pauses invite interaction, or require the receiver to pay attention?

Voice inflexion – is your voice interesting to listen to or is it monotonous and boring?

The speed of delivery – do you talk too fast or too slow?


Body language – do you have open and inviting body language?

Timing – are you delivering your message when the receiver can pay attention?

Non-visual transmission (written) is much ore involved because the receiver cannot see facial or body expressions to judge emotion. Icons (smileys, emojis) that convey emotion have no place in business communication so be careful with the design of the message.

Business communication, whether it is through email or another document, has four main parts:

Opening – Tells the reader why you are writing

Focus – States the details about the topic.

Action – Outlines what you want to happen and gives a timeframe.

Closing – Thank the reader and mention further communication/action.

For the message to be interpreted correctly, it is imperative that the receiver:

Listens/reads without reacting

Asks for clarification if something isn’t clear

Pays attention to body language

Understands the sender’s point of reference

Actively listens/reads to the message before reacting.

Active listening skillsActive listening requires practice because people would prefer to talk and have their ideas heard than listen to what the other person is saying. This means that the message the other person is trying to get across is misinterpreted or not heard at all.

Active listening skills include the following actions:

Respect what the other person and what they are saying

Verbally repeat the speaker's message and ask questions to clarify the message.

Avoid distractions such as messages on your cell phone or an email prompt.


Empathise with the speaker

Provide a reason for asking a question

Get agreement about the outcome of the discussion.

Effective and ongoing communication will contribute greatly to the success of the new cloud computing services which are implemented. At each stage of the implementation, it is important to seek feedback from the users of the service and address any issues or concerns which are raised.

Activity 12

1. List the six (6) steps in the development of a communication plan

2. What are five (5) key concerns which may need to be addressed when communicating the plan?

3. When applying active listening skills, what are the actions which need to be demonstrated?

1.

2.

3.



4.1.3 Develop a Training StrategyEmployees who are engaged and feel valued as a member of the greater team accept changes to processes more readily; they also see the benefit of being trained in new processes. Even when training is included as part of the contracted services by the provider, management will still need clarity on how employees and customers will migrate seamlessly to the new systems.

When introducing a cloud-based system into the business, it is essential that all employees who will use the system are provided with appropriate training, coaching and support.

When implementing the plan, it is important to:

Develop a training strategy and communicate the programme to all stakeholders.

Compare and align the cloud computing training strategy to the organisation’s overall training strategy.

Compare and align the cloud computing training strategy to the organisation’s vision and mission for cloud computing implementation.

Identify and appoint internal coaches

Plan for a support network and systems to assist with transition both during training and afterwards

When developing the training strategy, incorporate the following key principles to ensure that the transition will run smoothly:

1. Proposal: Identify the objectives, how successful implementation will be measured and how the training will impact the organisation’ reputation and finances. Depending on the size of the organisation, including the training as part of the manager and employee KPIs. Include realistic timeframes and financial requirements.


2. Obstacles and constraints: Outline obstacles (e.g. resistance to change) and constraints (e.g. decentralised work streams) by using the PESTLE analysis method.

3. Research and recommendations: Outline how training providers were researched and reasons for recommendations. Align the proposals with the objectives the implementation- and communication plans.

4. Clarify training support: Detailed training and support roadmaps provide management with a guide to ensure their support of the strategy.

5. Training tools: Discuss the various training tools available and how it supports each demographic. Address accessibility through mobile devices, eLearning and portals as well as group and classroom options.

6. Coaching and learning support: Identify coaches and other support networks to ensure employees and customers have accessible resources during and after the transition.

7. Evaluation of training: Outline the methods of establishing the outcomes of training and how customers accept the changes and how gaps will be addressed.

8. Resource requirements: Detail all resource requirements – financial, premises, time, human, tools – and if additional training experts might be needed, and if so, their qualifications and training plan.

9. Ongoing training: Discuss ongoing training needs and schedule.

10. Alignment: Ensure training schedule aligns with the implementation plan and communications strategy.

4.1.4 Coaching and SupportCoaching employees through changes is an integral part of management functions and should form part of their KPIs. Coaching focusses on collaboration between management and staff and changes the relationship from directing to cooperation to develop and improve the employee for career advancement.

The fundamental principles of coaching are:

Task-focussed

Programme is short-term


http://pestleanalysis.com/what-is-pestle-analysis/

Performance and outcome drove

Coaching should be used when:

Employees need to develop new job competencies and skills

A new programme or process impacts their work

An employee is earmarked for promotion, and they need to learn new skills for that position

Further Reading

Identify and equip managers who display Key Characteristics of a Successful Coach.

By providing ongoing support and coaching, employees will be open to learning new skills which are needed as part of the cloud-based computing service. With support and guidance, issues which are identified, such as not knowing how to navigate the service can be addressed promptly and will increase efficiency in using the new system.

Activity 13

1. What are the components which need to be included when developing a training strategy?

2. What are the fundamental principles of coaching?

1.


https://coach4growth.com/coaching-skills/what-is-coaching-in-the-workplace

2.


The key objective of any business is to maximise efficiencies within the workplace. With the introduction of cloud-based computing, organisations can source a multitude of applications which can now be accessed from any location and on any device including computers, laptops, tablets and smartphones.

Before locking in a cloud-based system, ensure that the due diligence is completed which includes reviewing existing systems and processes to determine how a cloud-based system will be beneficial. Research all the options and analyse the financial and business performance of the business to ensure the most appropriate cloud-based system and provider are secured.


Answers to Activities

Activity 1

1. What are the four (4) types of cloud-based systems which are available?

2. List five (5) benefits of implementing a cloud-based system in your workplace

Question 1: Public Hybrid Private Community

Question 2:Benefits will vary but could include:

Improved security using hybrid and private-shared clouds

Standardisation of data that can be shared between clouds and platforms

Data consolidation from different clients will be available to more users

Increase in service providers with better value for money offerings

Faster and more reliable applications improve mobility and thus productivity

More extensive selection of apps allows businesses to change business models rapidly and cost-effectively

Open source services will reduce overall cloud service costs

Hybrid clouds offer better security and choice for companies to manage their own data

New applications will use cloud services exclusively thereby driving more users and traffic to cloud technologies

Pay-for-what-you-use save companies operating expenses and scalability

New areas for IT professionals to upskill

Improved processes and the ability to access workloads from any location on any device will reduce resistance to change within an organisation


Service providers can leverage their offerings to a broader audience thereby reducing costs for each client


Activity 2

1. List and describe three (3) cloud-based services which can be utilised in business.

2. What is meant by the term virtualisation?

3. What is meant by the term scalability?

4. List three (3) risks which need to be considered when choosing a cloud-based system.

Question 1:IaaS (Infrastructure as a Service)

Infrastructure as a service contains the building blocks for cloud-based I.T. It provides access to specific networking features, computers and data storage which can be either virtual or on dedicated hardware. This type of service has the highest level of flexibility and control over the I.T. resources and like those being used on current systems. In summary, an IaaS provides:

The foundation of the stack of three services. Infrastructure to run PaaS and SaaS. Service provider ensures security and availability.

PaaS (Platform as a Service)Platform as a service takes away the need infrastructure such as hardware and operating systems. Instead, the focus can be on the deployment and management of the cloud-based applications which are used. Efficiencies are increased as the need to deal with resource procurement, software maintenance and patching are no longer an issue. In summary an IaaS:

Provides the framework on which to build other applications. Enables cost-effective and quick testing of applications. Decreases time to deploy new applications or updates.

SaaS (Software as a Service)Software as a service is a complete product which is run by the service provider (e.g. MYOB). SaaS is often referred to as an end-user application. This system does not require the end user or customer to deal with the infrastructure or maintenance of the applications. The service provider is responsible for all maintenance such as system updates etc.

Question 2:Virtualisation duplicates or simulates an environment. Within cloud computing, virtualisation essentially means that a user can access an application, data, or an operating system from any device from any location and it will look the same on all devices.


Question 3:Scalability means that companies pay as they use applications, data, or infrastructure and they're not tied to licensing fees. If the organisation needs to employ an additional five consultants for three months to help with their year-end processes, no additional license fees apply and will only cost three months' access for the consultants. Companies can also identify new service offerings quickly, without having to go through a development and testing cycle; businesses are becoming agiler in their business models.

Question 4:1. Theft or loss of sensitive information, data or intellectual property. A threat

can be internal or external.

2. Local storage and privacy laws contrast with that of the country in which the infrastructure resides.

3. Governmental privacy and availability of data governance issues.

4. An organisation’s internal security policies aren’t stringent enough to prevent theft of information from their own employees.

5. The provider has inadequate hacker and malware prevention protocols.

6. Contracts between business partners with strict confidentiality clauses not filtered down to application levels so that employees can upload sensitive data.

7. Security breaches result in loss of reputation and customer mistrust with them ultimately taking their business elsewhere.

8. Customer perception that their information is being sold or that it is not secure enough to prevent theft leads to mistrust.

9. Security breaches and subsequent notification to those affected impact profit margins.

10.Provider lock-in agreements that prevent migration to other providers for various reasons.

