Team A SaaS Strategy

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What is a strategy? ““Strategy is the Strategy is the directiondirection and scope of an and scope of an

organization over the organization over the long-termlong-term: which achieves : which achieves advantagesadvantages for the organization through its for the organization through its configuration of resources within a challenging configuration of resources within a challenging environmentenvironment, to meet the needs of , to meet the needs of marketsmarkets and fulfill stakeholder expectations.” and fulfill stakeholder expectations.”

“A strategy is a plan of actions designed to achieve a particular plan.”

Deliverable: SaaS Strategy DocumentSaaS Strategy Document

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Selection of domains

Multi-tenants selection

Vendor criteria

SaaS Strategy SaaS Strategy DocumentDocument

Long-term opportunities

Long-term threats

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

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

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

SaaS strategy elementsSaaS strategy elements

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

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

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Long

Ter

m

Sho

rt T

erm

Hindrance (Threat) Help (Opportunity)

Threat and Opportunity Matrix

Financial Security Staffing Financial Security Staffing

Updates Resources Operations Costs FinancialMaintenance

Security

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Vendor criteria



Long-term threats







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Sales force automation

Customer service contact center

Enterprise marketing management

Employee performance management E-recruitment

Corporate learning system

CRMHR

Supply chain planning E-procurement

Supplier relationship

management

Document Management

Finance

Collaboration

Procurement

Compliance

Others

Enterprise governance (Risk and compliance platform)

Content management

Financial /accounting software Expense management ERP

Warehouse management Transportation management

Web hosting and hosted Cloud System Infrastructure Service (IaaS)

E-mail archiving Unified communication

Social software

SaaSSaaS UniverseUniverse

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What are the domains the State should pursue?

Finance

DocumentManagement

Collaboration

Compliance

Human Resources

Procurement

CRM

Others

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Vendor criteria



Long-term threats







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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).

ODOT DAS DHS … …Human Resources

Compliance

Collaboration

Procurement

Customer Relationship Management

Finance

Document Management

Other SaaS Products

SaaS domains Agency names

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Vendor criteria



Long-term threats







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How do we select vendors?

Essential criteria Desirable criteria

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Vendor selection criteria

Essential

Desirable

Essential

___________________

______________________________________

_________________________________________________________

______________________________________

Desirable

___________________

______________________________________

_________________________________________________________

______________________________________

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Vendor criteria



Long-term threats







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SaaS Strategy Document

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Vendor criteria



Long-term threats







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Team A

Report-out

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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.

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Stakeholders affected

1. Agency business owners

2. Citizens

3. CIO’s

4. IT staff

5. Enterprise business owners

6. Legislature (must adopt budget perspective)

7. Local government

8. Federal government

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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

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Long

Ter

m

Sho

rt T

erm

Hindrance (Threat) Help (Opportunity)

Threat and Opportunity Matrix

Quality improvement

Resource efficiency

Cost savings

Quick Business Process

Improvement

Risk

Exiting

Funding Standards

Data

Transition

Change Adverse

Security

Process Changes

Vendor

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Addressing risk factorsRisk Factors Mitigation Actions

Designated party to take

actionAgency 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

TransitionDevelop a Transition Plan, incorporate terms and conditions in documents in how we would make a transition,


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 -- privacyApplying Information Security Architecture Standards for SaaS applications


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

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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


Changing vendors In the contract process mitigate these risks for an exit

strategy


The complexities and lead time for getting agreement with agencies to allow clear pathways for procurement process Published SaaS procurement process


Vendor support and reliability

Establish a requirement with the SaaS vendor, evaluation prior to the purchase (financial statements, backbone of the company)


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 SLA’s. Understanding the risk going in at the RFP stage versus the contract stage. Understanding the inherit risk of the data model.


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No. SaaS Solution Selection CriteriaHorizont

al Vertical

1 Avoid duplication - the State should be using a single instance of the software. Yes Yes

2Enable 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

4Vendor 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

5Interoperability – the new SaaS solution needs to integrate well with the diverse applications and systems the State agencies us Yes Yes

6Cost and time of implementation – the benefits of implementation need to outweigh the effort - financial effort as well as other resources required. Yes Yes

7Scalability – the vendor needs to be able to deliver high quality solution to an increased number of end users over time Yes Yes

8Security and privacy – the vendor needs to be able to address the security and privacy requirements of the agencies. Yes Yes

9Tiered 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

10Exiting – 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

11Functionality – the basic attributes of the solution needs to be satisfy specific requirements the agencies set Yes Yes

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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

13Stakeholder 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

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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

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Action PlanWhat – 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 vendor’s 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 C’s 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 B’s 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

Team A SaaS Strategy

Documents

Transcript of Team A SaaS Strategy