Subscribing to a new application shouldn’t be taken lightly. Often these innovative solutions are integral to how your organization will operate, from internal team collaboration to how you engage with external stakeholders.
Given their importance, it’s unfortunate that a large percentage of digital transformation initiatives which rely on said SaaS applications fail (i.e. poor implementation, ill-planned/supported change management, little/no ROI, unhappy users/stakeholders etc.). Examples of this are prevalent in large corporations, but still provide important lessons for organizations of all sizes.
With that, be sure to deeply consider the following key activities before jumping into that next SaaS purchase.
- Have you created a very clear business case that explains the problem(s) being faced and the impact they are having on the organization (i.e. financially, perceptionally, increased risk etc.)? This is the first and most important step. It should be as thorough as possible, clearly state any assumptions made and be data driven (ideally, leveraging dollars as the measuring stick of importance.)
- With the completed business case in hand, have you secured leadership (exec and/or board) level support to do something to alleviate the pains in the business case? At this point, it would be beneficial to have completed a few RFI’s with various vendors to get a base level understanding of the cost range associated with implementing and rolling out their solution. This is important as it will help you with questions like, “How much will it cost us to alleviate these pain points?”, which you are bound to get and should include in upcoming budget planning.
- You’ve got the business case, and hopefully, agreement from leadership to do something. The next step would be to conduct an internal environmental assessment of your organization. While the business case will uncover many elements of these environmental factors, what you are trying now is clearly understand how the organization will have to adapt when key processes, people and technology change. Consider how team members will react, who will be supportive vs. pushback, what should training look like, how will security be maintained and risks mitigated etc. You may not be able to identify absolutely everything (depending on how much time you invest in this effort), but having a lay of the land will help you get your arms wrapped around the actual effort, key players and processes that will be part of the journey. For this assessment, leverage tools/techniques such as a SWOT Analysis and a RACI matrix that will make life easier by removing potential surprises further down the road.
With these core activities completed (and documented), you'll be in a much better position when it comes to forming a close relationship with a SaaS provider. Obviously, this isn’t a definitive list, but it's certainly going to help you get started on the right path. A path focused on value, collaboration and transparency as you embark on those critical changes that will help your organization thrive.