11.Inexperienced providers with an unproven track record – from security to providing infrastructure.

12.Poor software and hardware performance with client unable to manage their own uptime.

13.Provider policies and procedures to govern their own employees and how they manage internal risks.

14.IT skills not keeping pace with cloud computing technology.


Activity 3

1. Explain the PDCA cycle

2. Outline the steps which should be taken when conducting an audit of current computing resources

Question 1:Plan

Identify the need for cloud computing and sources of information Review current resources: financial, human, skills, hardware, software Analyse future needs of employees and business processes and align with

company vision and mission (conduct a separate review if needed and incorporate)

Consult with subject experts, management, industry leaders Define action plan

Do Implement the action plan Measure effectiveness and progress of each action

Check Check if the action plan is effective through before and after outcome

comparisons Audit outcomes

Act Identify failures and rectify Learn from success and implement in failed processes

Question 2: Conduct an audit of physical machines and compare them to the asset

register – laptops, servers, desktops, printers, tablets, presentation equipment, modems, network points and cabling.

Conduct an audit of current software – backend and user software. Identify which packages are in use, how many users access an application and compare with licenses.

Investigate and compare documented processes with actual procedures.

Identify issues with current infrastructure and user requirements.

Investigate data usage and categorise by traffic intensity and department access.

Interview users to gain insight into their requirements and what their understanding and acceptance are of cloud computing.


Activity 4

1. List three (3) policies and procedures which need to be reviewed or developed which are specific to cloud-based computing.

2. Discuss two (2) user needs which need to be considered when researching cloud-based computing to suit the business.

3. List and explain three (3) benefits of introducing cloud computing into the business.

Question 1: Procurement Security Information management Project and IT change management IT training Privacy Non-disclosure agreements Finance Customer Question 2: Accessing software can be from anywhere and on any device, allowing for

flexible working hours and location. Downtime is also reduced because updates happen in the background and don't impact users.

Application user interfaces are easier to use, especially on mobile phones. This gives employees another option to opt for flexible working hours and locations.

Data and privacy are more secure when industry standard protocols are used to reassure management and users of the safety of keeping sensitive information in the cloud.

Question 3: CRM and ERP systems are elastic and scalable to the business’ needs.

Accessing industry systems reduces software costs and eliminates dedicated human resources.

Data storage and archiving are managed by the provider who uses industry standard protocols to ensure the security of data, minimal downtime, and disaster recovery processes.

eCommerce platforms are readily available with a comparable reduction in total cost of ownership. Enhancements are seamlessly allowing the company agility and flexibility in what they offer their customers.

Cloud email applications enable organisations the flexibility for users to access shared address books and calendars from any device. Cloud email servers reduce the need for human resources to manage the email servers which the company also no longer needs to host on-premises. The cloud email server is also subject to the same provider security and disaster recovery protocols.


File management enables users to upload, sync and share files across devices from any location. File sharing privileges are set by the owner of the data. File sharing has security and compliance risks and should be managed carefully by the IT department. Examples of cloud file sharing services are Dropbox, Egnyte and Google Docs.

Scalability of cloud systems affords organisations the ability to provide almost-instant additional services or access to greater computing power when there is increased demand (month end or when a retailer has a major sale). This ability enhances customer satisfaction and with a positive impact on profits.

Cloud accounting applications incorporate legislation seamlessly to ensure clients adhere to business and taxation laws and accounting standards. Many applications connect to bank feeds to give a live status of the company's cash flow. Most popular Australian accounting software are MYOB, Xero, and QuickBooks

Activity 5

1. Explain the key elements which should be included in a proposal for a cloud-based computing service.

2. List and outline three (3) needs which need to be addressed in the proposal for a cloud-based computing service.

Question 1: Executive Summary Statement of Need Project Description Budget Analysis Organisational Details Conclusion

Question 2: Develop a matrix of the everyday needs expressed by users and the

organisation and summarise these in the proposal document.

Use the matrix when doing the Cost Benefit Analysis (CBA) and the business case.

Detail how the concerns will be addressed when investigating what the providers have to offer in their services and how the needs will be incorporated into the CBA.

List the current software and how the users feel about using them, and whether cloud applications will be acceptable to them.

Work with the communications team to ensure employees are well prepared for cloud computing and how it will benefit them personally and the


business.

Address security and privacy concerns to alleviate user and management fears about data safety.

Detail the provider protocols for using industry standard firewalls and disaster recovery management policies.

List all risks and how these will be dealt with when choosing a provider. Conservative organisations might want to control the implementation by deploying one service, consolidating, testing, evaluating, then moving onto the next step. If this is not a viable method, ensure that you list the benefits of the proposed schedule over that of the conservative approach.

