Infosys’ BPM-EAI blog offers a platform to discuss the latest trends in the Business Process Management and Enterprise Application Integration spaces. Exchange thoughts, ideas and opinions with Infosys experts on how BPM and EAI programs can be leveraged to achieve operational excellence and maximize your return on investment.

« Documenting the Dinosaur | Main | Taming the Taxosaur »

In a SaaS based setup what should be controlled by enterprise

I am not too sure about the title, but I had to enter a title to share my thoughts. And this is the best I could think at this point.

Now coming to the question, which I was asked few weeks back

"Company X has decided to go for SaaS based applications to run its enterprise and are not sure how to get control over these applications which are scattered over different clouds"..

It is an interesting situation which was never an issue in a typical on-premise deployment.

However when any organization chooses to go for SaaS based deployment, I would believe that organization has implicitly decided to let go the control over application and the data architecture which drives application behavior. This means the real issue that organization is facing is

"How can Organization's IT ensures that SaaS based applications can consistently deliver to the business goal if they have no control over these application architecture which are providing services to their business directly"

Let us analyze the situation with a perspective

Company X has gone for these SaaS applications for different specialize functional areas for example a SaaS based application for CRM, Product Management (which includes pricing), eCommerce (Ordering), Order Management, Billing and After Sales Support. Considering each of these functional areas is specialized area it made perfect sense for Company X to go for different SaaS offering for each of their functional areas. I think this holds good for COTS based strategy too for on-premise deployment.

And at the same time there are customer facing end to end processes (for both on-premise and SaaS deployment) like "Prospect To Cash" which are customer touch point based process which make use of services from each functional area to meet customer need. These are sometimes are referred as Operational processes.

Now the question is how does organization manage these when nothing is on-premise?

In my view to manage this, IT should align itself to business to manage its Key performance indicators (KPI) rather than focusing on application architecture.

Either in an on-premise deployment or SaaS based deployment these functional and operational process areas are typically governed by Functional and Operational KPIs, which IT should provide as Management Information dashboard to business.

Example of a Functional KPIs is for product management functional area is "time to market" of new products or "number of product variance introduced". And similarly example of operational KPI is "cycle time" for "Prospect to Cash" process.

Hence for a SaaS based deployment where the application architecture control is minimal it is important for organization to have clarity on the functional and operational KPI based on business goals and manage these set of SaaS applications through these KPI's. To do this the key elements that organization should have in place are

  • High-level Process views for both functional and operational process (typically till L2 level)
  • Business Goals broken down to Business KPI and aligned to each functional and operational process areas
  • Enterprise Data models which would drive 
    • Operational data stores to create management information report for the established KPI
    • Data acquisition from each SaaS application with appropriate mapping to create accurate report
    • Standardized data payload definition for Service based integration of each functional to realize a smooth integration required for end to end operational process
  • A common integration platform that should provide the integration fabric required for realizing the end to end process. Which in turn should be utilized to create the BAM view for the end to end operational process
  • And at the end a BAM view over the functional Process to manage the process performance within each functional area. For which Organization should demand the real time KPI view from the SaaS vendors

However for SaaS based deployment data security should be the foremost concern that organization should address first and then look at the KPI based approach to manage the SaaS application landscape.

TrackBack

TrackBack URL for this entry:
http://www.infosysblogs.com/apps/mt-tb.cgi/4149

Comments

Manas,

You have said a lot in this post. KPI's are a must in the environment you have described, and the idea of the IT aligning itself to business is the challenge faced by everyone with or without SaaS.
In the SAAS environment there are a few key architectural concerns that need to be addressed for success to be achievable. As you mentioned data security and the underlying integration architecture are critical. All of these systems both outsourced and in-house need to be able to communicate seamlessly. The need for an SOA architecture and canonical data model is critical.
I also believe that as a company begins down the road to SaaS for its applications it must have an architecture and the systems in place to manage their data within their own "walls". This leads us down the path of Master Data Management. The details of the application data that has been outsourced may not need to be controlled, but the business critical master data will not only drive the KPI's you mention, but provide the knowledge and measures for key business decisioning in the organization. This is more than just a canonical model, but a true Master Data Management architecture and the supporting systems.
Just to add a little to your thoughts…..

Completely agree. Master Data in a SaaS based scenario will be key..

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

Please key in the two words you see in the box to validate your identity as an authentic user and reduce spam.

Subscribe to this blog's feed

Follow us on

Blogger Profiles

Infosys on Twitter