arch-8: saas case study: re-architecting to take advantage of the saas business model colleen smith...

ARCH-8: SaaS Case Study: Re-architecting to take Advantage of the SaaS Business Model

Colleen SmithSoftware as a Service, Progress Software

Terry DaleyCEO, AspSoftware

© 2007 Progress Software Corporation2 ARCH-8: SaaS Case Study

SaaS Themes

Innovation is still the key to growth – but it has broader implications than in the past…

The transformative businesses are going to operate in and monetize the long tail…

Companies that succeed will create applications that learn from their users…

Use an architecture of collaboration to build an advantage in the richness of shared data…


The Long Tail:

The Long Tail is a potential market and, as the examples illustrate, successfully tapping in to that long tail market is often enabled by the distribution and sales channel opportunities the Internet creates.

Anderson argued that products that

are in low demand or have low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers, if the distribution channel is large enough. • Examples include the online

retailer Amazon.com and the online video rental service Netflix

http://en.wikipedia.org/wiki/Amazon.com

http://en.wikipedia.org/wiki/Netflix


3 Keys to SaaS Providers’ Successful Growth

Operational/

Business

Readiness

Target Market

Acceptance

Product

Readiness

OpportunityOpportunityWillingnessWillingness

Ease of upgradesEase of upgradesPersonalizationPersonalization

CostsCosts

Financial Stability

Financial Stability


SaaS/On Demand Changes the Rules

Design for Capabilities, all-inclusive

Portability, Multi-platform 1-3 year application

lifecycle Product/Feature/Function

focus New customer acquisition Single Customer

Design for Intuitiveness, option-based

Reliability, security, scalability 3-6 month application

lifecycle Business Process/Service

focus End-user/service offering

expansion Multi-Tenancy models Build to Integrate Build to be changeable

OLD RULES NEW RULES (SaaS)


Evolving Toward a SaaS Ecosystem

Scope of Business Services

Tec

hn

olo

gy

& I

nte

gra

tio

n

Application Service Provider

Business Service Provider/

Software onDemand

Collaborative Service Provider

Hosted Application or SaaS

SaaS plus Business Services

SaaS Ecosystem(Partners)

Web-Accessible,Extracts or

Point-to-point

Multi-tenancy,

Point-to-pointor Web

Services

Hybrid-Tenancy,

Web Servicesor ESB


SaaS Ecosystems

A SaaS vertical Ecosystem Allows for

Better Business Service Integration

Key Differences

Horizontal AppStack

(e.g., Payroll, HR)

VerticalApp A

VerticalApp B

Vertical SaaS Delivery

SaaS Integration Platform (SIP)

Info orContentSvc A

Vs.

Application

Best-of-BreedSaaS Provider

Application


Application C



SaaS provider2

End User Customer

App2App1On-premise

apps

ServiceA (app)

SaaS provider3

ServiceC (integr)

End User Customer

App2App1On-premise

apps

SaaS provider1

ServiceA (app) ServiceB (app)

SaaS

SaaS Ecosystem

Integrated SaaS Ecosystem Scenario


SaaS provider2

End User Customer

ServiceA (app)

SaaS provider3

ServiceC (integr)

End User Customer

SaaS provider1

ServiceA (app) ServiceB (app)

SaaS

SaaS Ecosystem1

SaaS provider5

ServiceD

SaaS

SaaSSaaS Ecosystem2

The ultimate SaaS world

Multiple SaaS Ecosystems Scenario


Applying innovative technology and services to differentiate applications from the competition

Innovation and Growth Opportunities

Participation in an ecosystem that increases customer value

Development of a business model with focus on new market/growth opportunities

Success Requires all 3 of the following:

1

2

3

SaaS Case StudySaaS Case Study

Terry DaleyCEO, AspSoftware


Agenda

The Wide World of Waste services• The uniqueness of the industry and its idiosyncrasies• Waste Application Areas and leading edge extensions

Thinking Outside the box A Journey

• Progress V8/9 UI begins to look dated / extensive functionality• Outlook – look and feel – simplify for mom & pop entry level• The struggle to mesh with others (look-alikes?)• SaaS Opportunities – Where, What & How

Demonstration• Integration with Salesforce.com – affordance by Stylesheets & Ajax

– Can you tell which is which?

• Integration with Google Maps & OnBoard Systems– Truck 54 where are you?

