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 Friday, 27th January 2012, 11:13:52

IT changes 'could revolutionise business practices'

IT changes 'could revolutionise business practices'

Changes to web hosting systems in businesses could be "revolutionary" for company practices.

This is according to Dr Mark Thompson of the Cambridge Judge Business School, who suggested that the ability to distinguish between functions and processes in IT could provide swappable resources that can be easily outsourced and improve efficiency within a firm.

"What effectively has happened is that IT has become able to ramp traditional vertically-integrated business logic, so stuff that really couldn't be separated out before, in common standards that introduce a dynamic a little bit more like open source," he said.

The expert, who is currently advising the Cabinet Office on the development of an educational programme for senior policymakers and civil servants, added that specific codes used by IT systems can be swapped around so that everything works with everything else, giving a wider breadth of usability and integration.

Speaking on the business school's podcast, he also commented that the reasons the changes are revolutionary is due to the ability to chop up an HR function and a finance function and interchange them.

"Rather than outsourcing the whole lot, what I can do is distinguish between the utility and the commodity elements of that function," he explained.

Furthermore, the revolutionary idea that business logic can be placed in "swappable cassettes" has significant commercial implications, not only for government IT bodies, but for all large process-heavy organisations.

Connected Business contributor Stephen Pritchard recently told the Financial Times Connected Business Podcast that changing data regulations in the internet world could significantly impact the way that online businesses operate and that proposed legislation like the Stop Online Piracy Act currently being debated in the US could have ramifications on many sectors.

He suggested that this could also affect the cloud computing industry.

John Engates, chief technology officer of IT firm Rackspace, added that some businesses are reluctant to adopt cloud computing as they are unsure of the regulations relating to data storage and whether or not they could be in breach of them.

Posted by Phil Williams

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 26-01-2012: Google to merge privacy policies into one

 26-01-2012: Google to merge privacy policies into one

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 25-01-2012: Web design and usability 'fundamental for business'

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