Activity 6

1. When tailoring the cloud-based service to the needs of the business what are three (3) security and privacy issues which need to be addressed?

2. Discuss the business protocols which need to be identified and confirmed when using the services of specialist advisors.

3. List two (2) legislation which directly impacts how a business can use cloud computing.

Question 1: Data storage - ensure that data stored in the cloud can only be accessed

with the appropriate authentication and authorisation levels for those who need to access the data.

Confidentiality - is a key concern so the applications you use will need to have protection against attacks. Ask the provider what measures they have in place to ensure the confidentiality of the data which is stored in the cloud. To maintain confidentiality data understanding and its classification, users should be aware of which data is stored in the cloud and its accessibility.

The integrity of the information - will rely on the passwords and access which are established by the business. Do not store passwords anywhere which can be accessed and used by others if systems are hacked, or there is unauthorised access from within the business.

Availability - Availability is the most important issue in several organizations facing downtime as a major issue. It depends on the agreement


between the provider and the client.

Data access - mainly refers to the data security policies which need to be established when cloud computing is implemented. In an organisation, the employees will be given access to the section of data based on their company security policies. The same data cannot be accessed by the other employee working in the same organisation. Encryption techniques are used to ensure only those who should see specific data are given access. To secure the data from the unauthorised users the data security policies must be strictly followed. Since access is given through the internet for all cloud users, it is necessary to provide privileged user access. The user can use data encryption and protection mechanisms to avoid security risks.

Data Breaches – is always an important security issue. Large volumes of data from various users are stored in the cloud which provides opportunities for malicious users to enter the cloud making the entire cloud environment prone to an attack. A breach can occur due to various accidental transmission issues or due to an insider attack. Check with the provider to establish the security measures they have implemented to minimise the risk of this occurring.

Question 2: Competency Capacity Commitment Control Financial liquidity Price Reliability Environment Communication Question 3: Australian Information Commissioner Act 2010 Privacy Act 1988 Evidence Act 1995 Electronic Transactions Act 1999 Crimes Act 1914 Corporations Act 2001

Activity 7

1. Provide a breakdown of the steps which need to be followed when completing a Cost-Benefit Analysis

2. What are three (3) key purposes of a budget?


Question 1: Step 1: Identify all costs, using the same time values, both actual and

potential:

o Include implementation costs, consultancy fees, payroll, admin resources (printing costs, time, additional software), machinery hire and maintenance.

o Identify risks such as employee time lost due to being involved in specifying, testing, and accepting the new application. Assign monetary values to intangible actions.

o Add all costs to arrive at a total cost value of the project/option.

Step 2: Identify benefits and opportunities, both tangible and intangible, as well as real and potential:

o Include payroll savings, environmental issues such as saving on energy and printing costs, improved health and safety, improved morale due to a better quality of life resulting from decentralised work, outsourcing of resources or intellectual property.

o Assign monetary values.

o Add all monetary values for a total value of benefits.

Step 3: Compare all options to identify the most appropriate option for implementation:

o If Costs > Benefits, then the option isn’t viable.

o If the Benefits > Costs, then the option is viable.

o If the Costs = Benefits (or are close together), then investigate further with more detailed calculations.

Question 2: A forecast of income and expenditure A decision-making tool A means to monitor business performance

Activity 8

1. List and provide an overview of two methods of analysis which can be


used to determine the effectiveness of different cloud computing services.

2. What do the following acronyms mean: a. PESTLEb. SWOT

Question 1:Net Present Value (NPV)

Time value of money is a significant consideration when projects need to be implemented. Interest rates play a role in what a dollar is worth at any time. For instance, $500 buys you more today than it will in 10 years’ time; it was also worth more ten years ago.

A PESTLE Analysis

Is a tool which is used to identify and analyse the key drivers of change in a strategic or business environment. This type of analysis can be used for:

business planning,

strategic planning,

marketing planning

product development

organisational planning

Decision Trees and matrices

A Decision Tree is a graph that uses a branching method to illustrate all the possible outcomes of a decision. A Decision Tree may be useful for focussing a discussion when a group must decide on the best solution.

It allows a business to weigh the possible actions against one another based on costs, probabilities and benefits. They can be used to drive discussion or can be used to map out an algorithm that predicts the choice mathematically.

By calculating the expected value of each choice in the tree, you can minimise the risk and maximise the likelihood of making the correct decision.

Some decision trees and matrices enable decision-makers to arrive at the preferable course of action.

