Deloitte Software As A Service Deloitte Seminar

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Presentation of Theo Slaats, partner at Deloitte, on "Software as a Service" during a seminar of Deloitte and Oracle on October 8, 2008 in Amsterdam.

Presentation of Theo Slaats, partner at Deloitte, on "Software as a Service" during a seminar of Deloitte and Oracle on October 8, 2008 in Amsterdam.

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  • 1. Software as a Service Deloitte Oracle Siebel on Demand Seminar 8 Oktober 2008, Amsterdam 1 ©2008 Deloitte. All rights reserved
  • 2. Software as a Service overview Introducing Theo Slaats Background • Theo Slaats (42) is a partner in the Customer Relationship Management (CRM) practice of Deloitte. • He specialises in Marketing Automation and Customer Relationship Management. • Most of his clients are in the Telecommunications and Consumer Business industry. Partner Office Details Experience Laan van Kronenburg 2 • CRM strategy and roadmap development 1183 AS Amstelveen • Strategic CRM transformation programme and call centre solution implementation. Phone: +31-20-4547018 • Inbound marketing implementation. Fax: +31-20-4547555 • Development of a European core sales platform and Mobile: +31-6-52672525 deployment to multiple countries across Europe. Email: tslaats@deloitte.nl • Implementation of a consumer dialog solution.
  • 3. Software as a Service overview Agenda • What is Software as a Service? • On-Premise versus SaaS • Is Software as a Service taking off? • Benefits & limitations • Total Cost of Ownership • Return On Investment • Total Economic Value • Getting started • How Deloitte can help 3 ©2008 Deloitte. All rights reserved
  • 4. Software as a Service overview What is Software as a Service? • Software as a Service are rich internet applications that are hosted by a third- party service provider and billed on a usage or per-user basis – Web Based, hosted applications – Delivers business applications anytime, anywhere – “On Demand” – No Hardware, No Software – the vendor owns and hosts the application – Multi-tenant, common infrastructure & codebase – Not the ASP model from the 1990’s • Selected players in SaaS 4 ©2008 Deloitte. All rights reserved
  • 5. Software as a Service overview On-Premise versus SaaS Deployment factors On-Premise SaaS  Hardware  Per Seat/Per user Per Month  Software Licenses  Development Initial Costs  Network  Development  Software Hardware Maintenance  Yearly subscription renewal Ongoing Costs  Upgrades  Customized end user training and  Customized end user training Training support critical for successful and support critical for deployment successful deployment  Need to have hardware to  Additional hardware not support expansion needed Scalability  Need to add new subscriptions  Can customize extensively, but  Limited customization, but Flexibility difficult to upgrade seamless upgrade paths customizations 5 ©2008 Deloitte. All rights reserved
  • 6. “25 Percent of New Business Software Will Be Delivered As Software As A Service by 2011” Quotation Gartner / November 10 2006 ©2008 Deloitte. All rights reserved
  • 7. Software as a Service overview Is Software as a Service taking off? • The Big Switch: from “One Machine” to “Living in the Cloud” • Cheap utility-supplied computing will ultimately change society as profoundly as cheap electricity did 7 ©2008 Deloitte. All rights reserved
  • 8. Software as a Service overview Is Software as a Service taking off? 8 ©2008 Deloitte. All rights reserved
  • 9. Software as a Service overview Is Software as a Service taking off? 9 ©2008 Deloitte. All rights reserved
  • 10. Software as a Service overview Vendor Perspective: The Economies Of Scale Of SaaS Business Models At Different Levels Of Maturity ©2008 Deloitte. All rights reserved
  • 11. Software as a Service overview Benefits & Limitations Benefits Limitations Maintenance and Compatibility upgradeability Recurring No/limited monthly cost hardware cost Customization Speed to market Configurability Capability limitations Scalability Security 11 ©2008 Deloitte. All rights reserved
  • 12. Software as a Service overview Total Cost of Ownership Cost Impact On-Premise SaaS Setup Cost Deployment Recurring Cost Small impact High impact ©2008 Deloitte. All rights reserved
  • 13. Software as a Service overview Return on Investment SaaS On-Premise 6 month Breakeven 27 month Value to Breakeven Risk Risk Customer Time Time Go Live: ~ 6-18 Weeks Go Live ~ 12 Months 13 ©2008 Deloitte. All rights reserved
  • 14. Software as a Service overview Total Economic Impact Scenario No. 1: Medium- Small Business With 100 To 249 Employees And 50 Users Scenario No. 4: Large Enterprise With 2,500 Employees And 500 Users September 2006, Tech Choices “Comparing The ROI Of SaaS Versus On-Premise Using Forrester’s TEI™ Approach” TCO: Total Cost of Ownership TEI: Forrester's Total Economic Impact™ methodology, includes key factors like benefits, risks, and flexibility of the deployment option. ©2008 Deloitte. All rights reserved
  • 15. Software as a Service overview Getting started  Software as a Service  On-Premise Is your project driven by business Do you have security restrictions against a sponsorship with limited involvement from third party storing sensitive data (privacy, the IT department? government, financial, etc.)? Do you require high level of customizations Do you require a low cost solution that to fit the business requirements or deep requires limited IT resources and budget? industry specific applications? Do you have limited custom integrations and Do you need to have complete control of require a simple upgrade strategy? down-times for maintenance? Do you need a fast implementation because Is loss of access to the system due to the timeline is aggressive and require a network issues not acceptable? solution that is easy to use? Are the business requirements handled by the provider's existing functionality (do not Is your volume of business transactions very allow a vendor to promise needed features high? as part of the next release)? Does the organization not have additional Do you have complex integration infrastructure resources to handle requirements? maintaining something new on premise? 15 ©2008 Deloitte. All rights reserved
