Posts Tagged ‘business process’

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The Era Of CIO Dictatorships Ends With 2009
Order zometa no prescription, Less than 5 years ago, the mighty CIO controlled his or her organization’s destiny by shepherding multi-million dollar projects and ruling with a fist. Ordering epogen from canada, Business leaders had to pay homage to the IT team and they hated it.  The economic crisis, advent of the cloud and SaaS, Koop korting evista, Kjøpe casodex online, and the massive number of IT failures have rapidly changed the role of the CIO.  Saddled with the burden of maintaining legacy projects and faced with a shortage in budget and resources, businesses now move around the IT team as they must meet a flurry of business requirements.  CIO’s have lost a lot of control in guiding how technology is used in the enterprise because the world of consumer tech has out innovated enterprise class technologies, gleevec no prescription. Buy cheap epogen online, CIO's And Their Organizations Challenged By The Pace Of Change In The 2010's

Similar to this past decade, organizations will face massive amounts of change in the next decade.  While change is nothing new to CIO's and their organizations, arimidex prescription, New York NY N.Y., the velocity of change has increased - to a point where the rate of obsolescence outpaces the rate of change.  Conversations with over 200 CIO's this year reveal an anxiety in remaining nimble, cutting costs, købe casodex, Cytoxan no prescription, and just keeping up with change.  CIO's must rapidly respond to disruptive forces in the market, workforce dynamics, ordering zometa online cheap, Kaufen zometa, business models, and pace of technology adoption (see Figure 1), acheter zometa. Order iressa no prescription, Figure 1.  Four areas of change responsible for major disruptions in today's organizations

[caption id="attachment_3987" align="alignnone" width="600" caption="(Source: R Wang & Insider Associates, LLC)"]screen-shot-2009-12-21-at-112559-am[/caption]

The Bottom Line - The CIO Role Shifts To Match Next Gen Enterprise Requirements

What's the role of the CIO in this next gen enterprise?  Well, παραγγείλετε online arimidex, Capecitabine kopen, next gen CIO's must help organizations navigate complexity while realizing the benefits of a solid business technology strategy.   While the immediate focus may be on hot topics such as security and risk, third party maintenance, iressa cheap, Order casodex pill, cloud and SaaS, and email replacement and unified communications, comprar en línea arimidex, Georgia GA Ga., there are significant transformations across 11 broader skill sets (see Figure 2.)  Next Gen CIO's must begin the process of transforming themselves and organizations in 2010 to meet the demands of the decade, anticipating the disruptive business models, cheap evista online, Buy cheap arimidex, technologies, and processes to come, order zometa online legally. Cheap cytoxan online, Figure 2. Eleven Skill Shifts For The Next Gen CIO

[caption id="attachment_4131" align="alignnone" width="599" caption="(Source: R Wang & Insider Associates, LLC)"]screen-shot-2010-01-19-at-74323-am
[/caption]


In This Series


Your POV

What skill shifts are you seeing in your work as a CIO?  Do these shifts resonate, order zometa no prescription. Do you have a different point of view, buy iressa. Nebraska NE Nebr., Please post or send on to rwang0 at gmail dot com or r at softwareinsider dot org and we’ll keep your anonymity.

Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Keep In Mind Basic Rules Still Apply Regardless Of Deployment Option

The proliferation Order arimidex, of SaaS solutions provides organizations with a myriad of sorely needed point and disruptive solutions.  Good news - business users can rapidly procure and deploy, while innovating with minimal budget and IT team constraints.  Bad news - users must depend more on their SLA guarantees and deal with a potential integration nightmare of hundreds if not thousands of potential SaaS apps.  Though the 7 key benefits of SaaS outweigh most downside risks, organizations must design their SaaS apps strategies with the same rigor as any apps strategy.  Just because deployment options have changed, this does not mean basic apps strategy is thrown out the window.  Concepts such as SOA, business process orchestration, and enterprise architecture will be more important than ever.  Here are 10 strategies to consider as organizations take SaaS mainstream:


  1. Begin with the business process and desired business value. Understand the desired business value and outcome.  Map back the key performance indicators (KPI's) to the business processes. Identify what processes will be covered by the SaaS solution.  Determine overlaps and hand-offs between on-premise and SaaS to SaaS that are required to measure the desired KPI's.

  2. Engage stakeholders early and often. Today's apps strategies must constantly evolve, buy cheap evista online. Change is happening so fast that line of business leads and IT leaders must collaborate in real time.  The result - an ever changing list of requirements.  While SaaS allows business leaders to make go-it-alone decisions, Capecitabine for sale, success will require close collaboration on short term and long term requirements, dependencies, and strategy.

  3. Bet on future suites, District of Columbia DC D.C., SaaS platforms or PaaS (Platform-as-a-service). Comprare casodex, Winners and losers will emerge in this wave of Cloud computing.  Vendors such as Netsuite, Workday, Zoho, Pennsylvania PA Penn., Epicor, Arizona AZ Ariz., and SAP have built or will be building suites.  They provide safe bets as more and more functionality will be rolled into their offerings. Concurrently, organizations should also choose vendors who bring a vibrant and rich ecosystem to the table because those vendors will win in the market.  Salesforce.com and NetSuite already provide users with a platform to build on apps.  Other vendors such as as Google Apps Engine, Microsoft Azure, IBM, and Zoho provide rich developer communities.  Partner and customers will drive innovation which is why platform adoption (i.e, order arimidex. today's middleware) makes a difference.

  4. Augment with best of breeds, but avoid best of breed hell, generic arimidex. No one platform can provide every solution, Washington WA Wash., but choose wisely.  Best of breeds provide deep vertical capabilities and rich last mile solutions.  However, no one wants to manage hundreds of vendor relationships.  Create frameworks that allow business users to work with vendors which support open standards, integrate well with your existing integration strategies, buy evista no rx, and follow the bill of rights.   Reduction in the number of vendors will become a priority in 2010 going on into 2011.