SWOT Analyses

A SWOT analysis is one of the fundamental business decision-making tools that enable managers to gain insight into the viability of a project. As it relates to cloud computing, analyse each option and provider offer to determine which option is the best for the business


Question 2:PESTLE – Political, Economic, Social, Technological, Legal, Environmental

SWOT – Strengths, Weaknesses, Opportunities, Threats


Activity 9

1. List the elements which need to be assessed when developing a business case for the cloud computing needs of the business?

2. List five (5) key WH questions which could be asked when preparing the business case.

Question 1: Benefits Opportunities Risks Costs Timescales Impacts on operation Organisational capability to deliver the outcomes, e.g. implement the cloud-

based system

Question 2: Why do we need cloud computing services? Who is involved? Whom will it benefit? When will it be implemented? Where will ...? How much will it cost? How long will it take? How many services? How will each stage be monitored?


Activity 10

1. What does the acronym SMART mean?

2. Explain the process which is followed when implementing the Eisenhower Matrix

Question 1: Specific (simple, sensible, significant). Measurable (meaningful, motivating). Achievable (agreed, attainable). Relevant (reasonable, realistic and resourced, results-based). Time-bound (time-based, time-limited, time/cost limited, timely, time-

sensitive).

Question 2: Do first Do later Delegate Eliminate


Activity 11

1. List and explain three (3) key considerations which need to be factored when preparing a budget for implementing a cloud computing service.

Question 1: License fees fall away – these are usually staggered or annual – and cloud

services are paid on a month-to-month basis. Consider structuring some services to take advantage of savings and

determine if there will be any income from shared services with third parties.

Service fees based on usage fluctuate from month to month, so implement triggers to alert departmental heads and the finance department when thresholds approach maximum capacity.

Ensure that subscribed applications are being used by conducting audits regularly. Departmental heads need to report on applications no longer in use.

Investigate costs associated with high and low usage times to take advantage of cheaper application hours.

Post-migration costs include training, compliance with legislation and the changes you might need to make to security and privacy protocols.

Ongoing administration of cloud services, although not as intensively as regular IT labour costs, the system still has to be managed.

Scheduled upgrades and additional migrations. Envisaged applications and access schedules. Testing of new applications.

Activity 12

1. List the six (6) steps in the development of a communication plan

2. What are five (5) key concerns which may need to be addressed when communicating the plan?

3. When applying active listening skills, what are the actions which need to be demonstrated?

Question 1: Understand what you need to communicate Define communication plan objectives Identify audiences and demographics Identify the communication channels Timelines for rollout Monitor, evaluate, revise


Question 2: Unclear measurement criteria Poorly defined outcome measures Vague and confusing communication No synergy with system implementation team Incomplete survey questions Qualitative and quantitative questions asked in the same survey/feedback

session No, follow up with feedback and concerns Inadequate time for design, implementation and analysis of survey data Poor stakeholder engagement Messages not designed for the audience to understand Dishonest information Unpredictable communication timelines Inconsistent messages for different audiences Benefits are too good to be accepted by the audience

Question 3: Respect what the other person and what they are saying Verbally repeat the speaker's message and ask questions to clarify the

message. Avoid distractions such as messages on your cell phone or an email prompt. Empathise with the speaker Provide a reason for asking a question Get agreement about the outcome of the discussion.

Activity 13

1. List key principles which need to be followed when creating a training strategy.

2. What are the fundamental principles of coaching?

Question 1:1. Proposal: Identify the objectives, how successful implementation will be

measured and how the training will impact the organisation’ reputation and finances. Depending on the size of the organisation, including the training as part of the manager and employee KPIs. Include realistic timeframes and financial requirements.

2. Obstacles and constraints: Outline obstacles (e.g. resistance to change) and constraints (e.g. decentralised work streams) by using the PESTLE analysis method.


3. Research and recommendations: Outline how training providers were researched and reasons for recommendations. Align the proposals with the objectives the implementation- and communication plans.

4. Clarify training support: Detailed training and support roadmaps provide management with a guide to ensure their support of the strategy.

5. Training tools: Discuss the various training tools available and how it supports each demographic. Address accessibility through mobile devices, eLearning and portals as well as group and classroom options.

6. Coaching and learning support: Identify coaches and other support networks to ensure employees and customers have accessible resources during and after the transition.

7. Evaluation of training: Outline the methods of establishing the outcomes of training and how customers accept the changes and how gaps will be addressed.

8. Resource requirements: Detail all resource requirements – financial, premises, time, human, tools – and if additional training experts might be needed, and if so, their qualifications and training plan.

9. Ongoing training: Discuss ongoing training needs and schedule.

10.Alignment: Ensure training schedule aligns with the implementation plan and communications strategy

Question 2: Task-focussed

Programme is short-term

Performance and outcome drove


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