Project-Based Work in the Cloud: 4 Reasons to Consider SaaS PPM
From the Strategic Project Management Blog
by Ty Kiisel
I believe that successful project management is more about people than technology, but I'm convinced that project software in general and on-demand project management software in particular, make it possible for skilled project managers to focus on facilitating communication and work effectively with project teams. SaaS (Software as a Service) work management applications have been around for a while, and are giving legacy PPM applications a run for the money.
With that in mind, let me share a couple of opinions as to why I believe SaaS is an effective way to manage project-based work:
- It's relatively easy and inexpensive to enter: Last year in a conversation with the PMO of a large international organization who was in the middle of a SaaS project management software implementation. He expressed frustration at the previous three-year-long unsuccessful installation of a legacy PPM software that claimed to offer business process expertise. The inherent complexity of legacy PPM solutions make implementation and adoption lengthy and difficult. His consternation is shared by many who don't have the time or resources to accommodate an expensive, multi-year implementation process.
- Pay-as-you-go vs. pay-through-the-nose: Because SaaS software is typically subscription based, organizations can pay for the software when they use it, and access it via the Internet, rather than going through the expensive process of installing software on individual machines or purchasing expensive and costly-to-maintain servers to keep the software up and running.
- On-demand project management software makes real-time collaboration possible: Although all SaaS solutions are not created equal, taking project data from the desktop and making it available in a centralized location gives project managers and teams access to all the data relevant to their projects. Although some SaaS vendors do this better than others, this is the first step to real-time collaboration.
- SaaS empowers small- and medium-sized businesses: There will always be mega-organizations who insist on spending millions of dollars on legacy PPM software, but SaaS allows SMBs with much smaller budgets to take advantage of the latest (and in my opinion, some of the best) project management tools available. In fact, most SaaS solution providers are committed to a robust schedule of continual update and improvement.
My list is by no means all inclusive, but for organizations that want affordable access to the latest PPM technology, SaaS project and portfolio management is a great option.
Posted on: March 22, 2010 11:53 AM |
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Comments (4)
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SaaS allows organizations to take action, at a low investment of money, time and resources, and decide by trial whether they are ready for Portfolio Management and if the will is there, identify the areas where they could strength themselves and utilize technology to improve their bottom line; a strategic resource.
Bryan Hooke, PMP, ITIL
SaaS Is not a silver bullet. Before taking on SaaS for a business solution consider:
* You will have to change YOUR business processes, not the other way round. Don't even think of any large scale customisation of an SaaS offering - the costs and hassles are prohibitive. Accept that whatever you can't configure, you can't have.
* SaaS offerings will often affect several areas of your business, and the business processes that are impacted are cross divisional. Is everyone happy with that?
* The reliance on the SaaS solution will grow over time. Are you comfortable with trusting an increasing amount of core business functions to an outside provider?
* SaaS is short time cheap, long term expensive. Consider the Total Cost of Ownership of a business system, not just the purchase price of the product. People fall into this trap all the time.
Other points to consider:
* Is there an option to take the SaaS in-house in the future at an equitable cost? If not, don't buy. If you decide SaaS is not working for you, the cost of getting out is the stuff of nightmares.
* Do you want all your trade secrets, intellectual property, financial details, etc., in the hands of someone else? I feel very uncomfortable about that. That's like running your company with your pants down and your butt out the window, flappin' in the breeze.
Is there a place for SaaS? Yes.
Should all your systems be SaaS. No.
Consider:
* Running your internal projects better
* Managing your suppliers better
* Stop trying to do too much at once. Just do fewer things better.
* Stop making the same mistakes over and over again. Try making some new ones.
Successful companies and successful managers understand it is more about people and less about products.
John Stockton, independant IT and Business consultant at PMWorks, Sydney Australia
Ty Kiisel
Manager Social Outreach| AtTask
Lehi, Ut, United States
John,
Thanks for contributing. You might find it hard to believe that I pretty much agree with what you''ve said. SaaS isn''t a silver bullet for everything, but there are some things SaaS does very well. The above list in the blog post is a great start.
I couldn''t agree more with you when you suggest that project success is more about people and less about the particular project management tools you use. However, SaaS is a great alternative to very heavy and expensive traditional software approaches. If you have teams spread out throughout the world for instance, a SaaS solution is really the only way to keep people seamlessly connected. Depending on the product, I disagree that SaaS is always "short time cheap, long term expensive." Especially when you consider the expense of regular maintenance and service contracts required by some of the big boys.
The security argument is a little bit of red herring, but it is something to consider. With a SaaS product your information is stored on someone elses server, so you''ll want to make sure it''s safe and secure. Most SaaS companies take security very seriously, and there''s an awful lot of your personal information out there already. The characterization of "running your company with your pants down and your butt out the window, flappn'' in the breeze," is a rather inflammatory and unfair characterization in my opinion.
I believe a primary benefit of a SaaS product is that it allows easy entry for companies that don''t have the big budgets to spend $millions (that''s right, I said $millions) on the same thing with a mega-corporation who wouldn''t give them the time of day. Before you out-of-hand dismiss a SaaS project management solution out of hand, you should probably investigate the options for your organization.
I happen to know of a pretty darn good SaaS project management solution, if you''re interested.
Thanks again John.
Luis Branco
CEO| Business Insight, Consultores de Gestão, Ldª
Carcavelos, Lisboa, Portugal
Dear Ty
Interesting is your perspective on the topic: "Project-Based Work in the Cloud: 4 Reasons to Consider SaaS PPM"
Thanks for sharing
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