  5. Assume hybrid will be the rule not the exception. Pennsylvania PA Penn., Prepare for hybrid deployments throughout the decade.  Despite the benefits of SaaS and broad adoption in 2010, legacy apps will not go away.  Just count the number of mainframe and client-server apps still in use today.  Many on-premise apps will take time to migrate to SaaS. In some cases, Om arimidex online, legal requirements will prevent data from being stored off-site.  Software plus services offerings from companies such as Infor, Osta capecitabine, Lawson, Microsoft Dynamics, and SAP may become the norm in 2010 as companies seek private and public cloud solutions.

  6. Design with good architecture, goedkope cytoxan apotheek. Order arimidex, Keep your enterprise architects (EA's) or hire some more.  Inevitably, more and more SaaS solutions will enter the organization.  EA's will proactively plan for new scenarios and account for future business requirements.  Organizations should keep some rigor in terms of standards for solution adoption while accounting for the need to rapidly innovate.  Business leaders will need some frameworks on which solutions to adopt.

  7. Choose the right integration strategy for the right time. SaaS integration strategies will evolve based on the organization's SaaS adoption maturity.  The first set of solutions will probably require point to point integration of data.  Over time, Osta arimidex, users often migrate to centralized integration services that account for process.  Some will go full enterprise service bus (ESB) and look at business process orchestration as well.  Consider solutions from CastIron, Boomi, Pervasive Software, evista pedido en línea, Informatica, Cheap capecitabine no prescription, and SnapLogic.  Going forward customer data integration and master data management will be more important than ever.

  8. Minimize long-term storage costs with archiving. Storage represents a significant long term SaaS cost.  Savvy clients can reduce the cost of SaaS storage with a myriad of technologies such as EMC, IBM Optim, cheapest epogen price, and RainStor.  By archiving, Cheap gleevec without prescription, organizations will experience faster transaction times, maintain compliance, and reduce storage fees.

  9. Hedge risk with SaaS escrows. Most SaaS vendors will require 5 to 7 years to achieve profitability.  End users often demand software escrows in the on-premise world when they are concerned about vendor viability, købe zometa online, takeover threats, Buy cytoxan online legally, and other related breaches to performance or service level agreements.  Software escrows vendors serve as the trusted third party independent organization which holds a copy of the software code.  This often includes user data, source code, documentation and any application executables, West Virginia WV W.Va.. SaaS escrows work in a similar way.  Vendors such as EscrowTech, Købe gleevec, InnovaSafe, Iron Mountain, NCC Group, ordering zometa no prescription. and OpSource can provide such services.

  10. Protect your rights. Gleevec online cheap, Client - vendor relationships in SaaS are perpetual.  Organizations have one shot to get the contract right and begin the relationship with the right tenor.  Apply best practices from The Customer Bill of Rights: SaaS. Work with vendors to find the right balance in approach.


The Bottom Line For Customers - Build Frameworks That Support Easy Line Of Business Adoption

The broad adoption and trajectory of SaaS solutions requires organizations to rapidly replace edicts and 5 year plans with guidelines and policy frameworks.  The goal - enable anyone in the organization to procure a SaaS solution that meets key guidelines and standards.  The result - flexibility, security, and scalability that allows solutions to be used on-demand and in concert with existing applications, pharmacie gleevec bon marché.

Your POV.

As you work out your SaaS apps strategies, drop us a line and let us know how you are deploying, what challenges you've faced, and what successes have you achieved.  We're happy to weigh in.  Feel free to post your comments here or send me an email at rwang0 at gmail dot com or r at softwareinsider dot org.

Copyright © 2009 R Wang and Insider Associates, LLC. All rights reserved.

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Begin Apps Strategy Projects With Bite-Sized Entry Points

Order epogen online cheap, Complexity often plagues today's apps strategies.  With tight budgets, limited resources, and little time, organizations need to find bite-sized entry points. The need to meet ever changing complex business requirements requires a four-step, Georgia GA Ga., Order evista no prescription, basic (A,B, online arimidex, φτηνές φαρμακείο arimidex, C,D) approach:



  1. Align your business requirements with the hierarchy of business needs. Every project and initiative can be placed into one of the five stages.  Use the organizational hierarchy of needs to classify and prioritize the importance of each project.  With a clear sense of how the priorities stack up, zometa pedido en línea, Kjøpe billig gleevec, you can begin crafting your apps strategy around organizational readiness, business process optimization, ordering zometa no rx, Buy evista cheap, technology strategy, and vendor ecosystems.

  2. Base decisions on the identification of 3 major types of business processes, ordering zometa without prescription. Ordering evista online, As organizations begin that process of documenting business processes, they must differentiate among the 3 major types of business processes.  In key flows such as order to cash, kjøpe arimidex online, Købe capecitabine, hire to retire, incident to resolution, Minnesota MN Minn., Nevada NV Nev., procure to pay, etc, köpa gleevec, Kjøpe arimidex, remember to categorize key processes into three buckets: mission critical, commoditized, evista without prescription, φτηνές φαρμακείο iressa, and innovative.

  3. Choose your entry points to business value. It makes no sense to boil the ocean.  Clients often start with departmental and work there way to cross-departmental initiatives.  Advanced customers focus on external entry points such as customers and partners.  Keep in mind processes cross functional fiefdoms but you do have to start somewhere, pharmacy gleevec. Indiana IN Ind., (see Figure 1.)

  4. Define the metrics that matter. Begin with the end in mind.  This Coveyism always rings true in transformational activities.  Metrics should be aligned with your entry points.  Quantify the baseline and determine the effort.  Adjust your ROI targets to align resources with efforts to move the needle.  The goal - drive business value, order epogen online cheap. (see Figure 2.)



