Forrester’s Ten Key Strategies for Pivoting Business Applications to SaaS discusses ten key strategies, the traditional approach of the strategy and the SaaS applications approach of the strategy. The ten key strategies fall under several different categories – positioning of SaaS within the organization’s technology strategy, focusing on SaaS buyer behaviors and SaaS deployment and operating models.
Forrester’s article explains, “Using a software-as-a-service (SaaS) model, you can turn historically batch processes into real-time processes, improve user and customer experiences and focus on business outcomes instead of working around technology limitations.” To embrace SaaS, one must recalibrate and modernize business applications strategy and delivery models.
The first two initiatives relate to the positioning of SaaS. The maturity of SaaS in many business functions is clear from indicators. To position SaaS as the foundation of your Application Strategy, consider the applications strategy of adopting a SaaS-first or SaaS-only approach and then build your applications strategy with a clear eye on SaaS prioritization. The traditional approach of this is on-premises and is the default applications deployment model, but the SaaS applications approach is that SaaS is a core tenet of business applications strategy. The second initiative in this category is Value Proposition: focus decisions on maximizing outcomes, not just savings. You should position SaaS business benefits ahead of technology cost savings. The traditional approach would be systems justification is driven by expected cost savings, but with the SaaS approach, business outcomes make SaaS investments more attractive.
Next, we look at initiatives that focus on SaaS buyer behaviors. The software selection process should shift from onsite software demonstrations and exhaustive Request For Proposal (RFP) requirements to a series of test drives. The Software Selection initiative means modernizing your software selection process by selecting SaaS software based on hands-on experience. With the SaaS approach, there are online trials and configured demonstrations as opposed to the traditional lengthy RFPs and on-site demonstrations. Using financial and nonfinancial measures to determine vendor viability will help recalibrate the viability criteria for SaaS. By mastering SaaS commercial models to optimize cost management and flexibility, you can understand how to take advantage of the SaaS models – this is the Commercial Models initiative. The SaaS approach involves recurring subscription costs including use, support, and enhancements as opposed to the traditional high upfront costs and annual maintenance fees.
The remaining five initiatives focus on deployment and operating models for long-term values and success as a SaaS customer. The Integration Strategy involves plumb cloud integration capabilities for real-time insights. To do this, you should glue SaaS applications and mission-critical systems together in real-time. By assimilating software changes quickly and helping the business innovate; you can embrace the accelerated versioning cadence of SaaS, which is the Improvement and Innovation initiative. Through the Risk Mitigation initiative, mitigate SaaS risks with contingency plans and continuous monitoring, take a measured approach to SaaS vendors based on “Zero Trust”. There would be continuous monitoring and risk management. Optimize your SaaS customer experience and ecosystem by measuring SaaS value and engaging in customer community activities to improve Vendor Relationships. For this initiative, by using the SaaS applications approach there is active customer engagement and renewals are based on earing customer satisfaction. The customer would not be locked-in a maintenance contract. The final initiative is Ownership and Governance: embed SaaS governance in the business by enabling lines of business to manage SaaS applications. Business unit owns and manages SaaS systems with the SaaS applications approach as opposed to an IT organization being in control.
The key takeaways are SaaS replacements are a catalyst for process innovation, choose between SaaS-First and SaaS-Only and road map your SaaS journey based on business priorities and solution maturity.