Team A SaaS Strategy

1
Team A SaaS Strategy
2
What is a strategy?

• Strategy is the direction and scope of an
  organization over the long-term which achieves
  advantages for the organization through its
  configuration of resources within a challenging
  environment, to meet the needs of markets and
  fulfill stakeholder expectations.
• A strategy is a plan of actions designed to
  achieve a particular plan.
• Deliverable SaaS Strategy Document

3
SaaS strategy elements

• The Threat and Opportunity Matrix will help
  identify and prioritize the long-term
  opportunities of implementing a SaaS strategy.

Long-term opportunities

• The Threat and Opportunity Matrix will help
  identify the long-term threats of implementing a
  SaaS strategy.

Long-term threats

• From the SaaS Universe we need to select those
  domains that worth pursuing at the state level.

Selection of domains

• Multiple agencies use a single software instance.
  Identify the horizontal and vertical application
  domains.

Multi-tenants selection

• Brainstorm and select top essential and desirable
  criteria for picking vendors.

Vendor criteria
SaaS Strategy Document
4
Threat and Opportunity Matrix
Hindrance (Threat)
Help (Opportunity)
Financial
Security
Staffing
Financial
Staffing
Security
Short Term
Security
Financial
Updates
Resources
Operations Costs
Maintenance
Long Term
5
SaaS strategy elements

• The Threat and Opportunity Matrix will help
  identify and prioritize the long-term
  opportunities of implementing a SaaS strategy.

Long-term opportunities

• The Threat and Opportunity Matrix will help
  identify the long-term threats of implementing a
  SaaS strategy.

Long-term threats

• From the SaaS Universe we need to select those
  domains that worth pursuing at the state level.

Selection of domains

• Multiple agencies use a single software instance.
  Identify the horizontal and vertical application
  domains.

Multi-tenants selection

• Brainstorm and select top essential and desirable
  criteria for picking vendors.

Vendor criteria
SaaS Strategy Document
6

• Sales force automation
• Customer service contact center
• Enterprise marketing management

Employee performance management ? E-recruitment
? Corporate learning system ?
CRM
HR
Enterprise governance (Risk and compliance
platform) ?

• Financial /accounting software
• Expense management
• ERP

Finance
Compliance
SaaS Universe
E-mail archiving ? Unified communication ? Social
software ?
Collaboration
Document Management

• Content management

• Warehouse management
• Transportation management
• Web hosting and hosted Cloud System
  Infrastructure Service (IaaS)

Supply chain planning ? E-procurement ?
Supplier relationship management ?
Procurement
Others
7
What are the domains the State should pursue?
8
SaaS strategy elements

• The Threat and Opportunity Matrix will help
  identify and prioritize the long-term
  opportunities of implementing a SaaS strategy.

Long-term opportunities

• The Threat and Opportunity Matrix will help
  identify the long-term threats of implementing a
  SaaS strategy.

Long-term threats

• From the SaaS Universe we need to select those
  domains that worth pursuing at the state level.

Selection of domains

• Multiple agencies use a single software instance.
  Identify the horizontal and vertical application
  domains.

Multi-tenants selection

• Brainstorm and select top essential and desirable
  criteria for picking vendors.

Vendor criteria
SaaS Strategy Document
9
Multi-tenant approach (horizontal vs. vertical
applications)

• Multitenancy refers to a principle in software
  architecture where a single instance of the
  software runs on a server, serving multiple
  client organizations (tenants).

10
SaaS strategy elements

• The Threat and Opportunity Matrix will help
  identify and prioritize the long-term
  opportunities of implementing a SaaS strategy.

Long-term opportunities

• The Threat and Opportunity Matrix will help
  identify the long-term threats of implementing a
  SaaS strategy.

Long-term threats

• From the SaaS Universe we need to select those
  domains that worth pursuing at the state level.

Selection of domains

• Multiple agencies use a single software instance.
  Identify the horizontal and vertical application
  domains.

Multi-tenants selection

• Brainstorm and select top essential and desirable
  criteria for picking vendors.

Vendor criteria
SaaS Strategy Document
11
How do we select vendors?

• Essential criteria
• Desirable criteria

12
Vendor selection criteria
Essential
Desirable

?

?

?

?

?

?
13
SaaS strategy elements

• The Threat and Opportunity Matrix will help
  identify and prioritize the long-term
  opportunities of implementing a SaaS strategy.

Long-term opportunities

• The Threat and Opportunity Matrix will help
  identify the long-term threats of implementing a
  SaaS strategy.