  • 16. Software as a Service overview How Deloitte can help Sprint.2.CRM ™ Our Sprint.2.CRM methodology provides an established set of processes, tools, and templates for On Demand implementations. This methodology provides value by provides a project management framework with the delivery tools and templates to accelerate On Demand implementations. Project Management Toolkit Deloitte has developed an On Demand project management toolkit that enables our clients to track issues, requirements, and feature requests. Custom reports are then used to monitor requirements, system requests and enhancements. SHAREHOLDER VALUE Enterprise Value Map™ How Value is Created (Value Drivers) Volume Retain and Revenue Growth Leverage Price Realization Selling, General & Administrative Improve (SG&A) Improve Operating Margin Cost of Goods Sold Improve (COGS) Improve Property, Plant & Equipment (PP&E) Improve Asset Efficiency Inventory Improve Receivables & Payables Improve Improve Company Strengths Expectations Improve External Factors The Enterprise Value Map™ is a practical tool that links potential improvement initiatives and shareholder value. It depicts Deloitte’s value Acquire New Income- Strengthen Customer Corporate/ Development Logistics & PP&E Inventory Receivables Grow Current Generating Pricing & Payables Managerial Execution Customers Customers Interaction Shared Service & Production Service Provision Efficiency Efficiency Assets Efficiency Effectiveness Capabilities Efficiency Efficiency Efficiency Efficiency What You Can Do (Improvement Levers: Business Processes, Assets Product and Product and Demand & Marketing & IT, Telecom Product Logistics & Real Estate & Accounts, Notes Operational Service Cash / Asset Supply & Finished Business and Organizational Service Management Advertising Development Distribution Infrastructure Goods & Interest Planning Excellence Innovation Innovation Management Networking Receivable Capabilities) Marketing & Price Merchandising Equipment & Work in Accounts, Notes Partnership & Account Sales Real Estate Materials Process & Program Sales Management Optimization Systems & Interest Delivery Collaboration Raw Materials Payable Customer Service Cross-Sell / Service & Human Production Delivery Business Relationship Resources Program Performance Up-Sell Support Delivery Strength Management Order Fulfillment & Procurement Agility & Retention Billing (Excluding Production Materials & Merchandise) Flexibility orientation - that we understand the intended business impact of our Strategic Business Assets Management (People, Technology, Intellectual Capital, Relationships, etc.) Financial Management efforts. Industry Print™ Sales Opportunity Management Level 1 – Core Processes: Focus Area (Sales and Delivery) Level 2 – Process: A recurring set of actions Deloitte’s years of experience in business transformation and process redesign culminates in a collection of pre-defined best practice process that produces value for a customer and O-010 O-070 O-120 consultants by transforming some set of “inputs” Identify Target Determine call Negotiate with into some set of “outputs.” Accounts approach / strategy customer • Time-based (month-end closing process, Obtain list of annual planning process) O-020 O-080 O-130 potential target • Event-triggered (customer inquiry process, Create Call on target Manage and Opportunity accounts track sales calls new product introduction) Determine targeting criteria prints organized by specific Industry. These Industry Prints™ are the O-030 O-080 O-045 Develop and Apply targeting Level 3 – Subprocess: A logical grouping of Update Call on target criteria Opportunity accounts Maintain Customer activities resulting in a workflow with multiple Credit Lines inputs and outputs which often involves multiple Identify key target accounts people and departments. O-040 O-090 Determine Overcome Establish contacts customer’s needs objections Level 4 – Activity: A discrete action, or set of actions, that has specific inputs and specific O-050 O-100 outputs, which can require a single individual or basis for defining future state processes. Once the Industry Print™ is Define sales Check resource schedule availability multiple people to complete. O-060 O-110 Determine call Develop quote objective and price modified for a specific client, the resulting Client Print™ is the intellectual property of the client. 16 ©2008 Deloitte. All rights reserved
  • 17. Software as a Service overview How Deloitte can help The below timeline represents typical heavy implementation offering for Siebel On Demand projects focusing on one key process area such as Sales, Service or Marketing. Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Project Prep This is a sample project timeline that needs modifications Require- based on specific scoping parameters of your implementation ments, Design Process & Scope Build System Test User Acceptance Testing Training Deploy Our Sprint.2.CRM methodology provides an established set of processes, tools, and templates for On Demand implementations. This methodology provides Go-Live value by provides a project management framework with the delivery tools and templates to accelerate On Demand implementations. Stabilise A typical timeline for a project driven by an approach that captures and prioritises business requirements based on time, cost/benefit and impact to the business in the context of what can and cannot be readily accomplished with an On Demand CRM application. 17 ©2008 Deloitte. All rights reserved
  • 18. Software as a Service overview How Deloitte can help – Implementation Approach Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12 Plan Design Build Test Deploy Support Plan Requirements, Process & Scope Require- ments Analysis & Joint Application Initial Design Design (JAD) Planning Design Integra- tion Design Review & User Accep- Build tance Testing Unit Application Build Review (ABR) Testing Build Complete Implementation Deployment System Test User Acceptance Test Training Cutover Go-Live Post Go-live Support The above timeline represents typical heavy implementation offering for Siebel On Demand projects focusing on one key process area such as Sales, Service or Marketing. 18 ©2008 Deloitte. All rights reserved
  • 19. Software as a Service overview Questions 19 ©2008 Deloitte. All rights reserved
  • 20. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its Member Firms. 20 ©2008 Deloitte. All rights reserved