Continuing from last week’s post about Old roadmaps being
dangerous this week I’m going to explore some thoughts on how the increase in
subscription based SaaS applications can affect EA roadmaps.
So how do Cloud based SaaS technology affect EA roadmaps?
The power of SaaS lies in the fact that the purchasing company
doesn’t own a soon-to-be outdated technology. The cost of the applications is
spread usually across a number of years and as the software vendor updates and upgrades
the application, these features are made available to the purchaser. This means
for outsourced services like purchasing or HR software the EA team needs to keep
aware of the SaaS vendor’s roadmap and identify if it affects their own. Also,
at the expiration of the contract the EA team should be evaluating that SaaS
and making a recommendation on how it fits into the current and future company
EA.
This breaks the old model of: Emerging à Production à Legacy à Exit.
A good SaaS company stays relevant through the adoption and
deployment of new technology so the application never reaches the legacy stage
without a major market shift. Yes there will always be new trends but companies
will always need to manage the HR process and purchase items. The question is
how can the SaaS enable and automate those processes so company employees can
spend their time doing what the organization hired them to do. In addition, a
company only needs to administer SaaS and not maintain the code freeing up IT
and EA resources to focus on the company mission.
I see the new model as: Implement à Deploy à Adopt à optimize (and don’t
stop)
Unless there is a strong reason to implement a new solution,
companies who leverage outsources SaaS applications can stay in the optimize phase.
To me, there is a strong value proposition in in the reduced costs of optimizing
versus implementing a similar solution every few years. Your get new tools
right away, the key is being agile enough to pick them up and use them.
Interesting post. I like how you explain SaaS applications and how they help keep things updated. You said that "unless there is a strong reason to implement a solution. In you opinion, what would a strong enough reason be?
ReplyDeleteGreat question and in my opinion there could be any number of reasons to implement differernt solutions. A few that come to mind are: Being aquired by another company, a major shift or change in technology, new government imposed regulations, a change in funding, or possibly growth or downsizing of the firm that could effect economies of scale.
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