Team A SaaS Strategy

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1 Team A SaaS Strategy

2 What is a strategy? Strategy is the direction and scope of an organization over the long-term term: : which achieves advantages for the organization through its configuration of resources within a challenging environment,, to meet the needs of markets and fulfill stakeholder expectations. A strategy is a plan of actions designed to achieve a particular plan. Deliverable: SaaS Strategy Document 2

3 SaaS strategy elements Long-term opportunities Long-term threats Selection of domains Multi-tenants selection Vendor criteria SaaS Strategy Document The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. The Threat and Opportunity Matrix will help identify the long-term threats 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. Brainstorm and select top essential and desirable criteria for picking vendors. 3

4 Threat and Opportunity Matrix Hindrance (Threat) Help (Opportunity) Financial Security Staffing Financial Security Staffing Long Term Short Term Updates Resources Operations Costs Financial Security Maintenance 4

5 SaaS strategy elements Long-term opportunities Long-term threats Selection of domains Multi-tenants selection Vendor criteria SaaS Strategy Document The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. The Threat and Opportunity Matrix will help identify the long-term threats 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. Brainstorm and select top essential and desirable criteria for picking vendors. 5

6 Employee performance management E-recruitment Corporate learning system HR CRM Sales force automation Customer service contact center Enterprise marketing management Enterprise governance (Risk and compliance platform) Compliance Finance Financial /accounting software Expense management ERP archiving Unified communication Social software Collaboration SaaS Universe Document Management Content management Supply chain planning E-procurement Supplier relationship management Procurement Others Warehouse management Transportation management Web hosting and hosted Cloud System Infrastructure Service (IaaS) 6

7 What are the domains the State should pursue? Human Resources Collaboration CRM Finance Document Management Compliance Procurement Others 7

8 SaaS strategy elements Long-term opportunities Long-term threats Selection of domains Multi-tenants selection Vendor criteria SaaS Strategy Document The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. The Threat and Opportunity Matrix will help identify the long-term threats 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. Brainstorm and select top essential and desirable criteria for picking vendors. 8

9 Multi-tenant approach (horizontal vs. vertical applications) SaaS domains Human Resources Compliance Collaboration Procurement Customer Relationship Management Finance Document Management Other SaaS Products Agency names ODOT DAS DHS Multitenancy refers to a principle in software architecture where a single instance of the software runs on a server, serving multiple client organizations (tenants). 9

10 SaaS strategy elements Long-term opportunities Long-term threats Selection of domains Multi-tenants selection Vendor criteria SaaS Strategy Document The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. The Threat and Opportunity Matrix will help identify the long-term threats 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. Brainstorm and select top essential and desirable criteria for picking vendors. 10

11 How do we select vendors? Essential criteria Desirable criteria 11

12 Vendor selection criteria Essential Desirable 12

13 SaaS strategy elements Long-term opportunities Long-term threats Selection of domains Multi-tenants selection Vendor criteria SaaS Strategy Document The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. The Threat and Opportunity Matrix will help identify the long-term threats 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. Brainstorm and select top essential and desirable criteria for picking vendors. 13

14 SaaS Strategy Document 14

15 SaaS strategy elements Long-term opportunities Long-term threats Selection of domains Multi-tenants selection Vendor criteria SaaS Strategy Document The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. The Threat and Opportunity Matrix will help identify the long-term threats 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. Brainstorm and select top essential and desirable criteria for picking vendors. 15

16 Team A Report-out 16

17 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. 17

18 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 18

19 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 19

20 Threat and Opportunity Matrix Long Term Short Term Quality improvement Resource efficiency Hindrance (Threat) Cost savings Quick Business Process Improvement Risk Funding Help (Opportunity) Standards Transition Change Adverse Process Changes Exiting Data Vendor Security 20

