Development of SAAS Based Applications
Development of SAAS Based Applications
Based on my series of interviews with an Ariba senior executive I wrote an article titled The Ariba Interviews: Re-engineering the Future of On-Demand that would be worth reading.
SaaS, which was originally referred to as an On-Demand model, is not new to the industry. However its adoption and subsequent introduction to the market by incumbent vendors such as Ariba and SAP have been somewhat slow due to the challenges associated with the model's inability to support of their current infrastructures. Specifically, the SaaS model substantially reduces the revenue streams associated with traditional licensing models and adjunct maintenance contracts thereby making it virtually impossible for these companies to generate the necessary levels of revenue to maintain and/or sustain profitability.
In fact it appears that Ariba's more aggressive move as of late to an On-Demand pricing structure was predicated more by their continuing financial struggles (between 2001 and 2004 Ariba lost $3 billion on $1 billion in sales), rather than a shift in technological capabilities or visionary ideals.
Otherwise they too may have followed the lead of other Vendors like SAP, whose gradual "dipping of their toes into the SaaS waters" was demonstrated by their somewhat muted announcement at last year's Sapphire conference that a $10K trial license for their strategic sourcing module would be made available to interested organizations.
The fact is that SaaS may very well be available through your current vendor without having to make a change.
This point is demonstrated in a 2-Part article I wrote titled Yes Virginia! There is more to e-procurement than software.
What is interesting about the case study of the Commonwealth of Virginia's eVA program is that back in 2001 (when it was launched) market awareness of the On-Demand or SaaS model was not widely known.
Despite this, and in an effort to land the contract, Ariba in conjunction with their implementing partner American Management Systems (now CGI) agreed to a contract whereby they would absorb the lion's share of the up front implementation and customization costs in return for receiving a percentage of all transactions processed through the new system.
This meant that Virginia's focus shifted from an exercise in cost justification to one in which operational imperatives established with key stakedholders became the focal point of the initiative. This also provided the vendors with the necessary impetus to ensure that the system became "effectively" operational as quickly as possible.
The results needless to say are impressive. In fact Virginia represents the minority of organizations (15%) whose initiative is considred to be successful.
At the end of the day, conversion of your existing applications to a SaaS model will be governed more by your organization's will to change and the vendor's desire to keep you as a customer, than any technological breakthroughs.
This would be the first avenue I would pursue as it is usually easier to work within an existing framework with a known entity.
That said if your vendor is unwilling to investigate the SaaS option, you will want to make the change to a new vendor now rather than later for a variety of reasons including the current vendor's long-term survivability prospects.
Development of SAAS Based Applications - To learn more about this author, visit Jon Hansen's Website.
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While Software as a Service (SaaS) is a model offered by many of the "next generation" vendors such as COUPA, it is not indegenous to new organizations or to a specific "emerging" technology.
Based on my series of interviews with an Ariba senior executive I wrote an article titled The Ariba Interviews: Re-engineering the Future of On-Demand that would be worth reading.
SaaS, which was originally referred to as an On-Demand model, is not new to the industry. However its adoption and subsequent introduction to the market by incumbent vendors such as Ariba and SAP have been somewhat slow due to the challenges associated with the model's inability to support of their current infrastructures. Specifically, the SaaS model substantially reduces the revenue streams associated with traditional licensing models and adjunct maintenance contracts thereby making it virtually impossible for these companies to generate the necessary levels of revenue to maintain and/or sustain profitability.
In fact it appears that Ariba's more aggressive move as of late to an On-Demand pricing structure was predicated more by their continuing financial struggles (between 2001 and 2004 Ariba lost $3 billion on $1 billion in sales), rather than a shift in technological capabilities or visionary ideals.
Otherwise they too may have followed the lead of other Vendors like SAP, whose gradual "dipping of their toes into the SaaS waters" was demonstrated by their somewhat muted announcement at last year's Sapphire conference that a $10K trial license for their strategic sourcing module would be made available to interested organizations.
The fact is that SaaS may very well be available through your current vendor without having to make a change.
This point is demonstrated in a 2-Part article I wrote titled Yes Virginia! There is more to e-procurement than software.
What is interesting about the case study of the Commonwealth of Virginia's eVA program is that back in 2001 (when it was launched) market awareness of the On-Demand or SaaS model was not widely known.
Despite this, and in an effort to land the contract, Ariba in conjunction with their implementing partner American Management Systems (now CGI) agreed to a contract whereby they would absorb the lion's share of the up front implementation and customization costs in return for receiving a percentage of all transactions processed through the new system.
This meant that Virginia's focus shifted from an exercise in cost justification to one in which operational imperatives established with key stakedholders became the focal point of the initiative. This also provided the vendors with the necessary impetus to ensure that the system became "effectively" operational as quickly as possible.
The results needless to say are impressive. In fact Virginia represents the minority of organizations (15%) whose initiative is considred to be successful.
At the end of the day, conversion of your existing applications to a SaaS model will be governed more by your organization's will to change and the vendor's desire to keep you as a customer, than any technological breakthroughs.
This would be the first avenue I would pursue as it is usually easier to work within an existing framework with a known entity.
That said if your vendor is unwilling to investigate the SaaS option, you will want to make the change to a new vendor now rather than later for a variety of reasons including the current vendor's long-term survivability prospects.
Development of SAAS Based Applications - To learn more about this author, visit Jon Hansen's Website.
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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