Lessons Learned Open Discussion


Waste Industry Segments


Where’s Wally have to Wander? (industry idiosyncrasies)


Waste Software Application Areas


IDC Industry Analyst advice (@ exchange 2006):

Build for Change Build for Collaboration/Co-existence

• ESB/Adaptors/Messaging/APIs Loosely Coupled

• Only take services you want Highly Configurable (customisable) SaaS Software As A Service

• example: Salesforce.com The Long Tail

• – Niche Focus • – Targeted Marketing • – Viral Marketing


How do we expand our view of the future?

Ability to add-on to in-house solutions

Ability to use in other Geographic regions• Google-maps USA …

Ability to apply to other transport solutions• Package Delivery

Runs• Bus Routes• Equipment hire• etc …


An ISV story … (travelogue)

Sub-Title: • How we re-architected our application for the SaaS Business model

The Background to Business changes• Architectural components segregation – a different way of thinking

– Build to integrate, Build to change/customise (the long tail)– Web access – (what services could I segregate)– Re-architect for Web Access and for multi-tenancy– New metrics to measure – New money terms and cash-flow to manage.

• Demonstration of WastEdge Services: – WasteRep; WasteBinHire; WasteScheduler; WasteDispatch; – WasteMobile; WasteMaps; WasteKPIs; …

• Market ecosystems that could offer potential deployment options. • Thinking further a field …


Prior Attempts at Other App Marriage?

Integration with Open Accounts• Use of DBI tree menus for same look & feel

• API to receive financials inputs

• API to allow drill down from accounts to ops


The journey through MS Look & Feel – (thick GUI)


Old GUI versus New GUI


To the outer edge of different waste businesses … and beyond, to customer self service


Technology Convergence

Web Services & Internet Availability/Reliability Faster reliable GPRS / GPS Data Communications New cheaper MDTs & PDAs for data display/capture


Paper vs. Paperless Regular Lift Processes


The value of pushing out to the edge of the organisation?

Alternative:Web based Bookings forCustomerSelf service


New Web booking/payment/enquiry facilities

New security to validate customer’s customer-users

Password re-issues Direct Debit facilities email integration of job

confirmation as electronic invoice receipt

sms or email reminders for when pickup are due

PDF/XML invoices

(the new EDI?)


Emergence of Richer Web Interfaces

Web subscription project management tools Basecamp To-Do list management Ajax – ruby on rails richer customisable interface

Google – pay per click services Web based Timesheet Management systems Shared web calendar systems Sales Contact Management systems

…..A need to have remote branch and home workers admin integrated without needing Citrix prompts the search for more web share utilities and tools


New WastEdge.com Branding for SaaS Apps


Decision to Simplify and Refocus Product Segments/Services


WastEdge Appexchange Add-ons


Salesforce.com Extensions & Integration


Google Maps Integration

(we’ve added a custom link to the Google API call)(there are various display options in the Google API)


WastEdge Demonstration – selected services

Composite Applications within web framework Multiple services suppliers (mash-ups)

• Progress Software

• Google

• Adobe

• Business Objects

Example of Progress/Google-maps integration


Demonstration

Demonstration


Weighing up the lessons we’ve learned so far…

Allowing for multi-tenancy • Company/user access file

structures• Data display restrictions

Build for configurability• User column sequences• Ability to turn some screen

segments off • Allow for data field label change• Allow for several user definable

spare data fields Easy to manage metrics Demo environment Monitor usage and collect payments

and deactivate when unpaid


Best Practices…..for Changing Business Model

Move away from “traditional” thinking:

Instead of delivering an “application” – think of yourself as delivering a business service• Define the “business value” of the service

– Value of self service web account enquiries– Value of self service bookings– Value of seeing jobs on the map for planning– Value of letting the customer see where the truck is?

• Look for new market “niche” business capabilities for you to offer as services


The AppExchange Marketplace – Advertising


Recommended Reading:

Create Uncontested market space

Break the value cost trade-off

Pursue Differentiation AND low cost

Make the competition irrelevant

Seek value innovation• Eliminate, Raise• Reduce, Create


Open

Discussion


Thank you foryour time

arch-8: saas case study: re-architecting to take advantage of the saas business model colleen smith...

Documents

progress software corporation

saas themesinnovation

saas case studyterry

long tail market

boxa journey progress

long tailcompanies

low demand

distribution channel