Saas Provider Handbook

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Saas Provider Handbook

Transcript of Saas Provider Handbook

Page 1: Saas Provider Handbook
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How to Make Your App Enterprise Ready

Enterprises are adopting more and more SaaS Applications. However many SaaS apps are not enterprise-ready; their APIs are not well documented, nor do they work easily with third party applications - either on-premise or in the cloud. SaaS applications that do not hook into existing systems, lack stickiness and can be easily replaced with another SaaS solution, increasing customer churn rates for vendors, and lowering monthly recurring revenue, impacting overall key performance indicators.

This brief how-to-guide will give you insight into key technology trends impacting Enterprise customers, and provide best practices from both a product, sales and marketing standpoint to repeatedly land and expand within these accounts.

About MuleSoft

MuleSoft provides the most widely used integration platform to connect any application, data service or API, across the cloud and on-premise continuum. Supporting billions of transactions per day, MuleSoft is used in production by global leaders in major industry verticals, including Walmart, MasterCard, Nokia, Nestlé and Honeywell, and powers integrations with leading SaaS vendors such as salesforce.com, NetSuite, Workday, Intuit and Box.

SaaS Provider Handbook:

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SaaS Provider Handbook: Introduction

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Table of contents

Trend Spotlight:

How-to guide

Understand the end-to-end business process your application supports

Top Technology Waves impacting the Enterprise

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SaaS Provider Handbook: Contents

Step 1

Step 2

Step 3

Step 4

Identify complementary third party applications

Simplify the customer buying process and user experience

Make your SaaS application “Plug and Play”

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Trend Spotlight:

Top Technology Waves impacting the Enterprise

The mega-trends of SaaS, mobile and Big Data are converging to create a massive new wave of business opportunity for Enterprises. It’s no surprise that by 2020, IDC predicts SaaS adoption to exceed $140 Billion as more mission critical applications such as CRM and ERPs are moving to the cloud. In addition, devices such as smart phones and tablets will soon outnumber traditional laptops and desktops connecting to the internet. The adoption of both SaaS and mobile devices either through IT buying centers or “shadow IT” has created a massive fragmentation of information and business process in the Enterprise. While SaaS and mobility are disruptive trends independently, what is related, and creates even more urgency for Enterprises is the emergence of open APIs.

Since 2008, open APIs have seen explosive growth in the market. From 2010 to 2011 the number of open APIs doubled from 3,000 to 6,000. Now in 2013, there are nearly 14,000 public APIs. APIs, application programing interfaces,

Connect SaaS to Win. Enterprises focus on connecting applications, devices and data silos to create a competitive advantage.

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are the core technology that enables cloud based and on-premise applications, in addition to mobile devices, to exchange information and interact with other systems.

Leveraging these technology trends Enterprises are free to not only select a best of breed application, but can more easily streamline their internal business processes to engage more closely with customers. Orchestrating real-time information sharing and process automation gives organizations the ability to differentiate their product or service from the competition unlike ever before. This connectivity creates a gap so large in delivery, even the most talented engineering teams would struggle to keep up at such a pace. Consider the airline that provides mobile check-in and mobile boarding passes, or the retailer who provides check-out through an associates mobile device. In order for each transaction to take place, the applications and devices supporting that process must share information almost instantaneously, otherwise the service fails.

Welcome to the new era of hyper-connected applications and devices. May the most connected, easy to use SaaS application win mind-share (and wallet) within the new Enterprise.

There is massive buzz around SaaS, mobile and Big Data, but the secret nobody talks about is that Enterprises can’t make any of it work without connectivity.”“Ross Mason, Founder and VP Product Strategy, MuleSoft

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SaaS Provider Handbook: Trend Spotlight

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SaaS Provider Handbook: Trend Spotlight

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Understand the end-to-end business process your application supports

Regardless of who purchases your application - Line of Business or IT- it is either the main character, or supporting cast member in your customers production.

