Linking unique value proposition to standard cloud systems

'Dutch companies need to move to the cloud at platform level'

‘Nederlandse bedrijven moeten naar cloud op platformniveau’
  • 11 Jul 2024

Dutch companies have made progress, but are still lagging behind when it comes to using the cloud at platform level. This is the view of Ragnar van der Valk, cloud expert at PwC, following the EMEA Cloud Business Survey 2023. He talks about how large companies can keep up with newcomers in cloud adoption, and learn from the East.

Unique value proposition

For Van der Valk, there is a reason why Dutch companies are lagging behind in cloud adoption at a platform level. 'First, many organisations still think they are unique in certain areas where they are not or should not be. Processes such as Purchase-to-pay should be consumed out of the (cloud) box.’

'If you differentiate yourself in a particular market segment, all other parts (your non-differentiating capabilities) should be consumed as standard as possible from the cloud SaaS providers.  This means you consume the majority of the market standards. What remains, your so-called "differentiating capabilities", is the unique value proposition that you actually bring to the market and customers.  That is where the real platform approach kicks in, by building these capabilities onto the (cloud) platform a thereby investing and innovating only there where it makes sense.’

'Only when companies know what makes their value proposition unique they can start putting value into your journey to cloud', says Van der Valk. 'Cloud does not only become a tech-play. Cloud is the new way for businesses to reinvent themselves, e.g. finding new revenue pockets, finding new ways of working in your go-to-market, new customer segments, or new or adjusted products and services.'

When asked how companies should look for their unique value proposition, Van der Valk explains that it involves very specific capabilities. 'Some of these capabilities are not in the technological solutions, but you should think much more in terms of the brand experience of a company. Of course with the support of IT or customer service.' 

Purchasing innovation and linking it to own business operations

Van der Valk uses uocoming markets like India and China as an example of how they are implementing the cloud down to the last detail at platform level. 'Chinese companies are adapting very quickly to the disloyal customer, by facilitating this group little by little, they are increasingly drawing customers into the platform. This requires partnerships with partners who can deliver the desired innovation. By purchasing that piece of innovation and linking it to their own business operations, Chinese companies are able to increase their service levels.'

In contrast, while European and Dutch markets focus on becoming more agile through gradual digitalisation efforts, China leverages agility as inherent to survival in a fiercely competitive landscape. 'In Europe and the Netherlands, we are mainly trying to become agile. For example, by working in an agile way to implement digitalisation. In China, it’s all about being agile, it’s in their DNA. It is something we can grow towards, with small steps forward. With the mindset that you can bring a little more innovation into your processes every day.'

Van der Valk is aware that privacy legislation in Europe is an obstacle to building a transparent customer relationship. 'The market is usually faster than any legislation that can be made on it. Companies need to use the moral compass as a starting point and keep each other sharp as they work together. If you push the boundaries but don't cross them, you can regulate legislation instead of waiting for it.' 

Tips for cloud adoption

One of the findings of the EMEA Cloud Business Survey 2023 is that cloud adoption is high among Dutch companies, but only sixteen percent have already adapted their processes accordingly. Van der Valk sees that companies have already taken many steps. 'But this mainly concerns the use of applications for HR, sales and marketing. At the platform level, we can do even more with cloud adoption, such as software development and using data for new insights.' 

Of course, the newcomers to cloud adoption, the so-called cloud native players, are by nature much better at reducing complexity. Van der Valk says that 'cloud natives' simply ensure that their processes are not as complex as those of more traditional companies. What can more traditional companies do in return? Van der Valk gives some tips: 

  • Develop new business models 
  • Start new digital entities 
  • Simplify business units at a slower pace and move them to the cloud 

'I always compare it to renovating a house,' says Van der Valk. If you want state-of-the-art, renovating is sometimes more complicated than starting from scratch.'

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Ragnar van der Valk

Ragnar van der Valk

Partner Technology, PwC Netherlands

Tel: +31 (0)65 157 18 35

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