Posts Tagged ‘business requirements’

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Single Instance ERP Harder And Harder To Justify Buy cytoxan, The holy grail of an ERP implementation used to be the single instance deployment.  However, market forces, a move to adopt new disruptive technologies, slow pace of innovation from incumbent vendors, and high maintenance fees have changed many organization's perspectives.  Add a slew of rapidly changing business requirements battling rigid legacy infrastructures and next gen CIO's have been forced to depart from the standard apps strategies.  In fact, improved integration, web services, and SaaS deployments have now improved the success rates and ROI for Two-Tier ERP apps strategies.

Purpose Built Capabilities And Cost Savings Drive Push For Two-Tier Apps Strategies


Recent Software Insider data surveys of next gen IT leaders in Q3 2009 and Q1 2010 show a 10% increase among organizations considering a Two-Tier ERP apps strategy (see Figure 1).  Key drivers behind moving to a Two-Tier ERP approach stem from:

  • Purpose built or industry requirements (89.61%), evista online. Epogen, Next gen IT leaders remain frustrated by the lack of innovation and progress in completing out promised functional footprints.  As market competition intensifies, industry specific, φτηνές φαρμακείο cytoxan, Cytoxan en ligne afin, purpose built solutions provide the competitive advantage needed for survival and success.

  • Existing systems too expensive (70.13%). ROI calculations on existing ERP systems often show high cost factors.  The culprits - overruns in implementation, customization of reports, Koop korting iressa, Køb discount iressa, maintenance payments on shelfware, increasing costs to staff, kopen goedkope zometa, Cheap casodex, and rigidity of system.

  • Upgrade too expensive (45.45%). Many customers face upgrade costs equivalent to reimplementation.  Cost factors could equal up to 85% of the original implementation cost.

  • Need to innovate (35.06%). Some organizations find that their vendors have not innovated fast enough, South Carolina SC S.C.. Cheapest gleevec online, Social channels have not been accounted for.  User experiences seem dated.  Reporting and analytics require experts to deliver.  Paucity in mobile solutions hinder productivity.

  • Regulatory compliance (24.68%). The need to meet industry specific regulatory compliance drive organizations to choose purpose built solutions.  Many choose SaaS to mitigate the costs of legislative and regulatory updates.

  • Geographic requirements (19.48%), buy cytoxan. Country or region specific requirements may require two-tier strategies based on geography.  Some ERP systems lack the language or tax requirements and a separate instance will prove cheaper to run than customizing a monolithic large ERP solution.

  • Existing systems too rigid (15.58%), Osta gleevec online. Acheter capecitabine discount, Rigidity may lead to the inability to integrate and work with other systems, new channels, kopen goedkope gleevec, Halvalla evista apteekki, and emerging stakeholders.  Integration solutions can assist, but long term, billige gleevec Apotheke, Nevada NV Nev., next gen IT leaders will begin to surround legacy solutions with newer technologies.


Figure 1. Two Tier ERP Strategies Gain Favor In Next Gen IT Leader Apps Strategies

screen-shot-2010-03-02-at-53732-pm


Figure 2.  Industry Requirements And Cost Drive Push To Two-Tier Apps Strategies

screen-shot-2010-03-02-at-53724-pm


The Bottom Line - Users Should Consider Scenarios Based On Business Models And Geographic Needs

Detailed apps strategy conversations highlight 3 scenarios where Two-Tier ERP strategies make sense.  A number of vendors have proven to be strong partners in enabling Two-Tier ERP (see Figure 3), iressa online store. Gleevec farmacia a buon mercato,


  1. Different business models. Organizations with very different lines of businesses often consider hub and spoke implementations.  The drive to standardize on a single ERP system makes little sense when one subsidiary delivers services and the other manufactures goods.  Several large multi-national conglomerates leverage more than two-tiers of ERP to handle a warranty business, financial services, North Carolina NC N.C., Evista no prescription, and power generation manufacturing.

  2. Country specific deployments. Deploying a full scale ERP solution makes little sense for new subsidiaries when options exist at lower operating costs and higher ROI.  One large Japanese manufacturer found cost savings with local based systems in North America and EMEA.

  3. Phased modernization efforts. Organizations looking to upgrade and modernize their systems may keep some legacy systems in place as they upgrade to more modern systems.  One large entertainment concern has kept their financials systems and updated their retail systems with a more modern, web services based, generic epogen, District of Columbia DC D.C., SOA architected product.


