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Jonathan VaughanManaging Partner
Have your cake and eat it:Build unique solutions on common platforms
Time and Tide wait for no man
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Computers
Networks
Applications
Information
Typical enterprise application architecture
Archetypal business process – the form
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Enterprise application issues
Complexity burden
Business models change faster than software
Business applications need process and data integration
Legacy barnacle build up
Internal application limitations
One shot development process
Hand crafted customization
ERP package limitations
Mass customization costs
On-site platform integration and support requirements
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Wikipedia – SaaS: On Demand enterprise applications
Network-based access to, and management of, commercially available (i.e., not custom) software
Activities that are managed from central locations rather than at each customer's site, enabling customers to access applications remotely via the Web
Application delivery that typically is closer to a one-to-many model (single instance, multi-tenant architecture) than to a one-to-one model, including architecture, pricing, partnering, and management characteristics
Strengths: Location, Time, and Platform independence
Concerns: Data access, Security, Performance, Support, Application fit
Weaknesses: Browser interface, Real Time capabilities, Legacy integration
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All characteristics of traditional systems implementations
Enterprise application implementation barriers
Long Time FramesLong Time Frames
Large Organizational ImpactLarge Organizational Impact
Major Process ChangesMajor Process Changes
High Up Front CostsHigh Up Front Costs
The consumer web succeeds by reversing these factors (eBay, Google, etc.)
Packaged ERP systems typically cost 3 - 4 times the license cost to implement
The On Demand Service model also reverses these factors
Historically major internal systems projects have greater than 50 % failure rates
<3 month implementations
Flexible data sharing
Multi-phase delivery
Predictable variable costs
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End user application adoption factors
Easy to useEasy to use
Immediate benefitsImmediate benefits
Organizational supportOrganizational support
Maintainable customizationMaintainable customization
Business drivenroll out in accordance with organizational priorities
Active informationDashboards show the value of information and track key metric
EvolutionEnhanced services support continued innovation
Web GUIConsistent Graphical User Interface can be learned quickly
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On Demand - a new enterprise application environment
Nautilus: Expansion over time Cornucopia: The horn of plenty
On Demand suppliers regularly:
Upgrade infrastructure
Increase capacity
Improve functionality
Extend partner networks
On Demand solutions provide:
Best practice building blocks
High availability
Ubiquitous access
Business alignment: Integrated active information
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Traditional software adoption curve
Time
Pioneers
Early Adopters
Mainstream Late Adopters
Product Development Market Development Product Decline
Cost
Function
Impact of obsolescence
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Hidden costs of traditional on-site technology
Integration Spaghetti architectures
Deployment Vendor driven upgrade cycles
Change management Y2K scenario
Business process redesign Timeliness of systems delivery
Infrastructure support Budget iceberg
Technology availability Pioneer syndrome
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On Demand software adoption curve
Time
Pioneers
Early Adopters
MainstreamLate Adopters
Product Development Market Development Product Evolution
Function
Cost
Relative value continues to improve
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CRM - Public Sector starting point
Public Sector Traditional CRM Examples Marketing and Public Relations Fundraising Business Development Public Opinion Surveys
Small groups of specialized users Limited systems integration Automating semi-manual processes High value information Small to medium scope systems Customer management characteristics
Common CRM Characteristics
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But needs go well beyond CRM
Public Sector Beyond CRM Examples Customer Service
Quality Assurance
Incident Management
Campaign Management
Information Exchange
Regulatory Compliance
Users frequently use multiple systems Systems integration is required for
success Systems may be a component in a
larger process Emphasis on process controls and
tracking
Varied Non-CRM Characteristics
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Customization of On Demand applications
Customization Pros
Implementation politics
Enterprise Integration
End user productivity
Unique services
Customization Cons
Implementation time
Support cost
Maintenance complexity
Limit advantages of
common solutions
Key On Demand Customization Requirements
• Meta Customization – upgrade transparency
• Open API – well defined interface points
• Easy to use administrator tools
Not just enterprise integration any more
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On Demand integration challenges Data Integration
– internal records Transaction Integration
– internal users Application Integration
– internal/external users Process Integration
– external activity Information Integration
– external data Knowledge Integration
– context driven internal/external information and activity
ETL / Data Warehouse
SOAP / EAI
Web Portals / Services
Messaging / Mash Ups
Service Providers
Enhanced collaboration
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On Demand accelerates innovation
Architectural framework
Standardized, scalable, tested
Supports rapid iterative deployments
The benefits of new technology are shared with all
subscribers
Vendors are tackling key inter / intra organization challenges
Identity
Security
Change Management
Resource Management
Performance Management
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On Demand considerations
Review SaaS vendors / solutions Leverage standard application
meta-data Use a Service Oriented Architecture
(SOA) - Loosely coupled data and process integration
Align cost models with business value
Recognize evolving customer expectations
Manage IT Transition Central data center vs distributed
computing Internal apps vs ERP Internal staff vs Outsourcing
Simple
Rapid
Application
Deployment
