Archive for the ‘Technology’ Category

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Maverick buying SaaS Solutions

May 27, 2008

As I wrote in my last blog entry, SaaS (Software as a Service) is gaining more ground in coporate IT strategies but taking a closer look sometimes the CIO is completely left out in the decision making process for SaaS. The nature of SaaS solutions is that they can be implemented and used without even involving the IT department and this is what happens in a lot of companies.

The driving force to implement a SaaS systems is in many cases the operating department (e.g. the purchasing, sales or marketing department). If an operating department needs to move fast to solve an issues or to gain a competitive advantage the barrier for maverick buying a SaaS solution is very low. More and more CIOs find out about these systems long after they have been implemented and used. Of course SaaS solutions are also easy to get rid of from a technical standpoint but do you really want to take the hassle to reverse such decisions?

In my view – if IT wants to maintain its leading position, they need to proactively incorporate SaaS in their strategies and offer expert support in the SaaS selection process e.g. when it comes to the negotiation of service level agreements and the concept of a future integration concept for SaaS solutions.

Posted in Software as a Service, Technology | Leave a Comment »

Why Software-as-a-Service is gaining ground

May 19, 2008

Software as a Service or SaaS (how we geeks call it) is gaining more and more ground in Corporate IT strategies and the current momentum in new web technologies also known as Web 2.0 will give it an even greater push. I have scanned the blogs of several opinion leaders in SaaS and I have summarized the key reasons for this development which I think can also be witnessed in current ePurchasing engagements.

Purchasing Managers need to go virtual

The growing virtualization is not only a technology trend, but it is also a business trend. eProcurement and eSourcing have brought Purchasing higher up on the corporate agenda but this has also caused higher expectations from the purchasing experts – more global projects, more travel and less time. Traditional systems sitting behind the firewall can no longer fulfill the needs of a modern purchasing manager. SaaS is perfectly suited for these new, virtual business requirements.

Traditional Software vendors jump on the band wagon

Just a couple of years ago SaaS was not really expected to make it into the strategies of the big traditional software vendors. The light weight business model of SaaS was regarded as a clear threat against the heavy weight behind-the-firewall strategies. Today even SAP and Oracle have entered the band wagon still struggling with the right price models but well aware of the growing importance of it.
SaaS is recession proof

Cost-control and flexibility is an important differentiating factor in times of an uncertain economic and political landscape. The adoption of SaaS on a pay-as-you-go basis will help successful companies to stay agile if investments need to be stretched. 
Corporate IT departments have accepted SaaS

6 years ago one of the biggest deal blockers for on-demand eSourcing deals where the internal IT departments. We had to argue against requirements like: “We have an Oracle strategy! Do you support DB2? SQL Server is not part of our IT strategy!” They where actually afraid of SaaS, thinking it could eliminate their jobs. This has clearly changed. SaaS has become a natural part of IT strategies.
Inspired by these blogs:

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Posted in Software as a Service, Technology | Leave a Comment »

What SRM Can Gain From Social Networking

May 12, 2008

Private Social Networks like Facebook and MySpace have seen a tremendous development in the last two years and the concept of social networking has spread to almost any area of private life. Also some corporations are slowly starting to leverage the power of social networking to interact and collaborate with their customers and employees.

So how can Supplier Relationship Management leverage this new way of communicating and sharing information?

When searching for “Social Networking” in relation with “SRM” I only found one article on Supply Chain Management Review which really tackles the topic. Here is a quote which I think summarizes the benefits quite well:

Consider several of the main advantages MySpace and similar technologies bring: communication (instant, structured, unstructured, and syndicated), globalization, and on-demand collaboration. These technologies provide a powerful means for exchanging information between and within enterprises. And, they have the added benefits of being inexpensive, innovative, and fast. Embracing some of these technologies in the same way teenagers have welcomed social software like MySpace and Facebook, could go a long way in overcoming some longstanding supply management challenges. From Joe Raudabaugh – full article http://www.scmr.com/article/CA6492754.html

If you have an account on Facebook (or on any other big social network) you will realize how easy it is to get and to stay in touch with someone. By linking up with a person (which usually takes not more than a mouse click) you will instantly gain access to a great amount of information about this person and to information about other people connected to this person. The network enables you to share files with a group of people, run discussions and collaborate globally. Now just imagine doing this with your suppliers – sounds good to me! I will definitely dig deeper!

Posted in Business, Organization, Personal, Technology | 3 Comments »

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