1. Team A SaaS Strategy

2. 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

3. 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

4. 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

5. 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

6. 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
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

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

8. 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

9. 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).

10. 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

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

12. Vendor selection criteria
Essential
___________________
Desirable
___________________
Essential
Desirable      

13. 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

14. SaaS Strategy Document

15. 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

16. Team A
Report-out

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.

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

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

20. 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

21. 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

22. 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.

23. 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.

24. 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