Deloitte Software As A Service Deloitte Seminar

©2008 Deloitte. All rights reserved1

Software as a Service

Deloitte Oracle Siebel on Demand Seminar

8 Oktober 2008, Amsterdam

Background

• Theo Slaats (42) is a partner in the Customer

Relationship Management (CRM) practice of Deloitte.

• He specialises in Marketing Automation and

Customer Relationship Management.

• Most of his clients are in the Telecommunications

and Consumer Business industry.

Experience

• CRM strategy and roadmap development

• Strategic CRM transformation programme and call

centre solution implementation.

• Inbound marketing implementation.

• Development of a European core sales platform and

deployment to multiple countries across Europe.

• Implementation of a consumer dialog solution.

Partner

Office Details

Laan van Kronenburg 2

1183 AS Amstelveen

Phone: +31-20-4547018

Fax: +31-20-4547555

Mobile: +31-6-52672525

Email: [email protected]

Software as a Service overviewIntroducing Theo Slaats

mailto:[email protected]


Software as a Service overviewAgenda

• What is Software as a Service?

• On-Premise versus SaaS

• Is Software as a Service taking off?

• Benefits & limitations

• Total Cost of Ownership

• Return On Investment

• Total Economic Value

• Getting started

• How Deloitte can help


Software as a Service overviewWhat is Software as a Service?

• Software as a Service are rich internet applications that are hosted by a third-

party service provider and billed on a usage or per-user basis

– Web Based, hosted applications

– Delivers business applications anytime, anywhere – “On Demand”

– No Hardware, No Software – the vendor owns and hosts the application

– Multi-tenant, common infrastructure & codebase

– Not the ASP model from the 1990’s

• Selected players in SaaS


Software as a Service overviewOn-Premise versus SaaS

Deployment factors On-Premise SaaS

Initial Costs

Hardware

Software Licenses

Network

Development

Per Seat/Per user Per Month

Development

Ongoing Costs Software Hardware Maintenance

Upgrades

Yearly subscription renewal

Training

Customized end user training and

support critical for successful

deployment

Customized end user training

and support critical for

successful deployment

Scalability

Need to have hardware to

support expansion

Additional hardware not

needed

Need to add new

subscriptions

Flexibility

Can customize extensively, but

difficult to upgrade

customizations

Limited customization, but

seamless upgrade paths

©2008 Deloitte. All rights reserved

“25 Percent of New Business Software Will Be Delivered As Software As A Service by 2011”

QuotationGartner / November 10 2006


Software as a Service overviewIs Software as a Service taking off?

7

• The Big Switch:

from “One Machine” to “Living in the Cloud”

• Cheap utility-supplied computing will

ultimately change society as profoundly as

cheap electricity did



8



9


Software as a Service overviewVendor Perspective: The Economies Of Scale Of SaaSBusiness Models At Different Levels Of Maturity


Software as a Service overviewBenefits & Limitations

Benefits

Maintenance and

upgradeability

No/limited

hardware cost

Speed to market

Configurability

Scalability

Limitations

Compatibility

Recurring

monthly cost

Customization

Capability limitations

Security


Cost Impact

On-Premise SaaS

Setup Cost

Deployment

Recurring Cost

Software as a Service overviewTotal Cost of Ownership

Small impact High impact


Software as a Service overviewReturn on Investment

Time

Go Live ~ 12 Months

Risk

27 month

Breakeven

On-Premise

Time

Go Live: ~ 6-18 Weeks

Value to

Customer

6 month

Breakeven

SaaS

Risk

http://www.gartner.com/silentlocalechooser.jsp?locale=wcw


Scenario No. 4: Large

Enterprise With 2,500

Employees And 500 Users

September 2006, Tech Choices “Comparing The ROI Of SaaS Versus On-Premise Using Forrester’s TEI™ Approach”

Scenario No. 1: Medium-Small Business With 100 To 249 Employees And 50 Users

Software as a Service overviewTotal Economic Impact

TCO: Total Cost of OwnershipTEI: Forrester's Total Economic Impact™ methodology,

includes key factors like benefits, risks, and flexibility of the deployment option.


Software as a Service overviewGetting started

Is your project driven by business sponsorship with limited involvement from the IT department?

Do you have security restrictions against a third party storing sensitive data (privacy, government, financial, etc.)?

Do you require a low cost solution that

requires limited IT resources and budget?

Do you require high level of customizations to fit the business requirements or deep industry specific applications?

Do you have limited custom integrations and require a simple upgrade strategy?

Do you need to have complete control of

down-times for maintenance?

Do you need a fast implementation because

the timeline is aggressive and require a

solution that is easy to use?

Is loss of access to the system due to network issues not acceptable?

Are the business requirements handled by the provider's existing functionality (do not allow a vendor to promise needed features as part of the next release)?

Is your volume of business transactions very

high?

Does the organization not have additional infrastructure resources to handle maintaining something new on premise?

Do you have complex integration

requirements?

Software as a Service On-Premise


Software as a Service overviewHow Deloitte can help

Sprint.2.CRM ™

Deloitte’s years of experience in business transformation and process redesign culminates in a collection of pre-defined best practice process prints organized by specific Industry. These Industry Prints™ are the basis for defining future state processes. Once the Industry Print™ is modified for a specific client, the resulting Client Print™ is the intellectual property of the client.

Industry Print™

Deloitte has developed an On Demand project management toolkit that enables our clients to track issues, requirements, and feature requests. Custom reports are then used to monitor requirements, system requests and enhancements.