Understanding the end-to-end business process your application supports, and how your application plays a role is key to assessing the criticality of your solution to your customer. The more ingrained you are in the business process and in the collection and storage of data, the less likely a customer will be to switch from your solution to another.

Unfortunately for many enterprises, very few SaaS providers think about their application in terms of the business processes they support, and as a result do not connect their application to complementary or neighboring apps. As a result, creating the connectivity layer - or app gap - falls into the lap of the customer. This means that your customer will be forced to manually integrate each application within the business process on their own, increasing the overall cost of your application, and slowing time to value.

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Gartner Application Integration predictions for 2016- 2018Source: Gartner Predicts 2013: Application Integration, Published: 14 November 2012

More than 50% of the cost of implementing 90% of new large systems will be spent on integration

Midsize to large companies will spend 33% more on application integrations than in 2013.

Integration of data on mobile devices will represent 20% of integration spending.

by 2016

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by 2017

by 2018

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Step 1:

SaaS Provider Handbook: Step 1

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Common CustomerBusiness Processes

Common Customer Integration Challenges

Sample business processes by application type with common integration challenges

Migrate data from legacy HR systems in batch or real-time

Synchronize data between recruiting and other ATS applications

Streamline I9 Approval Process

Synchronize employee personal and compensation information between payroll, and expense DQG�EHQH¿WV�V\VWHPV

Acquire new talent

Onboard new employees

Retain top talent

Off-board existing employees

Perform one way sync from existing on-premise document repository to cloud repositories

Create bi-directional sync between PLM, project management and CRM applications

One way synchronization between on-premise applications and mobiles devices

Sharing of information and assets between internal teams

Sharing of information and assets between customers and community members

Seamless synchronization of invoice, payment, and order details

Synchronize services across clients, providers, and core eCommerce platforms

Connect applications & systems such as Warehouse, SEO, advertising, shipment, IXO¿OPHQW��SULFLQJ�FDWDORJ�and CRM

Integrate an order management system with an external Web Service

Integrate eCommerce site, order management, CRM and ERP systems

Create an end-to-end order management process “order-to-cash”

Connect ecommerce applications and systems

Quickly onboard new partners and integrate into new shops

Extend ecommerce platform to customers, partners and suppliers

Human Resources

Employee and Customer Collaboration

Finance

Application Type

SaaS Provider Handbook: Step 1

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Application Type

Common CustomerBusiness Processes

Common Customer Integration Challenges

CRM Reach new prospects

Create closed loop follow up process for leads

Provide a single place for tracking opportunity data

Analyze pipeline to quickly identify bottlenecks in sales cycle.

Migrate data from legacy CRM systems (one time, batch or real-time)

Synchronize product catalog with ¿QDQFLDO�DSSOLFDWLRQ

Connect lead database to sales campaigns

Streamline contract signing and negotiation

Convert opportunities won to orders and invoices

Import invoice/ payment info from ¿QDQFLDOV�WR�SURYLGH�YLVLELOLW\�WR�sales

Connect direct sales CRM to renewal platforms

Gather data from marketing and CRM platforms to analyze customer buying process, time and conversion rates by stage

Identify market opportunities

Drive awareness and engagement with prospects

Build pipeline for sales

Accelerate the sales cycle

Marketing Automation

Aggregate buyer research data from multiple survey sources

Connect marketing and social media and collaboration tools

Connect google Adwords, email marketing and inbound marketing, event marketing, fundraising activity responses to Marketing Automation platform

Synchronize leads within demand generation tools with CRM systems in batch or real-time

SaaS Provider Handbook: Step 1

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Page 9: Saas Provider Handbook

Identify areas to expand your application to increase customer value

You’ve successfully developed the best in class application in your space, that is central to your customers business process. Congratulations - The order forms are likely pouring in! Now, how do you keep your customers from churning?