Long-term threats

• From the SaaS Universe we need to select those
  domains that worth pursuing at the state level.

Selection of domains

• Multiple agencies use a single software instance.
  Identify the horizontal and vertical application
  domains.

Multi-tenants selection

• Brainstorm and select top essential and desirable
  criteria for picking vendors.

Vendor criteria
SaaS Strategy Document
14
SaaS Strategy Document
15
SaaS strategy elements

• The Threat and Opportunity Matrix will help
  identify and prioritize the long-term
  opportunities of implementing a SaaS strategy.

Long-term opportunities

• The Threat and Opportunity Matrix will help
  identify the long-term threats of implementing a
  SaaS strategy.

Long-term threats

• From the SaaS Universe we need to select those
  domains that worth pursuing at the state level.

Selection of domains

• Multiple agencies use a single software instance.
  Identify the horizontal and vertical application
  domains.

Multi-tenants selection

• Brainstorm and select top essential and desirable
  criteria for picking vendors.

Vendor criteria
SaaS Strategy Document
16
Team A

• Report-out

17
What it a SaaS Strategy and why is it important?

• The Software as a Service (SaaS) strategy
  represents the methodology and process guidelines
  for the ongoing acquisition of SaaS solutions.
• There are a variety of benefits to the State
  including opportunities of lower cost of
  ownership, improved data and process performance
  and process consistency. On demand solutions
  historically have provided reduced maintenance
  costs, faster implementation and adoption times.
  This strategy provides the opportunity to foster
  consistency of software applications across
  agencies, improve quality and efficiency and
  reduce risk.

18
Stakeholders affected

• Agency business owners
• Citizens
• CIOs
• IT staff
• Enterprise business owners
• Legislature (must adopt budget perspective)
• Local government
• Federal government

19
Long Term Strategies

• Effective/Efficient Procurement Process
• Effective ongoing menu of SaaS services
  (available online)
• Stakeholder engaged governance
• At some point having all stakeholders provide
  input for a hybrid model
• A funding model that allocates funding for a SaaS
  model. (Requirement for re-allocation of funding
  methodology)
• Appropriate development of standards for SaaS
  solutions