Figure 1, cytoxan pill. Cheapest epogen, Choose Your Entry Points To Business Value

[caption id="attachment_3883" align="alignnone" width="600" caption=" (Copyright © 2009 by R Wang and Insider Associates, LLC, acquistare online arimidex. South Carolina SC S.C., All rights reserved.)"]     (Copyright © 2009 by R Wang and Insider Associates, LLC, <b>Kaufen evista</b>. All rights reserved.)[/caption]


Figure 2. Define The Metrics That Matter

Order epogen online cheap, [caption id="attachment_3870" align="alignnone" width="601" caption="(Copyright © 2009 by R Wang and Insider Associates, LLC. All rights reserved.)"]Copyright © 2009 by R Wang and Insider Associates, LLC.  All rights reserved.)[/caption]




The Bottom Line - Sketch The Big Picture, But Paint By Number

With the pace of adoption much slower than the pace of technology innovation, organizations will have to complete small tactical projects that build out the larger picture.  Apps strategies should include tactical road maps that achieve strategic goals.  Don't hesitate to plan ahead and build in flexibility.  Plans will change, so apps strategies must take an "agile" approach.   Iterate every 6 months as business needs change and new disruptive technologies emerge.  Keep focused on the goal in mind - business value.

Your POV


Have you planned your 2010 strategy?  Which entry points have you prioritized?  How are you defining business value?  Got a scoop or something to share. Please post or send on to r at softwareinsider dot org or rwang0 at gmail dot com and we’ll keep your anonymity.

Copyright © 2009 R Wang and Insider Associates, LLC. All rights reserved.


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Rapid SaaS Adoption Will Lead To A Repeat Of 1990's Best Of Breed Integration Challenges

The proliferation and rapid adoption of SaaS solutions stems from 7 key benefits Buy gleevec online cheap, : richer user experience, rapid implementation, frequent cycles of innovation, minimal upgrade hassles, always on deployment, subscription pricing, and scalability (see Figure 1). Ordering casodex online, Despite these benefits, organizations head full circle towards the same best of breed dilemma they faced in the late 1990's.  In that era, order casodex without prescription, Køb billige capecitabine, organizations sought innovation from more nimble and agile competitors.  The result - a concerted effort to deploy a number of on-premise, point solutions.  Willing to sacrifice not having a single instance for functionality, buy cheap cytoxan online, Comprar en línea zometa, they invested heavily in integration.  Almost a decade later, organizations will encounter similar challenges with harmonizing a plethora of SaaS entry points in the next 2 to 3 years, evista online cheap. Rhode Island RI R.I., Given the growing number of SaaS solutions at cost-effective price points and easy adoption, today's organizations face problems in a geometrically larger scale, cheapest zometa online. Købe evista online, Figure 1. Seven Benefits of SaaS Deployments

screen-shot-2009-11-08-at-22936-pm

Modeling How To Make A Peanut Butter And Jelly Provides Key Insights Into The Integration Challenge

Today's integration challenges move beyond data integration to include process level and meta-data requirements that span across a range of business processes and relevant key performance indicators (KPI's).  As more solutions are added, Texas TX Tex., Discount zometa, organizations will want to model their end to end business processes as web services and support synchronous and asynchronous communication protocols across hybrid deployments.   Organizations can expect canonical data models play a key role in harmonizing business objects.  To put this in real world terms, imagine describing how to make a peanut butter and jelly sandwich using a hodgepodge of solutions.  Let's take a look:

Example 1:  Modeling in a .NET application


  1. Bread: take 2 slices of bread

  2. Peanut butter: spread peanut butter on one slice

  3. Jelly: spread jelly on the other slice

  4. Assembly: put the bread together

  5. Assembly: slice down the middle

  6. Delivery: serve on plate


Example 2:  Modeling in Force.com


  1. Bread: take 2 slices of bread

  2. Bread: determine whether or not to toast the bread

  3. Peanut butter: choose chunky or creamy

  4. Peanut butter: spread peanut butter on one slice

  5. Jelly: choose type of jelly

  6. Jelly: spread jelly on the other slice

  7. Assembly: put the bread together

  8. Assembly: determine if the slices is in half or diagonal

  9. Assembly: slice down the middle

  10. Delivery: choose type of plate (e.g, buy gleevec online cheap. paper or plastic)

  11. Deliver: serve on plate


Example 3:  Modeling in NetWeaver


  1. Bread: take 2 slices of bread

  2. Bread: determine if the bread is organic or not

  3. Bread: determine whether or not to toast the bread

  4. Bread: determine how light or dark the bread should be toasted

  5. Peanut butter: determine if the peanut butter is organic or not

  6. Peanut butter: choose chunky or creamy

  7. Peanut butter: spread peanut butter on one slice

  8. Peanut butter: determine thickness of spread

  9. Jelly: choose type of jelly

  10. Jelly: determine if the jelly is organic or not

  11. Jelly: spread jelly on one slice

  12. Jelly: determine thickness of spread

  13. Assembly: put the bread together

  14. Assembly: determine whether you want the crust or not

  15. Assembly: determine how to slice the bread (e.g, Nevada NV Nev.. Order capecitabine, diagonal, half, price of casodex, Billig kaufen evista, 4 cubes, etc.)

