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SaaS Ecosystem - turn it on
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Transcript of SaaS Ecosystem - turn it on
the saas ecosystem. turn it on.
Peter J Cooper CEO Copyright Saasu 2008
CeBIT Sydney 2008 Saasu on the SaaS Ecosystem
By Peter J Cooper | CEO
Newsflash: 2008 CeBIT Award Winner
What you will get today
What? Who? Landscape
Why? How? Framework
Next? Future Insight
it doesn't matter
In the business of tech
small < 50 people
industry
geography(need net)
Using tech for your business
large >500 people
function
(sales, finance, marketing, design, manufacturing)
nicholasgcarr.com
- HBR IT doesn't matter - the big switch
it does matterProductivity
Differentiation
Margin
Cost Control (Usually)
Quality (Usually)
Risk (Usually)And... Fun. People. Living. Satisfaction.
Retention. Momentum. Values. Intangibles... see ted.com
you can deliver what mattersin different ways nowSoftware as a Service (SaaS)
Also known as
PaaSXaaSSaSOn Demandblah
Today: limited time but broadest definition so we will focus on examples.
saasu.com/blog
SaaS and Social get commercial scalecomcast buys plaxo $150-170m disney buys club penguin $700mmicrosoft invests in facebook $240m implied valuation $15bnokia buys navteq $8b cisco buys webex $3.2bsap buys businessobjects for $6.8b intuit buys homestead $170msony buys gracenote for $260m aol buys bebo $850mtaylor nelson sofres buys compete.com for $75m+$75mmicrosoft buys yahoo for ~$47b google buys postini $650mprivate equity buys ancestry.com for $300mprivate equity buys getty images/istockphoto.com for $2.4byahoo buys maven for $160m ibm buys xiv for $350maol buys quigo for $340m google buys jaiku (i can't believe its not twitter)
web2innovations.com
SaaS now serious (and social)Market Caps iPhone Web Apps Google Fills Gaps
ASX < CRM1600+ Apps,10% business
salesforce.comappexchange700 apps90%+ business
ApproachingPrivate Banking
so what is it?specific narrow new tools
software substitute
a new age
ease of software
features of software
confidence of software
plus extra ingredient - distinct advantages of saas(just as we expected them from new upgrades in software)
I can't believe it's not software
Why? Innovation example: fonts
What? Landscape - SaaS ecosystem
Transformation in economiesDisruptive innovation claytonchristensen.comInterdependence networkCost reduction opportunityNew models (and risks)People
Connect. Automate. Simplify
Who? Landscape - Are you ready?
You
Connected alwaysExternally awareChannelsWant growthNot just technologyInterdependencesaas-y
Solution Options
Mesh SaaSOne SaaSPieces
Why? Innovation ++ example:
Dell Idea Storm
Who? Landscape - The Players
PlatformsVerticalsHorizontalsCollections
Also...DirectoriesOthers (3 or 4 browsers, 3+ operating systems)
so what are the distinct saas advantages?one view is
turn it on
automate
connect
simplify
your own solution, your own community, your own ecosystem
AutomateAlways try and kill off the extremely manual tasks first.
Even better, kill off the boring bits so people enjoy their job.
Connect
What is your sweet spot?
For everything else connect to the best.
SimplifyAttack the worst exception. Repeat.
What's slowing you down?
Be exceptions based. Automate everything you can with systems and procedures.
Saasu.com | the web finance engine is obviously a good start.
Systems simplicityReduce the number of systems you use.Adopt more online services. Reduce the complexity and duplication of tasks....The All SaaS Enterprise (ASE) is the way of the future..
All SaaS Enterprises (ASE's) are productive.
Your infrastructure and outsource capability is very high in an ASE. Backups, upgrades, data storage and security are cheap. e.g you can get
all your flickr photos on a disk for about $20. How can you possibly improve on that by doing backups yourself?
ASE means security and big iron
(or at least lots of well managed small iron).
Is your technology big (scale), secure and well
managed?
SaaS has multiple measures of security and
backups that are difficult to achieve in a smaller scale
DIY approach.Often these risks are
hidden in a non-ASE world until it is too late.
Service is salessell more to less
more to moremore for lessless for more
Turn what is normally a cost into a benefit and continue to standardise service through procedure and automation.
Service is a super opportunity to:
sell, cross-sell, upselllearnautomate helpmake customers happyretainprice based on value to buyer by knowing more
Exploit unused time buckets.A simple thing like giving staff mobile web access might create 20 minutes a day where it didn't exist. Reading email or blogs on a train trip as an example.Keep valuing your time!
