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©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
©2008 Deloitte. All rights reserved3
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
©2008 Deloitte. All rights reserved4
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
©2008 Deloitte. All rights reserved5
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
©2008 Deloitte. All rights reserved
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
©2008 Deloitte. All rights reserved
Software as a Service overviewIs Software as a Service taking off?
8
©2008 Deloitte. All rights reserved
Software as a Service overviewIs Software as a Service taking off?
9
©2008 Deloitte. All rights reserved
Software as a Service overviewVendor Perspective: The Economies Of Scale Of SaaSBusiness Models At Different Levels Of Maturity
©2008 Deloitte. All rights reserved11
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
©2008 Deloitte. All rights reserved
Cost Impact
On-Premise SaaS
Setup Cost
Deployment
Recurring Cost
Software as a Service overviewTotal Cost of Ownership
Small impact High impact
©2008 Deloitte. All rights reserved13
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
©2008 Deloitte. All rights reserved
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.
©2008 Deloitte. All rights reserved15
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
©2008 Deloitte. All rights reserved
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
©2008 Deloitte. All rights reserved
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
©2008 Deloitte. All rights reserved
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
©2008 Deloitte. All rights reserved19
Software as a Service overviewQuestions
©2008 Deloitte. All rights reserved20
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.