This paper aims to explain how cloud computing – conducting business functions on shared, off‐premises computing systems – introduces strategic options and business‐control challenges for executives. For example, cloud computing offers ubiquitous access to applications for interacting with all parts of a firm's value chain and it connects an organization with the rich learning opportunities percolating in communities formed by the users of the service.
The paper introduces a capabilities‐comparison‐matrix approach that executives can use to uncover, evaluate and rank opportunities for employing cloud computing to advance a challenger enterprise's growth strategy.
For a firm hoping to grow, but with fewer resources than its rivals, cloud computing offers the potential to do more with less, thus benefiting an agile, strategic adopter of its rapidly evolving technology and service.
Using cloud‐based services, a challenger enterprise can identify, qualify, engage and manage a global network of capabilities to match the captive, in‐house activities of a bigger, better‐established competitor.
The practical question for adopting any new technology is, “What is the value of what can we do (with the technology) that we could not do before?” To clarify choices, a capabilities‐comparison matrix helps decision makers focus on which business activities should go into the “do” and “don't” classifications.
