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Sourcing Lifecycle for Software as a Service (SAAS) Implementation Shell Case

Santy, S. (2010) Sourcing Lifecycle for Software as a Service (SAAS) Implementation Shell Case.

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Abstract:Software as a Service (SaaS) is one of sourcing models available in the market for companies to outsource its IT services. It has emerged to become an accepted mainstream concept in the last few years. A key benefit of this sourcing model is that, by careful engineering, it is possible to leverage economy of scale to reduce total cost of ownership (TCO) relative to on-premises solutions. Its promises of lower TCO and ―plug and play‖ implementation have tease companies to implement SaaS, replacing on-premises solutions. Shell also has seen this emerging sourcing model as an opportunity for its IT strategy. Despite all the benefits it promises, SaaS is not applicable to all types of application. Shell does not have a clear definition yet which types of application can be replaced by SaaS and which ones should remain on-premise. More and more application in Shell will be replaced by SaaS, but there is not yet a clear guideline on how to implement SaaS. Shell is looking for a framework that will guide them through the whole cycle of a SaaS service, from the starting phase of before the service has been defined until the ending of the service. In this thesis, we define a generic sourcing lifecycle that Shell can follow to ensure a successful implementation of SaaS type application in Shell. To this end we conducted an overview of theories and practical literature, designed a Sourcing lifecycle for SaaS implementations, validated this in a real project within HR IT, and fine-tuned the lifecycle so that it fits in the Shell Integrated Support Model. From the guideline provided through this research, companies (especially Shell) that are interested in implementing SaaS will be guided throughout the whole implementation cycle starting before when they decide to choose SaaS until the stage when they decide to move from SaaS model to another model or when they move to another SaaS company Recommendations To ensure a successful implementation of SaaS within Shell, we recommend Shell to enforce these 8 recommendations: 1. Make sure whether you are really sure you need SaaS. Business should know what they really need strategically, is it something standard in a non-critical process or something unique. 2. Start change management in the early stage Shell may have tendency to choose gold plated solutions. When implementing SaaS, make sure all stakeholders are aware on the impacts it will bring. 3. Perform Business Impact Assessment (BIA1) before any decision making. The SaaS model is not always the right answer to outsource an application depending on the risk of the application itself. BIA should be part of the input used in the decision making process to go for SaaS or not. 1) BIA: Standard method to assess the consequences from the loss of availability, integrity, confidentiality and/or regulatory compliance of an information asset. Sourcing Lifecycle for Software as a Service (SAAS) Implementation Unrestricted Page 4 of 93 August, 2010 4. SaaS Supplier needs to comply with the compliance items defined by Shell Compliance is a really important factor in Shell. Therefore any selected SaaS supplier should comply with the compliance items defined for a typical SaaS application. 5. Project needs to engage with BAM and IRM in gathering requirements for RFP Both functional and non functional requirement should be incorporated in the RFP, therefore Project, Bam and IRM should collaborate in defining the requirements. This action will ensure that the supplier is qualified from the business perspective and also IT perspective 6. Execute Threat Vulnerability Assessment (TVA1) for the most potential supplier The business needs to choose to accept, transfer or remediate the risk resulted from the TVA. The decision from the business will then drive the decision to choose that certain supplier or not 7. Ensure that the key clauses for SaaS are included in the contractual agreements. SaaS is a black box model. Shell can only control the supplier through the contract, therefore Shell need to make sure that all the needed clauses are included. 8. Any enhancement proposal is voiced only through the user community. By proposing the enhancement through the user community, Shell will avoid the possibility to abuse SaaS into an ASP. Also it will get the benefit of getting free additional functionalities, since any enhancements will be already included in the service fee.
Item Type:Essay (Master)
Clients:
Shell, Global Function IT – HR IT
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Information Technology MSc (60025)
Link to this item:https://purl.utwente.nl/essays/59924
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