1. Team A SaaS Strategy

2. 2 What is a strategy? “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.” “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.” SaaS Strategy Document Deliverable: SaaS Strategy Document

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

4. 4 Long Term Short Term Hindrance (Threat) Help (Opportunity) Threat and Opportunity Matrix FinancialSecurityStaffingFinancial Security Staffing UpdatesResourcesOperations Costs Financial Maintenance Security

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

6. 6  Sales force automationSales force automation  Customer service contact centerCustomer service contact center  Enterprise marketing managementEnterprise marketing management Employee performance management Employee performance management  E-recruitment E-recruitment  Corporate learning system Corporate learning system  CRMHR Supply chain planning Supply chain planning  E-procurementE-procurement  Supplier relationship management management  Document Management Finance Collaboration Procurement Compliance Others Enterprise governance (Risk and compliance platform) Enterprise governance (Risk and compliance platform)   Content managementContent management  Financial /accounting softwareFinancial /accounting software  Expense managementExpense management  ERPERP  Warehouse managementWarehouse management  Transportation managementTransportation management  Web hosting and hosted Cloud System Infrastructure Service (IaaS)Web hosting and hosted Cloud System Infrastructure Service (IaaS) E-mail archiving E-mail archiving  Unified communication Unified communication  Social software Social software  SaaSUniverse

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

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

9. 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. 10 Selection of domains Multi-tenants selection Vendor criteria SaaS Strategy Document Long-term opportunities Long-term threats The Threat and Opportunity Matrix will help identify and prioritize the long-term opportunities 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. SaaS strategy elements The Threat and Opportunity Matrix will help identify the long-term threats of implementing a SaaS strategy. Brainstorm and select top essential and desirable criteria for picking vendors.

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

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

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

14. 14 SaaS Strategy Document

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

16. 16 Team A Report-out

17. 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. 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

19. 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. 20 Long Term Short Term Hindrance (Threat) Help (Opportunity) Threat and Opportunity Matrix Quality improvement Resource efficiency Cost savings QuickBusiness Process Improvement Risk Exiting FundingStandards Data Transition Change Adverse Security Process Changes Vendor

21. 21 Addressing risk factors Risk FactorsMitigation 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 unionsEnterprise level Transition Develop a Transition Plan, incorporate terms and conditions in documents in how we would make a transition, Individual agency and Enterprise level Unable to realize savings due to SDC Work with SDC finance committee, Cost Benefit Analysis, TCO considering sunk costs and planning cycles, prior investment madeIndividual agency Existing Technology InconsistencyDeveloping Standards for SaaS applicationsEnterprise level How to manage the data -- privacy Applying Information Security Architecture Standards for SaaS applications Individual agency and Enterprise level 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 DAS- SPO (State Procurement Office) Enterprise level

22. 22 Addressing risk factors (cont.) Risk FactorsMitigation 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 DAS- SPO (State Procurement Office) The complexities and lead time for getting agreement with agencies to allow clear pathways for procurement processPublished SaaS procurement process DAS- SPO (State Procurement Office) Vendor support and reliability Establish a requirement with the SaaS vendor, evaluation prior to the purchase (financial statements, backbone of the company) DAS- SPO (State Procurement Office) 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 committeeEnterprise level Legislative Opposition Education, Socializing, Early successes, staged approach with pilotEnterprise level 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. DAS- SPO (State Procurement Office)

23. 23 No.SaaS Solution Selection Criteria HorizontalVertical 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.Yes 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.Yes 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.Yes 5 Interoperability – the new SaaS solution needs to integrate well with the diverse applications and systems the State agencies usYes 6 Cost and time of implementation – the benefits of implementation need to outweigh the effort - financial effort as well as other resources required.Yes 7 Scalability – the vendor needs to be able to deliver high quality solution to an increased number of end users over timeYes 8 Security and privacy – the vendor needs to be able to address the security and privacy requirements of the agencies.Yes 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.Yes 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.Yes 11 Functionality – the basic attributes of the solution needs to be satisfy specific requirements the agencies setYes 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.Yes 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.Yes 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.Yes [1] [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.software [2] [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. 24 Action Plan What – Action/ CommitmentWho - ResponsibilityWhen - 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  TBD  Review best practices and industry standards to formulate/develop recommendations for the State procurement and RFP process  Designated Procurement Officers  Diana Lancaster  Jan Dean  TBD  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  Designated Procurement Officers  Diana Lancaster  Agency CIOs and State CIOs office  DOJ - Business Transaction Unit  December 2009  Conduct outreach to other States and Federal agencies and document their experience  See example from Gartner study  CIOC and Multi- Agency Workgroups  End-users  TBD