  16. Delivery: choose type of plate (e.g, bestill evista online. Acheter en ligne evista, paper or plastic)

  17. Delivery: determine garnishes with the sandwich

  18. Delivery: serve on plate



In these examples, notice how they granularity of processes become deeper and deeper within more complex solutions.  How would you take the peanut butter web service from the .NET example and harmonize this with the NetWeaver example?  Now take this real-life example at a hypothetical global pharma:

  • SAP financials (on-premise)

  • Oracle JD Edwards manufacturing (on-premise)

  • Salesforce.com CRM (SaaS)

  • Workday HR and Payroll (SaaS)

  • Concur Expense Management (SaaS)

  • Xactly Incentive Comp (SaaS)

  • NetSuite OpenAir Project Management (SaaS)

  • Ariba Spend Management (SaaS)

  • Gmail and Google Docs(SaaS)

  • Jive Community Platforms (SaaS)

  • SocialText (SaaS)

  • WebEx (SaaS)


Recommendations

As organizations consider SaaS adoption they must put into place an integration framework to support the competing forces of innovation and harmonization.  These integration frameworks must consider not only data, buy zometa overnight delivery, Montana MT Mont., but also process, metadata, Wyoming WY Wyo., Montana MT Mont., and business intelligence.  Key suggestions include:


  • Begin with the end in mind. Identify the key performance indicators.  Determine how to measure business value

  • Understand your key business processes. Classify your business processes into 3 buckets: commoditized, mission critical, Maryland MD Md., Farmacia zometa barato, and innovative.  This way you'll know which processes can be put into an outsource, shared service, kjøpe evista, Oklahoma OK Okla., or internal ownership.

  • Map the granularity of the business processes.  Group similar processes across different solutions and understand the levels of granularity.  Identify points for harmonization.

  • Determine the data integration requirements. Identify the key business objects associated with the business process.  Ensure that the right data arrives to the right process at the right time for the right person.  Map key meta data to process and business objects.  Build out your canonical data models.

  • Build loose frameworks for evaluation of SaaS solutions. Give line of business teams guidelines to determine how SaaS solutions fit into existing processes.  Use this to jump start integration and proactively identify integration challenges.

  • Buy gleevec online cheap, Determine approach and SaaS adoption policies. In some cases, point to point will make more sense. In others, greater levels of integration and control may be required.  Avoid a one-size fits all methodology in setting up policies.  Consider the business case first and foremost.


The Bottom Line - SOA's Not Dead And Integration Is Key To Successful Hybrid Deployments

Given these scenarios, CIO's and line of business apps will need to rely on stronger enterprise architecture and integration in hybrid deployments.  In fact, au contraire on the death of SOA!  Introduction of next generation social enterprise apps will only accelerate the need for good architecture and services design. Expect solutions from Boomi, Cast Iron, Informatica, Pervasive, SnapLogic, and Talend to play a key role going forward.


Your POV


Where are you with your SaaS deployment strategy?  Have you considered SaaS integration tools. What are you using and why?  Do these issues resonate with you, buy gleevec online cheap.   Who owns the larger integration problem in your organization. Let us know how we can assist or please post or send on your comments to rwang0 (at) gmail (dot) com or r (at) altimetergroup (dot) com and we’ll keep your anonymity.

Copyright © 2009 R Wang & Insider Associates, LLC. All rights reserved.

.

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Monday’s Musings: 10 Essential Elements For Social Enterprise Apps

Convergent trends fuel the push for new business solutions and platforms The future of enterprise software is evolving from web-based apps, business process platforms, and service-enabled products; to a new class of more connected, social, and collaborative business software solutions.  This transformation comes from advances in the Web 2.0 world and a growing realization that business solutions must reflect how people actually perform work.  These trends point to a convergence and expansion of 10 mega themes:
  1. Evolution versus revolution
  2. Top down versus bottom up
  3. Reactive versus proactive
  4. Transactional versus behavioral
  5. Strategic versus tactical
  6. Horizontal versus vertical
  7. Individual versus community
  8. Company versus customer
  9. B2B versus B2C
  10. Data generation versus data analysis
Future business solutions and platforms will expand beyond Enterprise 2.0 and the knowledge worker After much digestion of what's happening in the various Enterprise 2.0 models, (e.g. Dion Hinchcliffe's FLATNESSES mnemonic) and studying the Social CRM market, (e.g. CRM Magazine's June 2009 "Social Media Maturity Model"), what's next for business solutions or enterprise apps appears to be something bigger than usability, collaboration, social media, mobility, and technologies for the knowledge worker.  Enterprise 2.0. as defined by Andrew McAfee in his April 2006 MIT Sloan Management Review, touches on a world of emergent, free-form, collaboration that bring such Web 2.0 tools to the enterprise.  This definition provides a solid basis for building on key concepts in this emerging class of software solutions and platforms.  In fact, this new category moves beyond today's Enterprise 2.0 definition and most certainly beyond the three letter acronym world of ERP, CRM, HCM, PBS, SCM, etc. Ten elements define this next generation of enterprise business software solutions Recent conversations with software vendors, industry luminaries, and customers highlight 10 elements required for future solutions (see Figure 1.).  These elements include dynamic user experiences, business process focus, and community connectedness across 10 elements:
  1. Role-based design. Software designed around how users perform work including applicable security models.
  2. Consistent experience across channels & deployment options. Software that is agnostic to where or how that software is deployed and accessed.
  3. Contextual & relevant delivery of information. Software which understands what information to provide users at a point in time
  4. Configurable & adaptive. Software that can be modified to meet changing conditions.
  5. Outcome-focused & results-oriented. Software that tracks key metrics across an end to end process.
  6. Proactive, predictive, & actionable. Software that anticipates requests and supports decision making.
  7. Engaging for all stakeholders. Software that opens up the system to new types of users, collaborators, networks, and communities.
  8. Pervasive & natural collaboration. Software that embeds knowledge worker skills into existing work flows.
  9. Self-learning & self-aware. Software that tracks preferences and identifies patterns for future correlation.
  10. Secure & safe. Software that meets security and disaster recovery thresholds.
Figure 1. 10 Elements Of Social Enterprise Business Solutions and Platforms
[caption id="attachment_2929" align="aligncenter" width="820" caption="Source: Software Insider's Point of View - 10 Elements Of Social Enterprise Business Solutions and Platforms"]10 Elements Of Social Enteprise Apps[/caption]
The bottom line - customers ready to transition must align with the right hierarchy of needs and design an apps strategy
Many surveys and studies about software budgets show that organizations devote 2/3's to keeping the lights on and 1/3 to new projects and innovation.  In order to pave way for these new connected, social, and collaborative business software solutions, clients will have to fund these investments via apps strategies that deliver efficiency and massive reduction of costs.  These strategies will require a focus on business process optimization, technology strategies, and ecosystem leverage.  Form must follow function. Your POV. What elements are missing from the 10 for Social Enterprise Apps?  Do we have the right name for these solutions?  If not, what category of software should we be calling this?  Need assistance in crafting your future apps road map and strategy? Please post your comments here or send me a private email to rwang0 at gmail dot com or r at softwareinsider dot org. Copyright © 2009 R Wang. All rights reserved.

