{"id":10005,"date":"2022-02-08T08:30:04","date_gmt":"2022-02-08T16:30:04","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=10005"},"modified":"2022-02-08T08:31:05","modified_gmt":"2022-02-08T16:31:05","slug":"navigating-the-uncertainties-around-saas-adoption","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2022\/02\/navigating-the-uncertainties-around-saas-adoption","title":{"rendered":"Navigating the Uncertainties Around SaaS Adoption"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10006&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Are you dipping your toes into Software-as-a-Service (SaaS)? Good! That\u2019s a start, but what you really want to do is jump into the deep end. The water is fine. In fact, it\u2019s heavenly.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recent peer-reviewed academic research surveyed 554 organizations with varying levels of SaaS deployed and examined the relationship between different levels of SaaS adoption and business agility. The research found that the more SaaS in the organization, the better the agility. Agility was measured by asking respondents whether SaaS helped them make decisions faster and whether SaaS helped them react faster to market pressure. The agility contributed to higher revenues, lower costs and higher productivity. But why?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Empirical case work demonstrated that <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2020\/12\/saas-erp-the-case-for-moving-to-the-cloud\" rel=\"noopener\"><span style=\"font-weight: 400;\">SaaS in the enterprise<\/span><\/a><span style=\"font-weight: 400;\"> allowed managers to understand competitive actions faster. The real-time, ubiquitous nature of SaaS supports the distribution of information in a more direct way. Managers can pull their own reports from anywhere, using a single source of corporate data stored in the cloud, and get the information they need to make decisions. No more emailing spreadsheets from one management layer to the next, sanitizing results along the way until no one knows what\u2019s going on. You can\u2019t make the right decisions when you don\u2019t have the right data. What\u2019s holding you back? There were a number of objections to SaaS that were found in the research and one of the objections was vendor lock-in. Let\u2019s look at the alternatives to vendor lock-in.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Alternatives to SaaS Vendor Lock-in<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">How about developing your own application? Then you would own it and you wouldn\u2019t have to pay the monthly fees, right? You wouldn\u2019t be locked in then. What about building your own car, or building your own electricity grid? SaaS and <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/cloud-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">Cloud<\/span><\/a><span style=\"font-weight: 400;\"> have been called the fifth utility. So why build something that is readily available and affordable for anyone, even your biggest competitor? Let\u2019s consider that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What if you build your own application, and your biggest competitor buys a SaaS application to do the same thing? Depending on the complexity, your application could take 6 months to 5 years to develop and roll out while your competitor has the capability you are building available immediately in the cloud, everywhere, for everyone. Their managers are making decisions using real-time data.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How about a real-life example?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I worked with an Automotive OEM, who had deployed SaaS in a division for several years. A marketing manager in the same division noticed that his business was being lost but he didn\u2019t know why. He went to IT to see if they could build an application to help him figure it out. They said they could, but it was going to take about a year and cost over $100K. The manager didn\u2019t have the time or the money. So, he went to the administrator of the SaaS system and asked if she had any ideas. She put a couple questions into the Dealer Profile and over the next few weeks the field reps asked the dealers what was going on and put their responses into the system. The marketing manager pulled his reports in real time and by the third week he could see that a competitor had launched a major initiative against their most profitable business. They initiated a counter program and mitigated the issue. Just like that. The manager had the information he needed in time to fix the problem. Imagine if he had waited for IT to build him his application? How many accounts would they have lost? How many accounts are you losing while you are waiting?<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Can SaaS Enable Business Agility and Security?<\/span><\/h2>\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2018\/07\/delivering-agility-qad-enterprise-platform\" rel=\"noopener\"><span style=\"font-weight: 400;\">Agility<\/span><\/a><span style=\"font-weight: 400;\"> means fluidity, movement and speed. To be fluid, fast and effective, you have to have the right information at the right time. SaaS enables that with continuously up-to-date applications that meet or exceed (if they want to be the leader and make the most money) the needs of the market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what about security?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The aforementioned academic research examined a number of obstacles including security. While security was the number one risk back in the early literature (2008 \u2013 2014), as research continued SaaS and security became an advantage. Scholars determined that SaaS companies had much higher risks if their security strategy failed and so took significant measures to ensure their software offerings were safe for their customers. In contrast, it was further noted that non-technology businesses would have a very difficult time keeping up with the ever-changing challenges of maintaining a hack-proof infrastructure. Do you think your people have the skills to match the cyber threats out there today? I wouldn\u2019t bet my business on it.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Focus on Your Business\u2019 Core Competency<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Lastly, we need to appreciate the core competency of our business, of our people. Where do we spend the big bucks to get the best people? Where do we skimp, hoping to squeak by? Be honest. Empirical work by this researcher found that IT wages at non-technology companies were far below those of technology companies, in some cases a fraction. So, the IT geniuses are going to go where the money is, you can\u2019t blame them for that decision. Where does that leave you? Don\u2019t be intimidated by IT candidates that can spew the latest buzz-words on the threats in cybersecurity. There are a ton, and knowing the words doesn\u2019t mean you understand and can implement a strategy that provides security now and tomorrow and the next day.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Focus on your core competency, make your business great. Leave the non-core work to companies that make that work their core competency. It is a unique time to be in business, take advantage of the resources that are readily available.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I\u2019ll be back to tell you more about SaaS advantages in my next blog.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10006&#8243; img_size=&#8221;full&#8221;][vc_column_text]Are you dipping your toes into Software-as-a-Service (SaaS)? Good! That\u2019s a start, but what you really want to do is jump into the deep end. The water is fine. In fact, it\u2019s heavenly.\u00a0 Recent peer-reviewed academic research surveyed 554 organizations with varying levels of SaaS deployed and examined the relationship between different levels [&hellip;]<\/p>\n","protected":false},"author":118,"featured_media":10006,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,197],"tags":[1059,2015,211,61,2017,305,17,1044,578,2014,1661,2016],"class_list":["post-10005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-innovation-and-technology","tag-agility","tag-business-agility","tag-cloud","tag-cloud-computing","tag-core-competency","tag-cybersecurity","tag-enterprise-software","tag-real-time-data","tag-saas","tag-saas-adoption","tag-software-as-a-service","tag-vendor-lock-in"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - 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Recchia","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2022\/02\/cristina-recchia_avatar-96x96.jpg","url":"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2022\/02\/cristina-recchia_avatar-96x96.jpg","contentUrl":"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2022\/02\/cristina-recchia_avatar-96x96.jpg","caption":"Cristina Recchia"},"description":"Cristina Recchia, MBA, PhD, has spent 30 years in the technology industry with companies like IBM, Sun Microsystems, and Salesforce.com. Her work led her to pursue a PhD in Industrial Engineering to further understand the relationship between business and IT and how SaaS fits into that relationship. Her peer-reviewed research supports that SaaS does indeed improve firm performance. Cristina\u2019s background is the bridge between IT and business that corporate leaders are constantly trying to understand and improve upon.","url":"https:\/\/www.qad.com\/blog\/author\/cristina-recchia"}]}},"_links":{"self":[{"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/posts\/10005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/users\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/comments?post=10005"}],"version-history":[{"count":2,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/posts\/10005\/revisions"}],"predecessor-version":[{"id":10008,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/posts\/10005\/revisions\/10008"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/media\/10006"}],"wp:attachment":[{"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/media?parent=10005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/categories?post=10005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/tags?post=10005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}