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RIP, Boeing 747

  • On 3 December 2020

For 50 years, the Boeing 747 has symbolized the grandeur of modern air travel and the utmost sophistication in aerospace technology. She even became known as “the queen of heaven”

But today, 747 is heading towards the end of its days. Too big, too inefficient, too thirsty for fuel and too rooted in a bygone era.

One of the 747’s largest customers, British Air, decided to take the iconic aircraft out of service four years ahead of schedule due to the devastation of the impact of COVID-19 on the travel industry.

For the technology sector, could there be a parallel with this paradigm shift in the air transport sector?

Will the growing demand for cloud computing cause companies to abandon their mainframes and other on-premise systems? Business leaders caught in the vertigo of the cloud revolution will begin to consider their systems some of which, like the 747, have been in service for half a century, too big, too old, too inefficient and deeply ingrained and customized to business processes that are transforming quickly for business needs?

The IT technology sector is very complex and articulated, based above all on people and ideas; The evolution of technology has made solutions increasingly modular both with and integrable, which makes it possible to coexist hybrid systems, in the cloud and on premise.

In this sector, especially for large companies and for “core” processes, the replacement of on-premise processes, sometimes highly customized with more standardized “cloud” processes, will not be immediate and a possible “switch-off” of on-premise systems is to be considered diluted over time.

It is true, however, that current companies have a lot of entropy in their systems, which is often derived from factors such as:

Business processes designed for the past.
Organizational structures designed for the past.
Business models designed for the past.
Human resource management strategies designed for the past.
Obsolete clear distinction between “back office” and “front office” processes in customer engagement & management processes.
Non-innovative mindsets that relegate IT to mere support of business needs

Who before the others will be able to intelligently exploit the opportunities in terms of reducing the barriers between business processes, communication, use of data in a pervasive, fast and intelligent way and process integration will be able to take advantage of competitive advantages also in business.

And all this scenario will probably be reserved for those who will be able to take advantage of the many technological and application opportunities offered by cloud-based systems, more than for those who will try to continue adapting their “ERP-747” without applying agile digital transformation logics, especially to processes. peripherals according to the logic of “Bimodal IT” illustrated by Gartner.

 

Paolo Ponte

Sales & Marketing Manager