Change is difficult – benefit you can see vs future promise aka The Marshmallow experiment

(Stephen Parker, Head of Cloud Strategy, NewLease)

Over the years I have spent a lot of time working with partners to help then through the challenges of changing their businesses to support a cloud model.

The bottom line change is difficult.

But why?

I was in a session at WPC with my good friend Darren Bibby from IDC and he talked about a piece of research from Stanford University (http://en.wikipedia.org/wiki/Stanford_marshmallow_experiment) that was all about the benefits of what you can see now vs promised future benefits.

The conclusion of the research is that despite the apparently clear benefits of waiting for future value the majority take what they can see now.

Why is this relevant to a cloud shift?

People (and ergo businesses) find it difficult to move from the big hit wins of the single “elephant hunter” sales success to the long term benefits of a recurring (annuity) revenue stream that takes time to build in value.

 

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About SJKParker

Discovering exceptional stakeholder value through innovative technology investments. 25+ years’ experience as a business and technology hybrid. Providing creative and challenging thinking that delivers alignment of essential business needs with innovative technology. Passionate leadership and business model transformation across large enterprises, start-ups, SMBs, and business turnarounds. Experience gained from working closely with leading software vendors on their global cloud strategy, provided associate services to industry analysts, sharing knowledge as a keynote speaker and writing a variety of books covering the Cloud space. Painting business pictures with an IT brush, providing Experience, Passion & Impact Specialties: Business model transformation, Evangelist and presenter, Cloud Computing, Software as a Service, SaaS, Office 365, Azure, Solution Architect, eProcurement, SPLA, Subscription licensing
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