Figure 3. Vendors To Watch In Two-Tier ERP Apps Strategies

screen-shot-2010-03-02-at-71143-pm


Your POV. Buy cytoxan, Have you deployed a Two-Tier ERP strategy. How has it gone?  What's worked, comprar en línea cytoxan. Order cytoxan without prescription, What's not?  You can post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity.

Please let us know if you need help with your enterprise apps strategy by:


  • Developing your enterprise apps strategy?

  • Addressing disruptive technologies like Social CRM, order arimidex online legally, Cloud Computing, SaaS deployment, and Two-Tier ERP?

  • Assessing the ROI of a Two-Tier ERP strategy?


* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

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


Related Resources

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20091208 Tuesday's Tip: 2010 Apps Strategies Should Start With Business Value

20091102 Best Practices: Lessons Learned In What SMB's Want From Their ERP Provider

20091006 Tuesday's Tip: Why Free Software Ain't Really Free

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Standard Support Returns After Much Deliberation

SAP announced today that they would be reintroducing their Standard Support offering.  Customers now gain choice Order cytoxan without prescription, with a 2-tier maintenance offering. Here are the details between standard support and enterprise support, comprar casodex. Georgia GA Ga.,


  • Standard Support Offering reintroduces at 18%. Customers seeking core bug fixes, gleevec kopen, Ordering capecitabine, support packages, risk mitigation, Mississippi MS Miss., Tennessee TN Tenn., and related new functionality will have choice in staying on standard support.  The program is designed for customers who seek to keep their systems up and running.  Customers with CPI clauses in their contracts will want to take note - the first set of consumer price index (CPI) price increases will begin January 1st, 2012.

  • Enterprise Support remains at 22%, pharmacy capecitabine. Iowa IA, SAP will continue to offer Enterprise Support at 22% for new customers and a ramp up for existing customers (see Figure 1).  Enterprise support includes features such as best practices for IT operations, proactive monitoring and reporting, acquistare online capecitabine, Goedkope casodex apotheek, and transparency for business process performance.  Customers who choose to go with Enterprise Support prior to March 15th, 2010 will be eligible for ramp up.

  • Supplemental offerings still available, buy zometa. Other programs such as Max Attention, Safeguarding, and Product Support for Large Enterprises (PSLE) will continue to be available by choice and invitation.


Figure 1, order cytoxan without prescription. Ordering evista overnight delivery, SAP's New Support Pricing Scale

[caption id="attachment_4087" align="alignnone" width="529" caption="(Source: SAP)"]screen-shot-2010-01-14-at-74603-am[/caption]

The Bottom Line - Best Support Scenarios Will Depend On Your Previous and Current Contracting Prowess

The good news - SAP's spent considerable amount of time listening to their customers.  The result - customers do want choice and there are plenty of choices to be made.  Decisions on which option is best can be best summarized by asking a few key questions:


  • Are you expanding your use of SAP in the next 3 to 5 years? Determine your pace of adoption for SAP products.  If you are planning to add more modules then you will want to consider Enterprise Support.  If you are not, then you should be moving to standard support and considering 3rd party maintenance in 12 to 18 months.

  • Do you have a CPI increase in your contract, capecitabine farmacia a buon mercato. Buy zometa online without prescription, If you do, then you'll want to see if the total is above the inflation rate or the enterprise support ramp up of 6% per annum.  The best case is to have negotiated CPI + 0% but most SAP customers have CPI +5% as standard, arimidex kopen, Arimidex online kaufen, well over the 6%.

  • What's your overall SAP apps strategy. How will you harness innovation within and around SAP?  What's your plan in the next 12 to 18 months?  What will you be doing with SaaS?  How will you be incorporating portals such as Sharepoint?

  • Can you make a decision on Enterprise Support by March 15, buy gleevec cheap, Order casodex online, 2010? Existing customers who have not moved to Enterprise Support must make a decision in order to go with the slow ramp up.  Those who wait after March 15, 2010 will start at 22% maintenance.


A sample output for clients would be a decision matrix based on multiple factors.  Below is one example for used with clients in an early morning call with 2 key factors of CPI increase in contract versus adoption of SAP.  Other factors will include when your contracts began and what lifecycle of adoption your organization are in, comprar iressa. Mississippi MS Miss., (See Figure 2):

Figure 2.  Sample SAP Support Decision Matrix

[caption id="attachment_4088" align="alignnone" width="599" caption="Copyrighted © 2001- 2010 R "Ray" Wang and Insider Associates LLC."]Copyrighted © 2001- 2010  R "Ray" Wang and Insider Associates LLC.[/caption]

Your POV

Need help with your contract negotiations?  Tap into the experience of thousands of contract negotiations.  Have a story to share about SAP contracts. Order cytoxan without prescription, Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

* Not responsible for any factual errors or omissions.  However, Osta zometa online, Buy zometa online cheap, happy to correct any errors upon email receipt.

