A study by Blissfully, a cloud solutions company, showed that spending on SaaS service subscriptions has increased almost 20 times in the last five years. This shows that, considering the cost reduction and flexibility, the use of this model tends to grow even more in the near future.
When deciding to implement a SaaS (Software as a Service) solution for the purchasing sector, it is important to understand that the company does not choose a server, storage type or operating system, but instead obtains an eProcurement or Supply Chain Management application. However, it is possible to choose specific configurations, such as forms, screens, etc.
It is also necessary to analyze how the cloud solution integrates with other internal or third-party solutions that the company already uses, such as ERP or CRM. Furthermore, it is important to remember that any cloud service depends on a good internet connection to work. And, as if all this were not enough, it is necessary to research the solutions offered by the various providers. After all, a solution that works perfectly for company X may not be ideal for company Y.
This information may seem obvious, but many managers, less familiar with technology, really don't know how things work.
What to consider before signing a contract with a provider?
- The first thing to do is to question whether or not the solution solves a business need. To do this, it is imperative to conduct a comprehensive study to identify the needs that can benefit from a SaaS solution. Many projects fail before they even begin due to failure to clearly define objectives.
- Technology is not exclusive to the IT area, so involving all stakeholders helps to ensure a high level of acceptance and adoption of the solution.
- There are two approaches to implementing a SaaS solution: waterfall and agile. Waterfall is a more linear process, while agile is more interactive. The agile approach is more suitable for SaaS because it allows for faster gains. In the event of a failure, it is possible to quickly change the project, however there is a risk that the objective, costs and deadlines are not clear. Therefore, choosing one or the other approach needs to be evaluated beforehand.
- You can’t ignore potential issues with implementing your solution, so it’s a good practice to ask for a list of existing customers to assess the vendor’s customer service, ease of doing business, backup and incident plans, and vendor experience. The vendor should implement a “minimum viable product” (MVP) based on the customer’s needs.
- The SLA should be business-oriented. When analyzing an SLA contract, it is necessary to pay attention to some points:- The SLA should indicate each of the agreed indicators
– The SLA must ensure the supplier’s liability during downtime
– The SLA must state the remuneration policies in case of failure to meet targets - Once the MVP is up and running – typically with around 70% of the features available – it is important to review and analyze what users think of the solution and what is missing and needs to be implemented. In agile, this is called a sprint and a series of sprints may be necessary until the solution is 100% up and running.
What are the benefits for the purchasing department?
The main reason for migrating to a cloud solution is to reduce costs. But it is not only in saving money that a SaaS solution stands out. The possibility of being able to test the solution before purchasing, having a scalable solution that grows with the business, and that offers greater security for information, as much as a local installation, are other highlights.
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