One of the primary ways SaaS companies provide additional value to their customers is through adding additional product functionality. This has traditionally be done by building the related features into your core platform, acquiring companies, or through partnerships with other best of breed software providers. With the emergence of SaaS, mobility and open APIs, SaaS providers now have the opportunity to also extend their business through their API.

Today we see a spectrum of companies in the SaaS Marketplace looking to capitalize on these technology trends. Companies range from niche best of breed functionality such as SurveyMonkey and HootSuite, to all in one vendors that provide functionality across a customersend to end business process, such as Salesforce.com.

Regardless if you are a niche best of breed or a all-in-one application provider, there is a connectivity gap of information and business processes between your solution and existing customers DSSOLFDWLRQV��:KR�LV�JRLQJ�WR�¿OO�WKDW�gap - the SaaS provider, their partner

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Step 2:

SaaS Provider Handbook: Step 2

ecosystem or the customer? Some of the most successful SaaS companies in the market have focused on simplifying and enabling third parties to use their API. SaaS providers that make discovery of and development to their API easy, simple and accessible to customers and partners are more likely to secure new customers, partners and retain existing clients.

Spotlight: Amazon’s Product Advertising API pioneered a new business model.

Excerpt from Forrester report: Establish Your API Design Strategy by Randy Heffner, June 11, 2013

�����������$PD]RQ�FRP�ZDV�WKH�¿UVW�FRPSDQ\��� to create widespread industry buzz and adoption for “open Web” APIs — APIs that are publicly accessible for most any developer to use. The big reversal with this API is that, rather than Amazon choosing its business partners, Amazon let its business partners choose it. This resulted in Amazon having an embedded presence on websites across the Internet. From the start, the API has been available via REST and SOAP. Amazon does not provide current usage numbers, but as early as 2003, the company stated that 85% of API calls were through its REST API. Sincethen, APIs from Facebook, Twitter, Google, and other major players have expanded their businesses and driven industry innovation with APIs”.

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Page 10: Saas Provider Handbook

Where do you fall on the SaaS provider continuum?

Market Awareness and Demand Gen: Best of Breed Vendors

Customer Lifecycle: Salesforce.com

SaaS Provider Handbook: Step 2

Not sure where to extend your application to? Leverage user surveys to assess and prioritize customer integration needs

PRO TIP

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Page 11: Saas Provider Handbook

Make your SaaS application Plug and Play

To enable third parties to use your application, you need to make your API as simple as possible. One of the biggest oversights by SaaS and API providers, is understanding that the customer QHHGV�WR�EH�JXLGHG�WR�ƬJXUH�RXW�ZKHUH�DQG�ZKHQ�\RXU�application can make an impact in their environment. What is your API capable of? What are the limitations? What is the fastest path to value for the consumer? The best way to accelerate adoption of your application and reduce barriers in time to live, is to enable easy plug and playability of your application.

Plug: Is the API of your application designed to support the business processes and use cases of your customer? Can you allow third parties to connect to your application preserving your IP while at the same time extending your business model to allow an ecosystem to be built around you?

Takeaway:�3URYLGH�D�ZHOO�GH¿QHG�$3,�ZLWK�FOHDU�DQG�VLPSOH�guidelines so it is easy for consumers of your application to easily extend it. Identify the key business processes that you support with your application and be explicitly clear in communication of this in your API documentation.

Play: Does my application provide the necessary hooks and supportability through a modern, adoptable and easy to on-board APIs that will attract and delight developers?

Takeaway: Ensure you follow best practices when publishing your API and that the necessary tools and technologies to support integration to your API are readily available.

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Step 3:

SaaS Provider Handbook: Step 3

These Enterprises are also API providers

Source: Forrester, Establish Your API Design Strategy by Randy Heffner, June 11, 2013DID YOU KNOW?

