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Trends and Best Practices for Implementing SaaS for Your Business

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presented by Jeff Kaplan of THINKStrategies at the TrueConnection 2008 Sales Performance Management Conference, hosted by Callidus Software

presented by Jeff Kaplan of THINKStrategies at the TrueConnection 2008 Sales Performance Management Conference, hosted by Callidus Software

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  • we had recently done a whitepaper on SaaS vendor selection - http://www.hyperoffice.com/saas-reviews-for-smbs/. Rusty Weston will also be giving a free webinar on the subject on 5th June 2009, in case anyone wants to listen in. You can register for the study at the above link as well.
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Trends and Best Practices for Implementing SaaS for Your Business Trends and Best Practices for Implementing SaaS for Your Business Presentation Transcript

  • Trends & Best Practices for Implementing SaaS Presented by, Jeff Kaplan Managing Director THINKstrategies [email_address] 781-431-2690 ©2008, THINKstrategies [www.thinkstrategies.com] Slide
  • Primary Drivers of SaaS
    • Changing competitive forces
    • Changing workplace requirements
    • Changing economic & ecological conditions
    • Changing technologies
    • Changing priorities & sourcing policies
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • The Evolution of Man ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • The Nicholas Carr Affect ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide "...Imagine what future generations will see when they look back at the current time...won't the way corporate computing is practiced today appear fundamentally illogical -- and inherently doomed?” “ The End of Corporate Computing” Nicholas Carr, The MIT Sloan Management Review, Spring 2005.
  • Changing Customer Expectations
    • Old,
    • Capital Investment
    • Complexity, Customization
    • Reactive Maintenance
    • Response Time
    • Customer Support
    • Limited Responsibility
    • Outsourcing Alternatives
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
    • New,
    • Operating Expense
    • Simplicity, Utilization
    • Proactive Management
    • Ongoing Monitoring
    • Automated Delivery
    • Higher Accountability
    • Out-Tasking Options
    Enterprises Seeking to Generate Greater ROI at Lower TCO.
  • Rewiring the World, From Edison to Google
    • “ A hundred years ago, companies stopped generating their own power with steam engines and dynamos and plugged into the newly built electric grid…Today, a similar revolution is under way.”
    • - Nicholas Carr
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • Shift from Outsourcing to Out-Tasking
    • Businesses seeking functionality, not technology.
    • IT outsourcing deals have failed.
    • Selective outsourcing, or ‘out-tasking’ gaining attention.
    • SaaS & cloud computing is a form of out-tasking.
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
    • Networked applications
    • Enhanced user experience
    • Subscription pricing
    • Real-time analytics
    • Continuous enhancements
    • Self-provisioned services & toolkits
    • Aggregated data & benchmarks
    • Multi-tenancy secondary
    Defining SaaS ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • SaaS Adoption Today ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: THINKstrategies/Cutter Consortium © 2007
  • SaaS Deployment Plans ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: THINKstrategies/Cutter Consortium © 2007
  • Size of SaaS Deployments Growing ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide SaaS Vendor Customer # Users Salesforce.com Misys 40,000 SuccessFactor Wachovia 85,000 Concur “ A Financial Services Company” 185,000 Workday Flextronics 200,000 Authoria “ A Leading Food Services Company” 340,000
  • SaaS Expands from Business Apps to IT Management ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide BUSINESS APPLICATIONS CRM SFA … Collaboration SCM … ERP Finance … Front Office Inter Office Back Office Security Systems Mgmt … Network Mgmt Remote Access … Data Protection Storage … IT Management
  • Top Ten Showplace Application Categories ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: SaaS Showplace Customer Relationship Management 103 Collaboration 80 Accounting/Financial 78 Document Management 67 Project Management 62 Enterprise Resource Planning (ERP) 55 Marketing 49 Human Resource Management (HRM) 47 eCommerce 46 Messaging 44
  • Top Ten Showplace Industry Categories ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: SaaS Showplace SMBs 110 Banking/Financial Services 102 Manufacturing 91 Technology 80 Healthcare 72 Retail 69 Government 63 Professional Services 55 Telecommunications/xSPs 43 Software 42
  • SaaS Market Adoption Forecast ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Market Penetration 2010 2008 2006 2004 Innovators Early Adopters Mainstream Buyers Laggards
  • Cloud Computing: The Next Wave ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • New Challenge: Cloud Computing Outages ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide “ Amazon S3 Outage Rains On Cloud-computing Parade” “ Outages Force Cloud Computing Users To Rethink Tactics”
  • Shifting Adoption Patterns ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Unilateral End-User, SBU Adoption of SaaS Solutions Enterprise-Wide Acceptance and Adoption of SaaS
  • Living in a Hybrid World
    • Companies prefer choice.
    • Businesses seeking combination of on-demand/on-premise solutions.
    • Cross-platform integration essential.
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • SaaS Evolution ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide SaaS 1.0 SaaS 2.0
    • Standalone point apps
    • Focus on ease of use/price
    • One size fits all, minimal customization
    • Horizontal applications
    • Limited interoperability
    • Emphasis on lower TCO
    • Specialized vendors
    • Combination of choices
    • Focus on added functionality
    • Multiple configurations, greater versatility
    • Vertical/industry solutions
    • Easier integration
    • Emphasis on higher ROI
    • Strategic sources
  • On-Demand Services & The IT Industry Inversion ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Services Technologies Past Future The IT Industry Inversion
  • Key Challenges Facing SaaS Vendors
    • Re-architecting applications
    • Re-structuring revenue models
    • Repositioning marketing
    • Re-orienting sales/support staff
    • Surviving market shakeout
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • Enterprise Expectations & Challenges for SaaS
    • Can you provide a better user experience?
    • Can you create a different type of community?
    • Can you support hybrid environments?
    • Can you permit rapid on-boarding?
    • Can you track service usage levels?
    • Can you measure performance levels?
    • Can you identify & resolve service issues?
    • Can you verify SLA compliance?
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • Selecting a Strategic Source for Sales Performance Mgmt.
    • IT’s Role is Critical in Selecting SaaS Solutions
    • Steps for Success,
      • Rate the Criticality of the SaaS Solution
      • Plan Effectively to Avoid Silos
      • Ensure Risk Mitigation via Flexibility of On-Demand and On-Premise Platforms
      • Scale to Meet International Business Needs
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • More Steps for Success
      • Evaluate Security and Privacy Capabilities to Protect Critical Corporate and Personal Data
      • Examine Ease of Integration with Existing Back-office Apps, Systems and Data Sources
      • Demand Proven, Consistent SLA Compliance
      • Request Customer References for Your Current and Anticipated Future State
      • Assess SaaS Vendor Viability and Stability
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • Summary & Conclusions
    • SaaS spreading
    • Market entering ‘gold rush’ era
    • Industry shake-out coming
    • Make strategic sourcing decisions
    • Use classic evaluation criteria
    • Focus on reliability, flexibility and viability
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
  • For More Information…
    • www.SaaS-Showplace.com
    • www.thinkstrategies.com
    • [email_address]
    ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide