By Goran Novkovic, MESA Member, CQA, CSQE, ITIL, APM, PMP, PEng
This blog is part of a series called Manufacturing in the Cloud. This series aims to assist manufacturing organizations to evaluate how they can overcome challenges and maximize cloud computing benefits. As cloud computing services mature both commercially and technologically, this is likely to become relatively easier to achieve.
Cloud computing is revolutionising the way manufacturing organizations are implementing their information systems and using their critical assets. It promises better and more efficient usage of resources and virtually unlimited scalability and greater flexibility -- all at an attractive cost.
However, adoption of cloud computing models carry a number of technical and business risks. Well, risks are nothing new even without clouds, and I am sure that every manufacturing organization already has its own risk management methodology in place. But have you thought of Business Impact Analysis (BIA)?
The manufacturing organizations should analyze negative impacts that bad things happening can have on their business. BIA is highly recommended for this because it represents the systematic process of determining and evaluating the potential effects of an interruption to business operation. The business impact analysis should be carried out as part of a cloud service adoption process by the manufacturing organization.
As we previously discussed, when a manufacturing organization moves data and software applications to the cloud, they are placing a certain level of trust to Cloud Service Providers (CSPs). Thus, manufacturing organizations lose a certain level of control over these critical assets and there is risk associated with that.
To mitigate risk, all security requirements must be clearly defined, analyzed and communicated to ensure that if they move assets to the cloud, they still adhere to all applicable laws and regulations. There is no compromise about that! You don’t want to see that your manufacturing organization is on the main page of newspapers.
For widespread adoption of cloud computing services, manufacturing organizations must assurance that Cloud Service Providers (CSPs) are trustworthy and they are doing everything in their power to protect data and software applications of the manufacturing organizations. CSP has to be carefully selected based on well-defined business requirements. Adopting manufacturing organizations must be confident that the services outsourced to the Cloud Service Provider, including any important assets will not be disrupted and compromised. Even a small incident in the cloud can have a large impact on a manufacturing organization. Again, you work hard and you don’t want your manufacturing organization to become famous overnight in a negative way.
EXPECTATIONS FROM MODELS
speed time to market, SaaS model is associated with least control over resources and the
highest risk for the organization.