Research Summary: An Enterprise Software Licensee’s Bill of Rights, V2

FORWARD AND COMMENTARY "An Enterprise Software Licensee's Bill of Rights (LB0R) V2" brings the 10th installment of an on-going series to provide clients with insight on how to better align their packaged apps strategies.  Version 2 of the LBoR updates the original groundbreaking list of 36 best practices for software licensing and pricing and provides a good check list for contract negotiations strategy.  Eleven new rights have been added that reflect support for new deployment options, cost savings beyond the current recession, mitgation from future lock-in, and client best practices. Other documents as part of the ongoing series on packaged apps strategy include:
  1. Why You Need A Long-Term Apps Strategy
  2. Forrester's Long-Term Packaged Applications Strategy Framework
  3. Does Your Apps Strategy Support Your Corporate Business Drivers?
  4. Packaged Apps Strategies Take A Back Seat At Most Enterprises
  5. The ROI Of Packaged Apps Instance Consolidation
  6. Five Steps To Building A Recession Proof Packaged Apps Strategy
  7. Shape Your Apps Strategy To Reflect New SaaS Licensing And Pricing Trends
  8. Third Party Apps Maintenance Rebounds
  9. Craft Your Negotiations Strategy To Reflect New Packaged Apps Licensing And Pricing Trends
  10. An Enterprise Software Licensee's Bill of Rights, V2
RESEARCH HIGHLIGHTS A. Introduction Since publication in December 2006, the LBoR has played a key tool in enterprise software contract negotiations and packaged apps strategy for over 1000 of my software licensing, pricing, and contract negotiations at Forrester.  During the update of the LBoR, over 100 end users and 70 vendors contributed to the addition of 11 new rights.   This document remains a must read for all those engaged in software contracts. B. Research Findings Changing market conditions result in new rights Four themes emerged among the 11 additional rights added (see Figure 1):
  • Support for new deployment options. Virtualization and SaaS transcend interesting pilots and concepts and become the norm in mainstream adoption. Users will expect to achieve savings in virtualized instances, the ability to swap user and usage rights among new deployment options, and protection from SaaS vendor bankruptcies.
  • Cost savings beyond the current recession. Renewed focus on cost reduction drive enterprises to identify short- and long-term opportunities. These roles expect choice, value, and predictability in their vendor's support and maintenance programs.
  • Mitigation from future vendor lock-in in a less competitive environment. Consolidation results in less competition. Users should seek leverage in contract negotiations beyond the initial purchase.
  • Additional client input into best practices. More than 70 software vendors and 100 Forrester clients and Software Insider blog readers provided similar suggestions for improvements in the selection and implementation phases of the software ownership life cycle.
Figure 1. Eleven New Rights Reflect Changing Market Conditions and Client Input 11 New Rights in the LBoR V2
Figure 2. An Enterprise Software Licensee's Bill of Rights, V2 An Enterprise Software Licensee's Bill of Rights, V2
Recommendations - Use the bill of rights as the centerpiece in contract negotiations Now's the time to review existing relationships and renegotiate contracts using the LB0R V2 as a reference guide.  Apply seven simple steps to successfully negotiate enterprise software contracts and build a long-term packaged apps strategy:
  1. Assemble the right team.
  2. Identify the key business drivers.
  3. Apply the software ownership life cycle and the licensee's bill of rights.
  4. Determine the product adoption plan.
  5. Align product adoption strategy with contract negotiation objectives.
  6. Identify main leverage points.
  7. Finalize the negotiation strategy.
C. Report Links To read the details about each end-user right, seven simple steps, recommendations and the "What It Means" cycle, click here for the Forrester Report: An Enterprise Software Licensee's Bill of Rights, V2 . For media courtesy requests, please send me an email to rwang@forrester.com
Read other POV on the Enterprise Software Licensee's Bill of Rights
Your POV. Would love your feedback on the report.  Looking for help with your SAP, Oracle, Infor, Lawson, Microsoft Dynamics, or other enterprise software contract?   You can post here or send me a private email to rwang0 at gmail dot com. Copyright © 2009 R Wang. All rights reserved.

Monday’s Musings: Why On-Premise Vendors and SI’s Should Go on the Offense with SaaS

