The adoption of cloud computing in supply chains. Is this a similar case to the adoption of ERP?

Last week we talked in class about ERPs (Enterprise Resource Planning). We learned that these systems have plenty of functionality and, in many cases, they are used at a very low percentage of their capacity, either because of ignorance or mistrust, limiting the benefits to be gained from them. Basically, ERP systems are used for non core processes. I worked for seven years with Oracle (PeopleSoft) ERP in a government institution in Mexico and my experience confirms this situation. I remember that my boss made an analogy between under-utilization of ERP and cars: it is like having a Ferrari and driving it only inside a garage.

According to some specialists, this pattern will happen again with the adoption of Cloud Computing technologies in supply chains. From the wide range of options involving cloud computing (infrastructure-as-a-service, platform-as-a-service, software-as-a-service) companies will adopt only a few of them and will have a hybrid scheme, with "public" cloud and "private" cloud services. We should understand private cloud as cloud services (virtualization, multi-tenants applications) offered by the same company for the same company.

Public cloud has a great potential only (for now) in those areas of the supply chain where collaboration between all the participants is important. One example could be an inventory (as mentioned in class) that is shared by several companies  in which public cloud could be very useful by enabling companies to provide timely information to manufacturers, and consequently makes the inventory process more efficient by reducing time and uncertainty.

But this process will be possible only if it comes along with a cultural change, according to Ian Finley, vice-president of research at AMR Research who says "It revolves around political issues that require a change of mindset. People have to think of themselves as part of a supply network rather than as individuals, and it is a difficult shift."

The future is still uncertain for me, but I think it is time to trust on IT, what do you think?

A hybrid scheme is really less risky than moving completely to the public cloud?
Is it only an unfounded belief that cloud computing cannot offer the same results than on-premises systems?
Do we have to wait some years to see what are the results of cloud implementations (as with ERPs)?
Should we rely on forecasts that see cloud computing as the IT driver in the upcoming years?









Reference: http://www.computerweekly.com/feature/Cloud-computing-The-answer-to-supply-chain-woes