Cloud Computing and Business Generation †MyAssignmenthelp.com

Question: Discuss about the Cloud Computing and Business Generation. Answer: Innovation: The term innovation refers to the application of new ways and methods to do things in order to achieve expertise and efficiency. The global industries like the tourism, leisure and events are undergoing rapid innovation to achieve efficiency and sustainability. The tourism companies today use technology like cloud computing to integrate their business operations to make them more efficient. Application of innovation in TLE organization: The tourism companies today use technology like cloud computing as their focal technology to manage their complex business operations. The tourism and eventmanagement organizations today serve several customers having diverse requirements. They have to coordinate various things like destinations, accommodation, flights and cars rentals as per the requirements of the customers or travelers. Again, they have to manage customers having various needs like upper class leisure customers prefer boutique hotels while business customers like multinational companies prefer five star hotels with formal environment for their delegates. It is clear that they have to coordinate between these customers and any change in their requirements has impact on the entire booking and pricing of the company for particular customers. They are also required to communicate the changes to the parties like the accommodation owners. This business situation clearly points out that the tourism business organizations require to use technology which would enable them to coordinate between the customers and their business partners like hotels (Hashem et al. 2015). They are also required to integrate their internal process like pricing with the changing customer requirements. Moreover, they also have to avoid error of multiple entry and error of no entry while accounting of payments received from customers. Cloud enables the tourism companies to gain and share the information with the concerned parties like hotel authorities and car rental companies. The internal stakeholders like the accounts departments can also use information to execute appropriate accounting entries. The marketing departments can store and manage the customer data and use it for future business generation as shown below (Rittinghouse and Ransome 2016). This analysis clearly points out that cloud cloud computing help business organizations to overcome challenges of managing multiple business partners and customer requirements by integrating several business processes. Challenges faced by TLE businesses and their use of cloud computing: The following are the challenges faced by TLEs which they counteract by using cloud computing: Challenges Use of cloud computing technology 1. Integrating various stakeholders (internal and external) Cloud computing enables TLEs to communicate customer information to multiple stakeholders like hotel operators and car rental operators 2. Revenue generation Simultaneous booking of hotels and cars as per customer requirements generates revenue from customers 3. Future business generation Satisfied customers can give references which companies can store using cloud and use for further business. Can boost introduction of more innovative travel packages. 4. Risk mitigation Can communicate risks like financial risks and political risks to customers and business partners to take appropriate actions 5. Complex internal recording of bookings (including booking cancellation or sales returns) Accounts departments can instantly carry on accountings for the bookings, thus minimising chances of accounting errors. Sales return of bookings can be accounted instantly. Marketing department can use client information available on cloud for forecasting future business (Botta et al. 2016). Significance of innovation and technology in achieving competitive market advantage: The use of cloud computing has enabled the business organisations to integrate their multiple business processes and multiple stakeholders, thus gaining competitive advantage in the market. For example, the tourism companies are able to receive and process orders from customers both on their official websites and walk-ins in their offices. Cloud computing enables these companies provide accurate information to customers about hotels, flight tickets and car rentals. This available of accurate information encourages customers to buy travel packages from these companies which generates revenue for the tourism companies. The customers can also book hotels and car rentals as per their requirements which is communicated to the hotel and car rental operators, thus generating revenue for them (Al-Aqrabi et al. 2015). Again, the TLE companies can also communicate changes in the customer requirements to these stakeholders. Thus, cloud computing enables the tourism companies and their business partners like hotel operators to process multiple customer requirements accurately within the specified time, thus generating revenue from customers. Thus cloud computing enables them to provide high quality services to customers, thus enhancing their satisfaction level and chances of repeat bookings. Loyal customers can also provide references which the companies can approach for future business. This shows that cloud computing allows TLEs to generate revenue and gain competitive advantage in the market (Chang, Kuo and Ramachandran 2016). About cloud computing (focal technology): Cloud computing is a technology which allows the users like business organisations and their customers share resources like information. The system allows companies to acquire and share large masses of data without expanding their present computer infrastructure, thus enabling them to gain economies of scale. There are three models of cloud which business organisations can use. The private cloud is used for internal communication, the public cloud is used for communication with external stakeholders while the hybrid cloud model combines both private and public cloud (Daz, Martn and Rubio 2016). History and development of cloud computing: The cloud was developed around 1960s based on time sharing using Remote JOB Entry system. The system was developed for companies like IBM and DEC. The cloud computing in its present form came into existence in 2000s and saw entry of multinational companies into the sector. Amazon entered in 2006 while Google entered in 2008. The cloud experts saw wide opportunities in the market of cloud computing. Microsoft launched Azure in 2010 making the market even more competitive. Today cloud computing is a highly competitive market with MNCs like Amazon, IBM and Microsoft providing cloud platform to companies all over the world. The system finds current application in data sharing and storage by MNCs all round the world. Current application: The application used by companies to acquire, maintain and share business information within the organisation and their external stakeholders. Advantages and disadvantages:. Advantages: Integration of large amount of business data. Accurate decision making More business generation and revenue earning. Competitive advantage. Disadvantages: Initial installation cost is high. Require additional training of personnel. Exposes data of companies to data thefts. Estimated cost of installation of cloud: Installation cost: $0.125 per hour for Amazon EC2 and $0.030 for Amazon EMR price. The rate would vary according to the cloud product chosen (aws.amazon.com 2018). Cloud engineer: $ 112384 per year Technological charges: Vary with the brands and configuration type. References: Al-Aqrabi, H., Liu, L., Hill, R. and Antonopoulos, N., 2015. Cloud BI: future of business intelligence in the cloud.Journal of Computer and System Sciences,81(1), pp.85-96. Amazon Web Services, Inc. 2018.AWS | Amazon EMR | Pricing. [online] Available at: https://aws.amazon.com/emr/pricing/ [Accessed 21 Mar. 2018]. Botta, A., De Donato, W., Persico, V. and Pescap, A., 2016. Integration of cloud computing and internet of things: a survey.Future Generation Computer Systems,56, pp.684-700. Chang, V., Kuo, Y.H. and Ramachandran, M., 2016. Cloud computing adoption framework: A security framework for business clouds.Future Generation Computer Systems,57, pp.24-41. Daz, M., Martn, C. and Rubio, B., 2016. State-of-the-art, challenges, and open issues in the integration of Internet of things and cloud computing.Journal of Network and Computer Applications,67, pp.99-117. Hashem, I.A.T., Yaqoob, I., Anuar, N.B., Mokhtar, S., Gani, A. and Khan, S.U., 2015. The rise of big data on cloud computing: Review and open research issues.Information Systems,47, pp.98-115. Oliveira, T., Thomas, M. and Espadanal, M., 2014. Assessing the determinants of cloud computing adoption: An analysis of the manufacturing and services sectors.Information Management,51(5), pp.497-510. Rittinghouse, J.W. and Ransome, J.F., 2016.Cloud computing: implementation, management, and security. CRC press.