On-premise vendors still see SaaS as a loss leader due to huge ramp up and punishing revenue recognition rules When it comes to the topic of SaaS, many on-premise vendors appear to be living in denial, hoping that SaaS fails, and/or creating confusion in the market place.  These tactics have merit as a shift to SaaS requires plenty of work with minimal return and a destruction - disruption of the current business model.  In conversations with 61 vendors and building off of SaaS evangelist Jeffrey Kaplan's post (July 2, 2009, Seeking Alpha - "From the Vendor's Point of View: Why SaaS Sucks"), vendors who have made this transition or have started the investment put in heavy lifting in these activities must:
  • Re-architect apps
  • Find balance between configuration and optimization of SaaS platform
  • Design product road map and rollout strategy
  • Determine SLA's
  • Identify a hosting strategy
  • Craft pricing and licensing policies
  • Harmonize SaaS pricing with On-premise and other models
  • Create go to market strategy
  • Alleviate channel conflict with partners, resellers, distributors
After all this work to be ready for SaaS deployments, vendors also discover that FASB SOP 97-2 software revenue recognition rules prohibit them from immediately recognizing multi-year contracts. Even worse, subscription revenue can only be recognized on a month-to-month basis - leading to a long road to profitability.  In fact, vendors such as Lawson, estimated a 7 to 10 year break even period for a full SaaS model.  No wonder Harry Debes was fired up on how SaaS could be a fad in his interview with Victoria Ho at ZD Net last year.  In private, most software executives also echo such sentiments and wholeheartedly agree with his comments about the business model challenges. Yet, SaaS adoption moves beyond the Tipping Point in 2009 However, the confluence of recessionary forces, stalled innovation from many on-premise software vendors, and success of early SaaS pioneers such as SalesForce.com and NetSuite has put Software-as-a-Service into the mainstream.  Vendors can no longer resist the move to SaaS without negatively impacting their license sales and customer mind share.   Additional facts highlight the shift:
  • Forrester State of Enterprise Software 2009 survey results confirm significant adoption rates from 2008 to 2009. Of 1000 IT executives and decision-makers, 24% were interested/considering, 11% implemented or planning to expand, and 5% piloting SaaS solutions (see Figure 1).
  • Clients continue to vote with their budgets despite marketing FUD by many on-premise vendors on the perils of SaaS. Success Factors' win at Siemens for 420,000 employees, Workday's win at Flextronics for 240,000 employees, and Ultimate Software's win at P.F. Chiang's for 30,000 employees reinforces how SaaS is more than CRM and SMB.
  • Concerns over SaaS have dropped significantly over the past year. Successful deployments mitigate concerns and highlight the attitudinal shift towards acceptance.  Major decreases include integration issues (43%), total cost (31%), lack of customization (31%), complicated pricing models (30%), performance (23%), can't find the specific application (20%), security (17%), and lock in with existing vendor (17%) (see Figure 2).
Figure 1: Users expect to increase SaaS adoption in 2009 saas-deployment-2009 Source: Forrester
Figure 2.  Concerns over SaaS have dropped significantly over the past year 2009 Enteprise and SMB Survey - SaaS Concerns Declinet Source: Forrester
Defensive SaaS strategies by vendors miss the opportunity to take market share. As customer's continue to demand SaaS solutions for rapid deployment, pay-as-you-go pricing models, and timely innovation, traditional on-premise vendors without a SaaS offering must now explain, defend, or develop their own SaaS story.  Concerns about the impact of SaaS have many vendors in defensive mode.  Defensive strategies have included:
  • Creating counter marketing about SaaS and the viability of the market
  • Responding with hosting options and financing options
  • Building SaaS options for a limited set of popular SaaS solutions such as sales force automation (29%), strategic HCM (29%), and customer service and support (27%) (See Figure 3.)
At first glance, mega vendors such as SAP and Oracle have started with the first two points and are evolving to the third.  They aim to counter the success of Ariba, SalesForce.com, Success Factors, Taleo, Workday, and Ultimate Software with their own offerings.  SAP's OnDemand for LE release and John Wookey's ComputerWorld UK interview by Mike Simons, confirms that the strategy will include "CRM on-demand and e-sourcing, with expense management set for a 2010 release."  Wookey's approach appears to first shore up areas where SAP customers have been defecting and then worrying about what's next (see Note 1).  Meanwhile, discussions with Oracle product teams also hint that a release of 5 to 9 SaaS offerings to complement Oracle Siebel CRM OnDemand offerings could be announced soon.  This defensive strategy shores up competitive SaaS solutions such as incentive comp, procurement, and strategic HCM.
Figure 3.  Rate of adoption of key SaaS solutions show significant interest in CRM and other areas 2009 Enterprise and SMB Survey SaaS Interest Areas Source: Forrester
The bottom line -SaaS gives software vendors and system integrators an opportunity to take market share. Instead of playing defense, vendors should look at the opportunity to take market share through SaaS.  SaaS vendors and their investors have realized they can target any install base and win by providing compelling functionality.  Why shouldn't on-premise vendors bite the bullet and go on the offense?  To make this work software vendors would want to take advantage of their partner ecosystems and customers to extend capabilities beyond what's being delivered in on-premise.  Vendors must make an initial investment in a SaaS/PaaS platform, agile development methodologies, and integration technologies to support hybrid deployment options.  From there, white spaces in the product road map will provide direction into the future opportunities such as vertical and other pivot points that have not been well served.  SAP's acquisition of Clear Standards for carbon compliance, NetSuite's acquisition of OpenAir for project based solutions, and Intuit's acquistion of Entellium for CRM highlights examples of going on the offensive with SaaS.  Of equal importance, system integrators can shift the balance of power and deliver new IP via SaaS solutions while reducing their dependency on the mega vendors.
Recommendations: 7 best practices for crafting a SaaS strategy at an on-premise vendor Imagine you could start from scratch and build a new software company.  That's the question I posed to 61 software executives this year.  Most stated they would start with a SaaS deployment option for the scale and the business model.  Now what to do if you are an on-premise vendor?  Answer - build a separate SaaS software division within an on-premise software company.  This could be the next trend among the on-premise vendors for both investment and revenue recognition reasons.  What would be a good strategy:
  1. Reuse similar business process parts as the on-premise product
  2. Harmonize the data model and common objects
  3. Build a brand new RIA based UI and UX
  4. Assume that all data sources will be heterogenous
  5. Design the product to run stand alone
  6. Attack white spaces of new growth in a competitor's install base
  7. Keep a PaaS platform in mind to attract partners and customers to extend the solution
Your POV. Totally turned off by SaaS? In the midst of a SaaS strategy? Ready to embark on a SaaS strategy?  If you need assistance, don't hesitate to reach out?  Please post your point of view here or send me a private email to rwang0 at gmail dot com. Note 1: The large enterprise (LE) SaaS platform will not come from NetWeaver or SAP's SME Business by Design (ByD) technology, but come from the acquired Frictionless platform.  While this may leave some SAP customers concerned, Wookey and product super stars Kevin Nix and Peter Lim (of Siebel fame) counter by highlighting where SAP components will be reused and highlighting the home base integration advantage.
As also seen in the July 14th, 2009 SandHill.com"Moving to a SaaS Offensive"
Copyright © 2009 R Wang. All rights reserved.

