Leaders look at two related technologies, the cloud and software-as-a-service (SaaS) when deciding which technology to use to manage their companies. They will also come across terminologies like IaaS, PaaS, cloud computing, private cloud, public cloud, and hybrid cloud in the world of the cloud.
By 2023, more than 90% of all businesses worldwide will rely on a hybrid cloud, according to a March 2020 estimate from IDC. Understanding cloud computing terms is crucial for choosing the best technology for your business since they have an impact on the systems and operations that make up your organization and how you deliver value to your clients.
Let’s examine the relationship between cloud computing and SaaS and how compatible both are with Mass customization.
Table of Contents
What is Mass Customization?
Mass customization accomplishes what it claims to. A production technique that strikes a balance between standardization and personalization by mass-customizing products at low unit prices.
Other names for mass customization include:
- Made-to-order
- Built-to-order
Mass customization, which is becoming more and more common in the retail goods industry but is also employed in the automobile, software, and financial sectors, enables buyers to buy a product that is more “them.” This is typically accomplished using a personalization toolkit located at the business’ front end or their eCommerce platform.
Manufacturers who can make customized products have an advantage over rivals who can only produce generic products.
Mass Customisation And Cloud Computing
Because cloud computing is based on Web services that are a) inherently abstracted, b) independent components, and c) accessible at every layer of the technology stack, mass customization is more natural, more flexible, and offers more potential for competitive advantage than in the wildest dreams of SaaS.
Metadata’s Function in Mass Customization
Hard-coded application functionalities in SaaS are transformed into metadata configuration options to enable mass customization.
Multi-tenancy, as an illustration, transforms hard-coded installations of numerous customer databases into a single database infrastructure where a distinct customer ID recognizes each customer deployment. To enable data-driven functionality, all technological marvels that separate one customer’s data from another customer’s data are abstracted to this single piece of meta-data.
Advantages of Mass Customization In Cloud Computing
- The Inherent Abstraction of Web Services: More Natural
For one clear reason—meta-data abstraction—cloud computing is more suited to mass customization than SaaS. Meta-data abstraction is a requirement for Web services but not for websites. To enable mass customization at all, SaaS applications must be carefully architected; for example, it is a matter of good SaaS application design discipline to use a multi-tenant database, programmable security settings, programmable page views, etc. Contrarily, every Web service function is intrinsically abstracted to meta-data in the API’s XML inputs and outputs.
- Independent components are more adaptable than monolithic applications.
The stock quote example from earlier illustrates another advantage of using discrete components over a monolithic program for bulk customization. A SaaS application may need to be modified and refactored at every layer of the software stack, from the database structure to the user interface, for example, by adding user-defined custom fields, in order to convert a single feature from being hard-coded to configurable. Additionally, the addition of new configuration options may have a variety of known and unknowable effects on already existing and seemingly unrelated capabilities, such as switching an address format from the default US postal format to one that better supports overseas clients. As a result, even the most straightforward changes to a SaaS service must be properly thought out and gets harder the more intricate the application.
Web services are loosely connected, comparatively autonomous parts. With little influence on other Web services, new functions can be added to existing Web services as well as completely new Web services established.
- Applications and infrastructure that are evolving, not just features
Imagine creating a SaaS program that, with the right configurations, could switch magically from CRM to ERP. Without even mentioning the subsequent settings, the difficulty of creating such an application is astounding. Once more, one thinks of the Force.com platform. Think about cloud computing now. Let’s say you keep the executables for the corresponding CRM and ERP applications on Amazon S3. Additionally, build a Web service with the calls gimme CRM and gimme ERP. When logging in, you choose CRM or ERP. This Web service can be accessed at the URL www.elastic.com or erp.com, and it instantly downloads the desired application and launches it on a farm of Amazon EC2 virtual server instances. Because Web services enable widespread customization, this clever method is feasible.
The Scope of Competitive Advantage
Cloud computing does not actually compete with SaaS, despite having more possibilities for mass customization than SaaS. Because clients will select one or the other depending on their needs, Amazon AWS and Force.com are unlikely competitors because they divide the market into high-end and low-end mass customization, respectively.
Cloud computing, competes with on-premise software like SaaS and provides many of the same advantages, including lower TCO and broad flexibility; however, unlike SaaS, cloud computing does not engage in direct competition for end-user applications. Every tier of the technological stack, from storage to user interface, is in competition for components. As a result, outsourcing and architecture are at the center of the competition. IT executives drive the adoption of cloud computing, whereas functional executives are typically the ones driving SaaS adoption. Cloud computing users must reconsider how they develop apps, using replaceable parts that might or might not be found behind their own firewall. Cloud computing suppliers should use mass customization to offer their customers orders of magnitude more functional diversity, deployment flexibility, and infrastructure elasticity in addition to lower TCO in order to get beyond this hurdle.
Conclusion
Mass customization has a number of benefits; it delivers a distinctive offering. A personalized product is by its own nature distinctive, and the client receives precisely what they desire. Since the customer’s preferences formed their product, rivals might not be able to provide the same thing.
Enhances consumer loyalty by consistently giving customers exactly what they want according to their specifications; you might notice an increase in customer happiness and loyalty, and it can lead to more profits.