Other Useful Software Contract Negotiations Links

Tuesday's Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

Tuesday's Tip: Do Not Bundle Your Support and Maintenance Contracts, Michigan MI Mich.. Billige zometa apotek,

Tuesday's Tip: Software Licensing and Pricing - Do Not Give Away Your Third Party Maintenance And Access Rights

Tuesday's Tip: 3 Approaches To Return Shelfware

Tuesday's Tip: Software Licensing and Pricing - Now's The Time To Remove "Gag Rule" Clauses In Your Software Contracts


Related Blogs, Press, Nebraska NE Nebr., and Links

MUST READ - 2010017 Irregular Enterprise - Dennis Howlett "SAP's Maintenance Cost Sleight of Hand"

News Analysis: SAP Moves All Customers Onto More Expensive Enterprise Support

News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20100115 SearchSAP.com/TechTarget - Courtney Bjorlin " Choosing Standard or Enterprise support more difficult for SAP customers with no KPIs "

20100114 IDC - Amy Konary at IDC "Guest Post: Back by Popular Demand, A Basic Maintenance Offering from SAP"

20100114 Forrester Blogs - Paul Hamerman "SAP's Tiered Support Announcement Diffuses a Contentious Issue"

20100114 IDG News - Chris Kanaracus "SAP shakes up support structure, executive organization"

20100114 Enterprise System Spectator - Frank Scavo "Flash: SAP backs down on 22% maintenance fees"

20100114 Information Week - Doug Henschen "SAP Reintroduces Tiered Maintenance"

20100114 ComputerWorldUK - Mike Simons "Update: SAP does U-turn on Enterprise Support"


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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Competition Intensifies For The Small And Medium Organization's Software Budget
Order irresa, Software vendors such as Oracle and SAP can no longer rely on their large enterprise customers for double digit year-over-year growth.  In fact, their customers have not only reached a saturation point in being able to consume new solutions, but have also faced demands to cut their large maintenance bills.  With nowhere to go, enterprise apps vendors now turn to the small and medium sized market to drive their growth plans.  Consequently, billion to multi-billion dollar SMB stalwarts such as Infor, Microsoft, Sage, and Lawson are not standing still.  In fact, they seek opportunities to take market share from the industry leaders while fending off challenges from sub $500M SMB vendors such as Agresso, CDC Software, Deltek, Epicor, Exact, IFS, NetSuite, QAD, and Syspro.

Small And Medium-Sized Organizations Seek Enterprise Class Solutions Without The Resource Overhead

Globalization, irresa, Iresa, regulatory compliance, and economic demands results in similar market pressures for all sizes of business.  Size no longer plays a relevant role in business requirements.  In fact, irresa, Iresa, a recent survey of over 100 small and medium sized organizations, shows similar needs as large enterprises.  However, irresa, Irresa, small and medium-sized organizations can not afford the resource overhead required to maintain large and complex software systems.  The 10 areas that drive vendor selection decisions include (see Figure 1):

Figure 1. Small and medium sized organizations seek enterprise class solutions without the resource overhead

screen-shot-2009-10-24-at-82008-am


The Bottom Line - Ten Lessons Learned Emerge From Recent Vendor Selection Trends

  • Invest in last mile industry focused solutions.Customers expect their vendor to speak their language.  Solutions that lack vertical fluency and limited industry customer referencability will be relegated to the ERP graveyard, iresa. Irresa, Lessons learned: Demonstrate thought leadership in each vertical and lead industry discussions.  Focus on a handful of verticals.

  • Focus on rapid implementation and realization. Gone are the days of 12 to 18 month deployments.  Customers seek deployments times with less than 3 months, irresa.
    Lessons learned: Consider SaaS and OnDemand options.  Templates and productized roll-outs improve time to market but can't compete with  SaaS solutions and onDemand offerings in demonstrating value to customers.

  • Expand the number of trusted partners and vendors, order irresa. Irresa, As SMB's expand across the globe, they expect vendors to invest in trusted partners for both delivery and product footprint.  Customers expect partners to assist with localization in new geographies, iresa, Iresa, extend vertical solutions, and integration, irresa. Irresa, Lessons learned: Build partner ecosystems to geometrically expand reach while meeting customer needs.  No vendor can deliver on all customer needs.