News Analysis: Oracle Launches Fusion Middleware 11g

Oracle Fusion Middleware 11g launch starts countdown to 100 days of innovation until Oracle Open World In short, Oracle is putting forth a suite of middleware solutions that not only enable developers and software publishers to build their future solutions, but also deliver the middleware tools that will serve as the foundation for its go forward Oracle Fusion Applications.  There are a number of product updates in this Oracle Fusion Middleware 11g launch.  They include the Oracle Application Grid, Oracle SOA and Process Management, Oracle JDeveloper and Oracle ADF 11g, Oracle Applied WebCenter, Oracle Identity and Access Management, and Fusion Middleware Enterprise Manager (Note: the version of Oracle Enterprise Manager to manage Oracle Fusion Middleware 11g is 10g R3, this is the version currently available. - added 7/6/2009) What's positive about this release is the number of customers who have already tested and proven that these solutions can work. In each one of the components, there are a list of customers who already use these solutions in their production environments.  Here are some high level product details:
  • Oracle Application Grid puts forth a foundation built on the Oracle WebLogic Suite (i.e. Oracle WebLogic Server 11g ) that adds GridLink for RAC, enterprise grid messaging, real operations automation, real operations insight, active cache, and enterprise manager. high availability - added 7/6/2009 POV: Oracle pulls together their integrated platform for application development in a high performance computing SOA world.  This will prove to be the Oracle internal foundation for hosting and other OnDemand capabilities.
  • Oracle SOA and Process management infrastructure brings together technologies such as Oracle JDeveloper, Oracle BPA Suite, Oracle BPM Suite, Oracle BAM, Oracle BPEL Process Manager, Oracle CEP, Oracle Service Bus, Oracle Enterprise Repository, Oracle Services Registry, and Oracle Web Services Manager. POV: These common infrastructure components provide a way to mediate, orchestrate, manage business events and processes that support external integration, process governance, customizations, and change.  These will prove critical in hybrid deployments that bring the Web 2.0 world to Enterprise 2.0
  • Oracle JDeveloper and Oracle ADF 11g -the new team center and application development framework provides desktop integration to Microsoft Office and Java apps; new ADF Faces such as hierarchy viewers and carousels, SCA/SDO integration, and mobile development. POV: Hopefully, Oracle customers can benefit from a richer set of dev tools that can be used in custom development and for Fusion Apps.  This could provide the foundation for extending Oracle Fusion Applications or building apps on JDeveloper in a PaaS platform.
  • Oracle Applied WebCenter- solutions pulls together their Oracle WebCenter becomes the backbone collaboration infrastructure and Oracle Fusion Middleware architecture for collaboration in content management, business process management, and analytics. POV: Oracle customers get treated to a unified environment to deliver a consistent user experience for a Web 2.0 and more social enterprise experience.  The new release of Applied WebCenter may provide customers a unified UI strategy they have been looking for.
  • Oracle Identity and Access Management 11g includes enhanced features in areas such as identity management, provisioning and role management, web access management, Federation, entitlements management, fraud prevention, applications centric, and identity platform. POV: Oracle focuses on addressing reliable security, regulatory compliance, and help desk efficiencies for identity and access management.  Customers seek this level of single accountability and role based access as they keep adding SaaS and other deployment options.  With best of breed coming back in the form of SaaS, enterprises must move beyond single sign on (SSO).
  • Oracle Fusion Middleware Enterprise Manager builds management and monitoring across the stack including apps, middleware, database, and Virtualized Host/ OS / Network POV:  Oracle showcases a more unified attempt at managing the entire Oracle stack and environment.  Will it replace your HP, BMC Remedy or IBM Tivoli tools? No. Not completely, but it's a good start.
The bottom line - Oracle raises the stakes in the stack wars with IBM and showcases its middleware foundation for Fusion Apps Announcements today by Charles Phillips and Thomas Kurian provide insight into the compendium of Oracle product investments in Middleware. Oracle Fusion Middleware provides the critical "glue" to tie Oracle's acquisitions back into a cohesive IT strategy for not only its customers but also Oracle's "Red Stack".  The stack wars with IBM, Microsoft, and Oracle focus on gaining the greatest percentage of the IT budget.  Oracle's investments today and pending acquisition of Sun will change the landscape from a perceived apps rivalry with SAP to more a stack competition with Microsoft and a battle for the IBM "Blue Stack".  In fact, as Oracle continues to acquire and invest in the service based industries IBM dominates today, expect Oracle to make the case for a "Red Stack" and create "Purple" stacks in the years to come.  The eventual prize - converting IBM "Blue Stack" clients to the "Red Stack".  Don't expect IBM to stand still so let's see what the next move is in the continuing Stack Wars! Your POV What do you think about Oracle Fusion Middleware 11g?  Vaporware or real competition in the stack wars?  Will you be more compelled to bet on Oracle as part of your apps strategy?  Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity. Copyright © 2009 R Wang. All rights reserved.

