Have your cake and eat it: Build unique solutions on common platforms

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Have your cake and eat itBuild unique solutions
on common platforms
Jonathan Vaughan
Managing Partner
jvaughan_at_newdemand.com
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Typical enterprise application architecture
Computers Networks Applications Information
Archetypal business process the form
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Enterprise application issues

• Complexity burden
• Business models change faster than software
• Business applications need process and data
  integration
• Legacy barnacle build up
• Internal application limitations
• One shot development process
• Hand crafted customization
• ERP package limitations
• Mass customization costs
• On-site platform integration and support
  requirements

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Wikipedia SaaS On Demand enterprise
applications

• Network-based access to, and management of,
  commercially available (i.e., not custom)
  software
• Activities that are managed from central
  locations rather than at each customer's site,
  enabling customers to access applications
  remotely via the Web
• Application delivery that typically is closer to
  a one-to-many model (single instance,
  multi-tenant architecture) than to a one-to-one
  model, including architecture, pricing,
  partnering, and management characteristics

Strengths Location, Time, and Platform
independence
Concerns Data access, Security, Performance,
Support, Application fit
Weaknesses Browser interface, Real Time
capabilities, Legacy integration
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Enterprise application implementation barriers
All characteristics of traditional systems
implementations
Long Time Frames
Historically major internal systems projects have
greater than 50 failure rates
lt3 month implementations
Large Organizational Impact
Packaged ERP systems typically cost 3 - 4 times
the license cost to implement
Flexible data sharing
Major Process Changes
The consumer web succeeds by reversing these
factors (eBay, Google, etc.)
Multi-phase delivery
High Up Front Costs
The On Demand Service model also reverses these
factors
Predictable variable costs
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End user application adoption factors
Easy to use
Web GUIConsistent Graphical User Interface can
be learned quickly
Immediate benefits
Active information Dashboards show the value of
information and track key metric
Organizational support
Business driven roll out in accordance with
organizational priorities
Maintainable customization
Evolution Enhanced services support continued
innovation
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On Demand - a new enterprise application
environment
Nautilus Expansion over time
Cornucopia The horn of plenty
On Demand suppliers regularly Upgrade
infrastructure Increase capacity Improve
functionality Extend partner networks
On Demand solutions provide Best practice
building blocks High availability Ubiquitous
access Business alignment Integrated active
information
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Traditional software adoption curve
Product Development
Market Development
Product Decline
Cost
Impact of obsolescence
Early Adopters
Pioneers
Late Adopters
Mainstream
Time
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Hidden costs of traditional on-site technology

• Integration
• Spaghetti architectures
• Deployment
• Vendor driven upgrade cycles
• Change management
• Y2K scenario
• Business process redesign
• Timeliness of systems delivery
• Infrastructure support
• Budget iceberg
• Technology availability
• Pioneer syndrome

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On Demand software adoption curve
Product Development
Market Development
Product Evolution
Relative value continues to improve
Early Adopters
Cost
Late Adopters
Pioneers
Mainstream
Time
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CRM - Public Sector starting point

• Public Sector Traditional CRM Examples
• Marketing and Public Relations
• Fundraising
• Business Development
• Public Opinion Surveys

Common CRM Characteristics

• Small groups of specialized users
• Limited systems integration
• Automating semi-manual processes
• High value information
• Small to medium scope systems
• Customer management characteristics

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But needs go well beyond CRM

• Public Sector Beyond CRM Examples
• Customer Service
• Quality Assurance
• Incident Management
• Campaign Management
• Information Exchange
• Regulatory Compliance

Varied Non-CRM Characteristics

• Users frequently use multiple systems
• Systems integration is required for success
• Systems may be a component in a larger process
• Emphasis on process controls and tracking

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Public Sector signs of success

• Implementing On Demand solutions
• A strong foundation for business processing
• Well honed core applications
• Wide application customization within a common
  shared platform
• Partner ecosystem
• On Demand results
• Revolution is followed by evolution - under
  business control
• Implementable prototyping changes the development
  process
• IS legacy barriers to change are overcome
• Actionable information is visible throughout the
  organization
• Low risk, high gain excellent Return on
  Innovation

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Customization of On Demand applications

• Customization Cons
• Implementation time
• Support cost
• Maintenance complexity
• Limit advantages of common solutions

• Customization Pros
• Implementation politics
• Enterprise Integration
• End user productivity
• Unique services

• Key On Demand Customization Requirements
• Meta Customization upgrade transparency
• Open API well defined interface points
• Easy to use administrator tools

Not just enterprise integration any more
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On Demand integration challenges

• Data Integration internal records
• Transaction Integration internal users
• Application Integration internal/external
  users
• Process Integration external activity
• Information Integration external data
• Knowledge Integration context driven
  internal/external information and activity

ETL / Data Warehouse
SOAP / EAI
Web Portals / Services
Messaging / Mash Ups
Service Providers
Enhanced collaboration
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On Demand accelerates innovation

• Architectural framework
• Standardized, scalable, tested
• Supports rapid iterative deployments
• The benefits of new technology are shared with
  all subscribers
• Vendors are tackling key inter / intra
  organization challenges
• Identity
• Security
• Change Management
• Resource Management
• Performance Management

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On Demand considerations

• Review SaaS vendors / solutions
• Leverage standard application meta-data
• Use a Service Oriented Architecture (SOA) -
  Loosely coupled data and process integration
• Align cost models with business value
• Recognize evolving customer expectations
• Manage IT Transition
• Central data center vs distributed computing
• Internal apps vs ERP
• Internal staff vs Outsourcing

Simple Rapid Application Deployment