Team A SaaS Strategy

What is a strategy? Deliverable: SaaS Strategy Document “Strategy is the direction and scope of an organization over the long-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

SaaS strategy elements The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. Long-term opportunities The Threat and Opportunity Matrix will help identify the long-term threats of implementing a SaaS strategy. Long-term threats From the SaaS Universe we need to select those domains that worth pursuing at the state level. Selection of domains Multiple agencies use a single software instance. Identify the horizontal and vertical application domains. Multi-tenants selection Brainstorm and select top essential and desirable criteria for picking vendors. Vendor criteria SaaS Strategy Document 3

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

SaaS strategy elements The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. Long-term opportunities The Threat and Opportunity Matrix will help identify the long-term threats of implementing a SaaS strategy. Long-term threats From the SaaS Universe we need to select those domains that worth pursuing at the state level. Selection of domains Multiple agencies use a single software instance. Identify the horizontal and vertical application domains. Multi-tenants selection Brainstorm and select top essential and desirable criteria for picking vendors. Vendor criteria SaaS Strategy Document 5

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

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

SaaS strategy elements The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. Long-term opportunities The Threat and Opportunity Matrix will help identify the long-term threats of implementing a SaaS strategy. Long-term threats From the SaaS Universe we need to select those domains that worth pursuing at the state level. Selection of domains Multiple agencies use a single software instance. Identify the horizontal and vertical application domains. Multi-tenants selection Brainstorm and select top essential and desirable criteria for picking vendors. Vendor criteria SaaS Strategy Document 8

Multi-tenant approach (horizontal vs. vertical applications) Multitenancy refers to a principle in software architecture where a single instance of the software runs on a server, serving multiple client organizations (tenants).

SaaS strategy elements The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. Long-term opportunities The Threat and Opportunity Matrix will help identify the long-term threats of implementing a SaaS strategy. Long-term threats From the SaaS Universe we need to select those domains that worth pursuing at the state level. Selection of domains Multiple agencies use a single software instance. Identify the horizontal and vertical application domains. Multi-tenants selection Brainstorm and select top essential and desirable criteria for picking vendors. Vendor criteria SaaS Strategy Document 10

How do we select vendors? Essential criteria Desirable criteria

Vendor selection criteria Essential ___________________ Desirable ___________________ Essential Desirable      

SaaS strategy elements The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. Long-term opportunities The Threat and Opportunity Matrix will help identify the long-term threats of implementing a SaaS strategy. Long-term threats From the SaaS Universe we need to select those domains that worth pursuing at the state level. Selection of domains Multiple agencies use a single software instance. Identify the horizontal and vertical application domains. Multi-tenants selection Brainstorm and select top essential and desirable criteria for picking vendors. Vendor criteria SaaS Strategy Document 13

SaaS Strategy Document

SaaS strategy elements The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities of implementing a SaaS strategy. Long-term opportunities The Threat and Opportunity Matrix will help identify the long-term threats of implementing a SaaS strategy. Long-term threats From the SaaS Universe we need to select those domains that worth pursuing at the state level. Selection of domains Multiple agencies use a single software instance. Identify the horizontal and vertical application domains. Multi-tenants selection Brainstorm and select top essential and desirable criteria for picking vendors. Vendor criteria SaaS Strategy Document 15

Team A Report-out

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.

Stakeholders affected Agency business owners Citizens CIO’s IT staff Enterprise business owners Legislature (must adopt budget perspective) Local government Federal government

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

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

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

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

SaaS Solution Selection Criteria No. SaaS Solution Selection Criteria Horizontal Vertical 1 Avoid duplication - the State should be using a single instance of the software. Yes 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. 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. [1] A horizontal application is a software package designed to be used by many different kinds of organizations and individual users. In terms of the SaaS strategy, horizontal applications refer to applications that will be used by all /multiple agencies. [2] A vertical application is a software package designed to be used by a single market. In terms of the SaaS strategy, vertical application refer to applications that will be used by single agencies for particular needs specific to the area of business. [1] A horizontal application is a software package designed to be used by many different kinds of organizations and individual users. In terms of the SaaS strategy, horizontal applications refer to applications that will be used by all /multiple agencies. [2] A vertical application is a software package designed to be used by a single market. In terms of the SaaS strategy, vertical application refer to applications that will be used by single agencies for particular needs specific to the area of business.

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