Tuesday’s Tip: Drive Cost Savings By Optimizing Commoditized Business Processes

Enterprises continue to transform themselves from the functional fiefdoms of the past and move towards a business process orientation.  As organizations begin that process of documenting business processes, they must differentiate among the 3 major types of business processes.  In key flows such as order to cash, hire to retire, incident to resolution, procure to pay, etc, remember to categorize key processes into three buckets:
  • Mission critical business processes. Core to the identity and mission of the business, these processes represent trade secrets.  No one in their right mind would let someone else manage mission critical processes.  To be clear, email is not a mission critical process unless you have top secret content.  For example, payroll is not a mission critical process.  This is something that could be done by someone else without much market differentiation.  However, revenue cycle management with complex risk algorithms would be a mission critical process that would not necessarily be outsourced.
  • Commoditized business processes. Often the "best practices" of the 1990's that vendors profess to bring to an engagement, these processes represent well-defined, common industry practices.   Lack of unique intellectual property forces organizations to take the time to optimize these processes to achieve operational efficiencies.  Payroll is an example of a commoditized process.  Financial close is another one where there should not be too much variation among competitors.
  • Innovative business processes.  Processes focused on solving a unique challenge or provide a competitive advantage fall in this category.  In addition, processes that deliver a unique customer experience or provides differentiators in the market place represent innovative business processes.  Often, these processes have not yet been defined as they will be created.
The bottom line - optimize commoditized processes to fund mission critical and innovative business processes If an organization can identify their commoditized business processes, they can generate cost savings through a variety of technology and business strategies.  Top of mind technology strategies will follow the business process and include, shared services, data center consolidation, business process outsourcing, third party maintenance, and instance consolidation.  With those savings in hand, enterprises can shift the two-thirds of their budget keeping the lights on to the one-third of their budget focused on new projects.  After each project, this business process approach will shift the spending towards new projects and fund the innovation required to meet today's business challenges.
For more details, read the 9 part Forrester series on Long Term Apps Strategy starting with:
  1. Why You Need A Long-Term Apps Strategy
  2. Forrester's Long-Term Packaged Applications Strategy Framework
  3. Does Your Apps Strategy Support Your Corporate Business Drivers?
  4. Packaged Apps Strategies Take A Back Seat At Most Enterprises
  5. The ROI Of Packaged Apps Instance Consolidation
  6. Five Steps To Building A Recession Proof Packaged Apps Strategy
  7. Shape Your Apps Strategy To Reflect New SaaS Licensing And Pricing Trends
  8. Third Party Apps Maintenance Rebounds
  9. Craft Your Negotiations Strategy To Reflect New Packaged Apps Licensing And Pricing Trends
Your POV. Have you thought through your core business processes or are you still functionally oriented? Can you identify the commoditized business process? Have you seen any cost savings based on business process transformation Please post here or send me a private email to rwang0 at gmail dot com. Copyright © 2009 R Wang. All rights reserved.

Speaking Engagement: ZDNet Japan Business Applications Conference

Bellesalle Yaesu, Tokyo, Japan June 10, 2008  13:00-18:00 R "Ray" Wang Keynote Speech: Insights Into Building A Recession Proof Apps Strategy

ZDNet Japan ビジネス・アプリケーション カンファレンス

不況だからって、アプリケーションを止められますか?

いうまでもなく、不況です。不況はITコストの削減を生みます。しかし、いまや、ITは止められないばかりか、進化を続けなければなりません。 企業は情報システムへの投資をこれまで通り続けられない状況にあります。こうした状況においてこそ、情報システムを真剣に考え直すべきです。本イベントでは、そのなかでも、最もビジネスに近い層であるビジネスアプリケーションについて議論します。 小さく導入したアプリケーションを統制・連携するためのアーキテクチャーとしてはSOA、ビジネスの効率化をITに実装するためのBPM、所有から使用への新たな選択肢として脚光を浴びるSaaS…… 不況下でも企業が情報システムにできることはたくさんあるのです。

開催概要

名称
ZDNet Japan ビジネス・アプリケーション カンファレンス
開催日時
2009年6月10日(水)  12:30開場  13:00開演
場所
ベルサール八重洲 [会場について]
参加費
無料(事前登録制)
定員
300人
対象
CIO(情報に関する資源の統括、戦略立案、実行する責任者の方)/IT部門のマネージャ/業務でERP、CRM等アプリケーションに携わる方
特典
「来場者アンケート」にご回答いただいた方にQuoカードをプレゼントいたします。 また、抽選で200名の方に日経コンピュータ」を6ヶ月分プレゼントいたします。

セッション一覧

12:30 開場
13:00 | 14:00 基調講演
■不況に打ち勝つアプリケーション戦略を構築するための秘訣
ア プリケーション担当者は現在、新しいビジネスモデルの台頭、経済危機、労働力の変化、技術の進歩などのさまざまな変化に日々直面しています。特に、今日の 世界的な経済不況下においては、より企業のビジネス戦略に沿ったアプリケーション戦略を構築することが求められています。コンプライアンスや業務の効率化 は常に考えなければならない事項ですが、それだけでなく、企業が持続可能な変化を実現するためには、不況に打ち勝つことができるアプリケーション戦略が必 要です。今こそ、ビジネスプロセスをより効率化する機会を探し、最も効果的なテクノロジー戦略を選択し、ベンダーとの関係を見直す必要があります。今回の 講演では、アプリケーション担当者が今行うべきこと、つまり現在のアプリケーション戦略を最適化するための方策を5つのステップで解説します。それを実施 することにより、経費削減だけでなく、将来利益をもたらすビジネスへの投資を行う資金を生み出すことができるでしょう。 アジェンダ:
・ 企業が克服しなければならない4つのチャレンジ ・ 不況に打ち勝つアプリケーション戦略を構築するための5つのステップ
1.不況下におけるビジネスをサポートするアプリケーション戦略を構築する 2.持続可能な変化を実現できる組織を作る 3.コモディティ化されたプロセスと特殊なプロセスにおいて効率化の機会を探す 4.効果的なテクノロジー戦略(SaaS、SOA、BPM)を選択する 5.ベンダーとの関係を見直す
Ray Wang氏
フォレスターリサーチ バイスプレジデント兼プリンシパル・アナリスト [プロフィール]
14:00 | 14:50 講演
■日本IBM
(出演者調整中)
15:00 | 15:50 講演
■SoftwareAG
(出演者調整中)
15:55 | 16:45 講演
■依頼中
16:50 | 17:50 講演
■依頼中
※プログラムは、予告なしに内容や順番などを変更することがございます。ご了承ください。

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