Project Management Toolkit

The Enterprise Value Map™ is a practical tool that links potential improvement initiatives and shareholder value. It depicts Deloitte’s value orientation - that we understand the intended business impact of our efforts.

Enterprise Value Map™

LeverageIncome-

GeneratingAssets

SHAREHOLDER VALUE

Revenue Growth Operating Margin

Volume Price Realization

Acquire NewCustomers

Retain andGrow Current

Customers

StrengthenPricing

Cost of Goods Sold(COGS)

Property, Plant &Equipment

(PP&E)

Merchandising

ProductDevelopment

Logistics &Distribution

ServiceDelivery

Materials

ImproveDevelopment& Production

Efficiency

ImproveLogistics &

Service ProvisionEfficiency

Product andService

Innovation

AccountManagement

Retention

Demand &Supply

Management

Production

Inventory

Marketing &Sales

Cash / AssetManagement

PriceOptimization

Asset Efficiency

Selling, General &Administrative

(SG&A)

ImproveCustomer

InteractionEfficiency

ImproveCorporate/

Shared ServiceEfficiency

Marketing &Advertising

Sales Real Estate

IT, Telecom&

Networking

Cross-Sell /Up-Sell

CustomerService &Support

OrderFulfillment &

Billing

HumanResources

Procurement(Excluding Production

Materials & Merchandise)

Expectations

CompanyStrengths

ExternalFactors

Receivables& Payables

BusinessManagement

FinancialManagement

Real Estate &Infrastructure

Equipment &Systems

FinishedGoods

Work inProcess &

Raw Materials

Accounts, Notes& InterestReceivable

Accounts, Notes& Interest

Payable

ProgramDelivery

ProgramDelivery

BusinessPlanning

Partnership &Collaboration

RelationshipStrength

Agility &Flexibility

StrategicAssets

(People, Technology,Intellectual Capital,Relationships, etc.)

OperationalExcellence

ImprovePP&E

Efficiency

ImproveInventoryEfficiency

ImproveReceivables& PayablesEfficiency

ImproveManagerial

Effectiveness

ImproveExecution

Capabilities

How Value is Created

(Value Drivers)

What You Can Do

(Improvement Levers:

Business Processes, Assets

and Organizational

Capabilities)

Product andService

Innovation

BusinessPerformanceManagement

Level 3 – Subprocess: A logical grouping of

activities resulting in a workflow with multiple

inputs and outputs which often involves multiple

people and departments.

Level 4 – Activity: A discrete action, or set of

actions, that has specific inputs and specific

outputs, which can require a single individual or

multiple people to complete.

Opportunity Management

O-020

Create

Opportunity

O-030

Update

Opportunity

O-040

Determine

customer’s needs

O-050

Define sales

schedule

O-070

Determine call

approach / strategy

O-080

Call on target

accounts

O-080

Call on target

accounts

O-090

Overcome

objections

O-100

Check resource

availability

O-110

Develop quote

and price

O-120

Negotiate with

customer

O-130

Manage and

track sales calls

O-010

Identify Target

Accounts

O-045

Develop and

Maintain Customer

Credit Lines

O-060

Determine call

objective

Obtain list of potential target

Determine targeting criteria

Apply targeting criteria

Identify key target accounts

Establish contacts

Sales

Level 2 – Process: A recurring set of actions

that produces value for a customer and

consultants by transforming some set of “inputs”

into some set of “outputs.”

• Time-based (month-end closing process,

annual planning process)

• Event-triggered (customer inquiry process,

new product introduction)

Level 1 – Core Processes: Focus Area

(Sales and Delivery)

Our Sprint.2.CRM methodology provides an established set of processes, tools, and templates for On Demand implementations. This methodology provides value by provides a project management framework with the delivery tools and templates to accelerate On Demand implementations.

16


Software as a Service overviewHow Deloitte can help

Our Sprint.2.CRM methodology provides an established set of processes, tools, and templates for On Demand implementations. This methodology provides

value by provides a project management framework with the delivery tools and templates to accelerate On Demand implementations.

Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11

Project Prep

Require-

ments,

Process & Scope

User Acceptance Testing

Go-Live

Training

Deploy

Stabilise

Design

Build

System Test

A typical timeline for a project driven by an approach that captures and

prioritises business requirements based on time, cost/benefit and

impact to the business in the context of what can and cannot be readily

accomplished with an On Demand CRM application.

This is a sample project timeline that needs modifications

based on specific scoping parameters of your implementation

The below timeline represents typical heavy implementation offering for Siebel On Demand projects focusing on one key process area such as Sales, Service or Marketing.

17


Software as a Service overviewHow Deloitte can help – Implementation Approach

The above timeline represents typical heavy implementation offering for Siebel On Demand projects focusing on one key process area such as Sales, Service or Marketing.

18

Design

Build

System Test

Cutover

Go-Live

Post Go-live Support

User Acceptance Test

Training

Plan

Requirements, Process & Scope

Build Complete

Design Review

Application Build Review (ABR)

Joint Application Design (JAD)

Plan Design Build Test Deploy Support

Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12

Initial Planning

Require-ments Analysis &

Design

Implementation

Integra-tion

& User Accep-tance

Testing Unit

Testing

Deployment

http://www.salesforce.com/index.jsp

http://www.salesforce.com/index.jsp


Software as a Service overviewQuestions


About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which isa legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its Member Firms.

http://www.deloitte.com/about

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