20
Threat and Opportunity Matrix
Hindrance (Threat)
Help (Opportunity)
Short Term
Quality improvement
Resource efficiency
Quick
Business Process Improvement
Change Adverse
Process Changes
Risk
Funding
Standards
Long Term
Transition
Cost savings
Vendor
Exiting
Data
Security
21
Addressing risk factors
Risk Factors Mitigation Actions Designated party to take action
Agency Agreement on Common Functions-Administrative Functions not valued Master Change Facilitation to come to agreement. Workshops with stakeholders to come to common understanding. Individual agency and Enterprise level
Threat of Employee Job Loss--cultural change-Impact to Workforce Cost Benefit Analysis, Part of Communications strategy, outreach to staff and the unions Enterprise level
Transition Develop a Transition Plan, incorporate terms and conditions in documents in how we would make a transition, Individual agency and Enterprise level
Unable to realize savings due to SDC Work with SDC finance committee, Cost Benefit Analysis, TCO considering sunk costs and planning cycles, prior investment made Individual agency
Existing Technology Inconsistency Developing Standards for SaaS applications Enterprise level
How to manage the data -- privacy Applying Information Security Architecture Standards for SaaS applications Individual agency and Enterprise level
Ineffective Procurement Process Crafting a Procurement Process that is calculated to achieve the outcomes that is necessary to achieve this strategy, Ensure agencies know how to state their requirements in a SaaS offering through an online menu of SaaS applications readily accessible to state agencies to establish an account. DAS- SPO (State Procurement Office)
Lack of ability to determine TCO (ST)  Establish a few key common performance indicators metrics for the TCO model. Establish baseline for candidate SaaS opportunities DAS- SPO (State Procurement Office) Enterprise level
22
Addressing risk factors (cont.)
Risk Factors Mitigation Actions Designated party to take action
Lack of Data Interoperability  Establish a requirement with the SaaS vendor, evaluation prior to the purchase DAS- SPO (State Procurement Office)
Changing vendors  In the contract process mitigate these risks for an exit strategy DAS- SPO (State Procurement Office)
The complexities and lead time for getting agreement with agencies to allow clear pathways for procurement process Published SaaS procurement process DAS- SPO (State Procurement Office)
Vendor support and reliability  Establish a requirement with the SaaS vendor, evaluation prior to the purchase (financial statements, backbone of the company) DAS- SPO (State Procurement Office)
Executive Approval--executives burned at the stake for taking risks  Formal agency buy-in and endorsement as you go. (When you roll out programs start with small pilot, staged approach) Enterprise level
Funding and Budget Process  Partner with BAM and LFO to develop a funding strategy and alternatives for SaaS that would be discussed with legislative committee Enterprise level
Legislative Opposition  Education, Socializing, Early successes, staged approach with pilot Enterprise level
Potential Loss of Data or Data breach -- Public Records, Privacy, Is the information on the system secure? What are the security issues? Established in the contract, must meet DAS security standards and policies. Assessment and evaluation to comply with state and federal laws and communicated with vendor in the contract SLAs. Understanding the risk going in at the RFP stage versus the contract stage. Understanding the inherit risk of the data model. DAS- SPO (State Procurement Office)
23
No. SaaS Solution Selection Criteria Horizontal Vertical
1 Avoid duplication - the State should be using a single instance of the software. Yes Yes
2 Enable business needs the selected solutions has to directly address and help achieve specific business needs of the agencies and state as an enterprise. Yes Yes
3 Vendor stability / maturity the selected vendor needs to have a stable financial situation and experience in delivering the solution its track record needs to prove the maturity and stability. Yes Yes
4 Vendor capacity / Disaster recovery the selected vendor needs to have the capacity to satisfy the State needs for a large number of end-users. Yes Yes
5 Interoperability the new SaaS solution needs to integrate well with the diverse applications and systems the State agencies us Yes Yes
6 Cost and time of implementation the benefits of implementation need to outweigh the effort - financial effort as well as other resources required. Yes Yes
7 Scalability the vendor needs to be able to deliver high quality solution to an increased number of end users over time Yes Yes
8 Security and privacy the vendor needs to be able to address the security and privacy requirements of the agencies. Yes Yes
9 Tiered pricing/service offerings because of the large number of end-user inside the agencies, the State needs to look at opportunities for achieving economies of scale. Yes Yes
10 Exiting before acquiring a solution the State needs to develop an exiting strategy this refers to vendor change or even changing back to hosted solutions. Yes Yes
11 Functionality the basic attributes of the solution needs to be satisfy specific requirements the agencies set Yes Yes
12 Enterprise authority for horizontal solutions that will be implemented state-wide, the State needs to assign an executive team in charge of high-level decision making for the new solution. Yes Not applicable
13 Stakeholder group for horizontal application the State needs to select a multi-agency team in charge of dealing with any issues related to the new solution. Yes Not applicable
14 Short and long term cost when acquiring a new solution the TCO (Total Cost of Ownership) needs to be calculated for short and long-term and the cost effectiveness needs to be addressed. Yes Yes

1 A horizontal application is a software
package designed to be used by many different
kinds of organizations and individual users. In
terms of the SaaS strategy, horizontal
applications refer to applications that will be
used by all /multiple agencies. 2 A vertical
application is a software package designed to be
used by a single market. In terms of the SaaS
strategy, vertical application refer to
applications that will be used by single agencies
for particular needs specific to the area of
business.
24
Action Plan
What Action/ Commitment Who - Responsibility When - Deadline
Communications Plan for the SaaS Strategy CIOC Workgroup Multi- Agency Workgroups Ben Berry, Master Change Facilitator On-going November 2009
Staffing strategy- Do no Harm re-allocation versus elimination of resources (reallocation of IT staff that used to work on the hosted solution) Human Resource Services Division (HRSD ) Diana Foster Administrative Business Services Directors (ABSD) TBD
Security and privacy, public records and legal approach monitor vendors access to confidential data ESO State Procurement Department of Justice (DOJ) Archives TBD
Review best practices and industry standards to formulate/develop recommendations for the State procurement and RFP process Designated Procurement Officers Diana Lancaster Jan Dean TBD
Review the inventory of common deployed software and identify SaaS opportunities See Team Cs results Agency CIOs Agency Business Managers Enterprise System Owners (DAS and other agencies) December 2009
Review existing procurement practices and develop streamline SaaS procurement methodology See Team Bs results Designated Procurement Officers Diana Lancaster Agency CIOs and State CIOs office DOJ - Business Transaction Unit December 2009
Conduct outreach to other States and Federal agencies and document their experience See example from Gartner study CIOC and Multi- Agency Workgroups End-users TBD