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Page 12: Saas Provider Handbook

Goal: Create a 360 view of the customer, accessible from a mobile device

Business Owner: VP of Marketing

Pharmaceutical Enterprise Customer Case Study

APIs in Action

Business Initiatives Applications Used Barrier to Success

Customer Web Portal: Drupal

CRM: Salesforce.com

Campaign Management: SAP, Marketo

Registration & Validation: Janrain, Ping Identity

Data silos, individual solutions & point-to-point integrations

Existing application set did not connect to SaaS and mobile devices

Create a 360 degree view of the customer to help increase revenues

Make information accessible globally via multiple channels: eg. Web, Social, Mobile devices

Lower costs & streamline processes

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api

api

api

api

api

api

api

api

api

api

SaaS Provider Handbook: Step 3

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Page 13: Saas Provider Handbook

Simplify the customer buying process and user experience

From the moment you engage a customer- the beginning of their buying process to the user experience within your application- having a simple, seamless experience will be critical to not only winning, but retaining customers over time.

Offer a pre-built, packaged integration options for customers

Provide customers with complex requirements a path to customization (eg. offer pre-built integration templates with access to a knowledgeable partner to assist in implementing the customized requirements)

Unlock new markets with integration as an add-on to your existing offering

Focus your resources on your applications core engineering needs, expanding intellectual property and product differentiation

Offer integration as a feature or add-on to your platform

Sell pre-built, packaged integration through your existing sales team

Provide packaged integrations that require no coding, only FRQ¿JXUDWLRQ�WR�JHW�VWDUWHG

Have the ability to quickly diagnose and troubleshoot integrations versus those related to your app

Impact top line revenue by up-selling existing customers with integration as an add-on

Provide sticky, best in class SaaS applications and mitigate risk of competitive displacements

Reduce customer onboarding efforts and support inquiries related to integrations

Business ImpactBest Practice

Product

Sales & marketing

Services & support

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Step 4:

SaaS Provider Handbook: Step 4

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Page 14: Saas Provider Handbook

Conclusion

To successfully land and expand in the Enterprise your application must have a simple, easy to use and well documented API that works with existing applications and systems.

If you are ready to engage with a SaaS integration expert, MuleSoft is here to help. MuleSoft powers integrations for leading SaaS companies such as such as salesforce.com, NetSuite, Workday, Intuit, Box and many more.

Learn more about MuleSoft’s SaaS partner program or contact us to discuss your integration needs today.

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SaaS Provider Handbook: Conclusion

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About the Authors

Sumit Sharma

Director & GM of ProgrammableWeb & APIhub, MuleSoftSumit Sharma is passionate about APIs and the power of connectivity. He brings over 10 years of cloud and enterprise integration experience to MuleSoft where he is responsible for API Solutions, including APIhub, the world’s leading API publishing and consumption platform. Prior to MuleSoft, Sumit was at Nebula, an OpenStack based IaaS private cloud system provider; and prior to that he was a leader of the Cloud practice at Deloitte where he pioneered the global cloud computing center of excellence.

Dan DiephouseCloudHub Product Management, MuleSoftDan Diephouse helps companies connect everything together: cloud services, applications, databases, mobile devices - he’ll even help connect your toaster or refrigerator. He brings over 12 years of experience in integration and middleware to his role as product manager of Mulesoft’s integration platform as a service, CloudHub. Previously, as a software architect, he co-founded Apache CXF, a popular open source web services framework, helped shape Mule, the most popular open source ESB, and consulted with many of the world’s top companies around their integration problems.

Katie BurtonPartner Marketing, MuleSoftKatie loves SaaS and loves the channel. She brings over 7 years experience in enterprise software and SaaS marketing to MuleSoft where she manages the recruitment and enablement of leading SaaS provider and System Integrator partnerships. Prior to joining MuleSoft Katie held various roles in enterprise software lead generation, campaign marketing, solution marketing and product marketing. Katie is an expert in aligning marketing activities to customer buying process including but not limited to sales enablement, marketing programs and product positioning.

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SaaS Provider Handbook: About the Authors

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