Good operations. Command and control.Control helps create predictable results. Don't stifle the creativity. We give creativity it's time and place but within limits. It's not about clocking on or off but it is about getting projects done and that means coal face work - no two ways about it. Don't confuse web with waffle.
Exercising cheap or free options.Outsourcing can be so cheap that it is nearly a free option. E.g. extremely cheap service plans from Apple are very 'insurance like'. Potentially capping cost for a small premium.
Compounding productivity magic.Small amounts of automation or productivity today result in a large Future Value impact on your business. Better still, many small gains over time create compounding efficiency.
Perhaps this is why some seem to achieve the seemingly impossible with limited resources and time.
Minimise transition and duplication costs.Moving between tasks has transition costs. Minutes saved per day lead to many hours saved per year. The cumulative effect.
TCO is old school.
What's the Future Value Impact of your investment on your companies equity value? The cultural shifts, the productivity impact, the automation, they must all be factored into the ROI
TPOTime is money, it faces market forces. Saasu built an efficient, low cost of sales business by avoiding jamming too much development into a short time bucket. Fast development means paying a premium price.
TimePriceOpportunity
Rule out, don't rule in.It's too easy to load a project e.g. for Saasu it is a release cycle. We tend to rule out based on lack of requests. We also rule out features that take us back into our competitors arena - we avoid the red ocean. Read the book.
Key Productivity DriverPassion
Don't let it only be about the money. It also has to be an authentic love of exploration and creation. Most of all it needs to be about the game. Playing it
like you are on the field, not watching from the stands.
Why? Profile
SaaS vs Software
Investment+Time to market+Continuity
Why? Innovation at saasu
Democracy - Ideas exchange via salesforce.com and othersPSN Integration (Professional & Social Network)Connected Transaction AutomationTransaction Cross DockingCustomer Self Service & Partner Relationship ManagementNiche SaaS SpecialistsGlobal but simplified
Initial time to market profile
SaaS vs Software
Continuous innovation profile
SaaS vs Software
Why? Innovation example: franchising
Why? Innovation example: time
Why? Innovation example: rostering
How? Central
FinancePre-saleUp-sellServiceStrategy/KMInnovationLife cycle mgtProduct DevMarketing/BrandPermission/IntrusionPeople (dev/retain/manage)
Self ServicePartners/ResellersEngagementContinuous improvementPrice/costPlacement/distribution/time poor/cash rich/vice-versaMaintenancePhysical/virtual productChannelsVIP: NOW VS NEXT
Some Players
Platforms e.g. google, force, s3, coghead, bungeelabs,
Tech Centric Database Logic User facing Documents & Rich MediaVerticalsHorizontalsCollections
How? Players
PlatformsVerticals Biz Centric Function e.g. saasu.com and netsuite in finance, salesforce.com in sales and service
Industry e.g. rosterlive in workforce mgt
Business size or stage e.g. 37 signals
GeographyHorizontalsCollections
Players
PlatformsVerticalsHorizontals Biz Centric e.g. rosterlive
Integrated e.g. saasu
Specialist e.g. 37 signals suite
Collections
Players
PlatformsVerticalsHorizontalsCollections Mix of above Usually target on size e.g. zoho
Integrated pack value proposition e.g. google apps
How/Next? Risks
Connection
Digital Brown Outs (Impact of video) SaaS Ecosystem Standards Wars Googolopoly Community Opt Out
Operational
Next? PredictionsBusiness crossing into personalBiz is SaaS Tending the garden Content pass it onSaaS standards warsSaaS bay compatibility drives winnersRetail first
How? Big 3 ApproachPlan to completion before you start (at least at a high level)
Use SaaS to manage the project (learn, develop culture, see benefits)
Minimise (customisation, sources of the truth, vendors, connectors, power users)
Also...Inbuilt Connectors/ APIs are GREATGive preference to SaaS vendors with APIs they get you out of a lot of trouble laterMinimise number of vendors but balance with innovation/risk.Don't be afraid to get them competing especially if the business units are relatively independent.
Peter J Cooper
cebit: s45
twitter: pc0web: saasu.com
blog: saasu.com/blogpersonal: peterjcooper.com
linkedin: linkedin.com/in/peterjcooper
Copyright 2008 Saasu Pty Ltd1st Floor, 111 Elizabeth St Sydney, Australia 2000
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End
Appendix
Speaker notes/reference material, not for main presentation.
Connections
Audience Participation... Intro something like thisHi I'm Adam the Architect from Adelaide, I'm at CeBIT looking to accelerate my business .
Birds of a feather Geo Biz tech Functional Life stage I/we should be connected to the five I should be using SaaS