  • Deploy easy to use reporting tools and BI. Value out of the box requires BI and reporting tools to be proactive and pervasive.  Users should have access to relevant and timely information along business processes, iresa. Irresa, Lessons learned: Design reporting tools with the end in mind.   Start with the value of information and embed throughout the business process.

  • Reduce administrative complexity and ownership costs. Order irresa, SMB's seek enterprise class capabilities sans the resource overhead of traditional large ERP products.  Business users need to be able to make changes and extend the system.  Ownership costs such as maintenance should deliver value or be reduced.
    Lessons learned: Design self-service administration capabilities from the get-go, irresa, Iresa, not an afterthought.  Software maintenance needs to deliver value or be offered in tiers based on perceived value.

  • Apply Web 2.0 style usability. Solutions should not require extensive training.  New generations of work expect the simplicity and ease of use from consumer based web applications, irresa. Irresa, Lessons learned: Invest in user experience and user interaction.  Design process flow based on role-based personas.

  • Improve stakeholder access. Employees, irresa, Irresa, partners, and customers must gain access to key business information.   Value should not be locked away from users when disconnected.  Mobile remains a future growth area, iresa.
    Lessons learned: Allow information to be accessed by everyone, everywhere, and at anytime.  New stakeholders will need access so apps should be designed with bullet-proof role based security.

  • Embed Microsoft Office Integration, order irresa. Irresa, Ability to use productivity tools should be a given.  Customers seek the ability to seamlessly integrate.
    Lessons learned. Success requires the design Office integration to be both a user interface and gateway into applications.  Clunky interfaces into Microsoft fail in adoption.

  • Deliver worry free updates, irresa. Customers should be able to update and upgrade software without significant time spent testing integrations and taking down the system.
    Lessons learned. Design application management into the system design.  Consider the business impact of down time.

  • Provide financing options Order irresa, .  Customers now expect vendors to provide financing to facilitate license purchases.  In many cases, clients seek financing to preserve cash position and add additional services such as training and implementation.
    Lessons learned. Use financing as deal enabler to drive not only license growth, but also larger deal sizes.  Financing is a weapon.



Your POV


Prospects and customers - do these requirements ring true?  Vendors -where are you with your SMB strategy. Let us know how we can assist.  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. All rights reserved.

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Tuesday’s Tip: Use The Organizational Hierarchy Of Needs To Prioritize Apps Strategies

Organization's face significant prioritization challenges as they plan their 2010 apps strategies.  Faced with shrinking budgets, competing priorities, increased management scrutiny, outdated legacy apps, and uncertain economic conditions, organizations must answer key questions such as:
  • How do I determine which business requirements carry more weight?
  • Where do regulatory requirements fit when compared to other priorities?
  • What's a good prioritization scheme to rank projects and initiatives?
  • Can I justify my budget or request for additional funding?
  • When can I move towards social media?
  • What's my social enterprise/Web 2.0 / Enterprise 2.0 strategy?
As with Abraham Maslow's motivational theory for individuals, organizations follow a hierarchy of needs.  Based on five key stages, the Organizational Hierarchy of Needs provides one proven classification methodology to prioritize business requirements and drivers in determining enterprise apps strategies (see Figure 1).  The five stages in detail include initiatives and projects can be defined as:
  • Brand - priorities focused on expanding the image and appeal of an organization's outside perception including building connectedness
  • Strategic differentiation - priorities that create game changing transformation or business model disruptions including the adoption of newer social enterprise apps or connected business solutions.
  • Sales and growth - priorities that drive top line improvements.
  • Operational efficiency - priorities that drive business efficiencies including cost optimization, process transformation, and elimination of redundancy.
  • Regulatory compliance and controls - priorities that keep the CXO's out of jail, respond to a health and safety requirement, mitigate liabilities, or be compliant with new regulations.
Figure 1. Organizational Hierarchy of Needs R "Ray" Wang's Organizational Hierarchy of Needs
The bottom line - start your apps strategy by applying a prioritization framework of business requirements and drivers 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, you can begin crafting your apps strategy around organizational readiness, business process optimization, technology strategy, and vendor ecosystems. Your POV Have you begun planning your apps strategy for 2010?  If not, do you need assistance in planning out a strategy for 2010?  If you have a plan, how well does the Organizational Hierarchy of Needs assist in your efforts?  Post your comment here or reach me direct at r at altimetergroup dot com or r at softwareinsider dot org. Copyright © 2009 R Wang. All rights reserved.