21 Addressing risk factors Transition Risk Factors Agency Agreement on Common Functions-Administrative Functions not valued Threat of Employee Job Loss-- cultural change-impact to Workforce Unable to realize savings due to SDC Mitigation Actions Master Change Facilitation to come to agreement. Workshops with stakeholders to come to common understanding. Cost Benefit Analysis, Part of Communications strategy, outreach to staff and the unions Develop a Transition Plan, incorporate terms and conditions in documents in how we would make a transition, Work with SDC finance committee, Cost Benefit Analysis, TCO considering sunk costs and planning cycles, prior investment made Designated party to take action Individual agency and Enterprise level Enterprise level Individual agency and Enterprise level Individual agency Existing Technology Inconsistency How to manage the data -- privacy Ineffective Procurement Process Lack of ability to determine TCO (ST) Developing Standards for SaaS applications Applying Information Security Architecture Standards for SaaS applications 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. Establish a few key common performance indicators & metrics for the TCO model. Establish baseline for candidate SaaS opportunities Enterprise level Individual agency and Enterprise level DAS- SPO (State Procurement Office) DAS- SPO (State Procurement Office) Enterprise level 21

22 Addressing risk factors (cont.) Risk Factors Lack of Data Interoperability Changing vendors The complexities and lead time for getting agreement with agencies to allow clear pathways for procurement process Vendor support and reliability Executive Approval--executives burned at the stake for taking risks Funding and Budget Process Legislative Opposition Potential Loss of Data or Data breach -- Public Records, Privacy, Is the information on the system secure? What are the security issues? Mitigation Actions Establish a requirement with the SaaS vendor, evaluation prior to the purchase In the contract process mitigate these risks for an exit strategy Published SaaS procurement process Establish a requirement with the SaaS vendor, evaluation prior to the purchase (financial statements, backbone of the company) Formal agency buy-in and endorsement as you go. (When you roll out programs start with small pilot, staged approach) Partner with BAM and LFO to develop a funding strategy and alternatives for SaaS that would be discussed with legislative committee Education, Socializing, Early successes, staged approach with pilot 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. Designated party to take action DAS- SPO (State Procurement Office) DAS- SPO (State Procurement Office) DAS- SPO (State Procurement Office) DAS- SPO (State Procurement Office) Enterprise level Enterprise level Enterprise level DAS- SPO (State Procurement Office) 22

23 No. SaaS Solution Selection Criteria Horizontal Vertical 1 Avoid duplication - the State should be using a single instance of the software. 2 Enable business needs the selected solutions has to directly address and help achieve specific business needs of the agencies and state as an enterprise. 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. 4 Vendor capacity / Disaster recovery the selected vendor needs to have the capacity to satisfy the State needs for a large number of end-users. 5 Interoperability the new SaaS solution needs to integrate well with the diverse applications and systems the State agencies us 6 Cost and time of implementation the benefits of implementation need to outweigh the effort - financial effort as well as other resources required. 7 Scalability the vendor needs to be able to deliver high quality solution to an increased number of end users over time 8 Security and privacy the vendor needs to be able to address the security and privacy requirements of the agencies. 9 Tiered 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. 10 Exiting before acquiring a solution the State needs to develop an exiting strategy: this refers to vendor change or even changing back to hosted solutions. 11 Functionality the basic attributes of the solution needs to be satisfy specific requirements the agencies set 12 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. Not applicable 13 Stakeholder 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. Not applicable 14 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. 23

24 Action Plan What Action/ Commitment Communications Plan for the SaaS Strategy Staffing strategy- Do no Harm reallocation versus elimination of resources (reallocation of IT staff that used to work on the hosted solution) Security and privacy, public records and legal approach monitor vendor s access to confidential data Review best practices and industry standards to formulate/develop recommendations for the State procurement and RFP process Review the inventory of common deployed software and identify SaaS opportunities See Team C s results Review existing procurement practices and develop streamline SaaS procurement methodology See Team B s results Conduct outreach to other States and Federal agencies and document their experience See example from Gartner study Who - Responsibility CIOC Workgroup Multi- Agency Workgroups Ben Berry, Master Change Facilitator Human Resource Services Division (HRSD ) Diana Foster Administrative Business Services Directors (ABSD) ESO State Procurement Department of Justice (DOJ) Archives Designated Procurement Officers Diana Lancaster Jan Dean Agency CIOs Agency Business Managers Enterprise System Owners (DAS and other agencies) Designated Procurement Officers Diana Lancaster Agency CIOs and State CIOs office DOJ - Business Transaction Unit CIOC and Multi- Agency Workgroups End-users When - Deadline On-going November 2009 TBD TBD TBD December 2009 December 2009 TBD 24

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