SaaS eases two types of burden company had to bear

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A-SaaS(1) SaaS eases two types of burden company had to bear Yoshiro Kitahara President & CEO Lacras Corporation

Our Expertise Provide flexible combination of three HRM components into one : Multi-tenant tenant HRM Database; Multi-tenant tenant Workflow engine; Business Process Outsourcing (BPO). 8 8 years of experience on SaaS since 1999. High profile as the only one HRM SaaS + BPO provider in Japan. SaaS has exceeded ASP written by Yoshiro Kitahara 2

Our Mission Client Organization Organization HR HR Flow Flow Compensation Compensation Collection Collection & delivery delivery Interface Payroll, Payroll, and Response and Response to Interface to Database with Database Social Social Security Employee Security Employee Questions with Questions Outside Outside Administration Administration Lacras Web Web Workflow Workflow Employee Employee Helpdesk Helpdesk HRM HRM Database Database & Payroll Payroll system system Hardware, Hardware, Network, Network, Security Security Equipment, Equipment, IDC IDC 3

HRM Components 4

Target Company Lacrasio For SSC Lacrasio SaaS Lacrasio +DB Web Workflow + HRM Database + Business Model Lacrasio +BPO SaaS Web Workflow SaaS Web Workflow + HRM Database SaaS Web Workflow + HRM Database + Business Process 5

Economy of scale Economics of SaaS In order to gain economy of scale,, you must put as many as data in the single instance. This is the golden rule for data processing economy. Under the broadband Internet circumstances, you d d better to put as many as tenants in the single instance. Easy-to to-customize If you want to put as many as tenants in the single instance, you u must have technical excellence to manage multi multi-rule there. Each rule must be easy-to to-customize: functionally, timely, and easy-to to- upgrade. Stress-free user interface. Stress-free interface is another key element for SaaS vendor s s economy. 6

1 st Burden SaaS can ease Once you purchase software, you have to possess both advantage and burden such as: Cash-out at purchasing; Facility, equipment, and engineers must be prepared to run the software; s Day to day system administration. SaaS takes these burden away. Cash-out incurs after SaaS vendor started the service; Facility, equipment, engineers, as well as the software should beb e run by SaaS vendor; It is not your responsibility to manage the whole system safely and stably, but SaaS vendor s. 7

2 nd Burden SaaS can ease ASP SaaS Small Package Large Package Self Developed SaaS fits business areas which are common burden with company s s own policy & procedure, such as updating employee profile, paying salary, administrating social security, booking, etc.. SaaS does not fit business areas which relate to company s s competitiveness, differentiate factor, or making value, for now. 8

Success Factors for SaaS Vendors Pursue Economy of Scale : Target on business areas where SaaS fits; Complete business plan, since it s s hard to withdraw once you started on SaaS; Reduce cancellation, hopefully mechanism should be built-in. in. Avoid knock-out out risk: Build in complete security program to avoid a knock-out out risk. Improve quality continuously: Build in continuous improvement PDCA cycle on service quality; 9

Future Enhancement of SaaS Expand to variety of service menu, but the golden rule always applies. Extend to the areas relate to company competitiveness, but SaaS never to relate to Key Competence of of the company. Domain specific SaaS will be activated. 10