Enterprise Resource Planning Solutions

The Latest

12 August 2021: TechnologyOne released a significant report based on a six-month long study into the economics of Cloud computing and SaaS among Australian organisations.  

The study, which was independently conducted by IBRS and Insight Economics, explored the tangible costs associated with migrating to the Cloud, with both IaaS and SaaS journeys investigated. An economic analysis of the data collected through 67 in-depth case studies with CIOs and C-suite executives, additional interviews, and over 400 respondents, revealed a $224bn economic dividend for the Australian economy, prompting TechnologyOne to term the report "too big to ignore".

Why it’s Important.

While the report is aimed at policymakers and strategies looking at the macro-economic impact of technology, it also details the costs and benefits of Cloud adoption by industry sectors, providing IT strategists with realistic benchmarks. 

When developing the methodology for the report, IBRS and Insight Economics took a ‘no free lunches’ approach to data collection. Unlike other reports on the benefits of Cloud migration, the study took into account the costs of, and time needed for transition, including training, change management, skills (and skill shortages) and the fact that many organisations will need to retain on-premise environments to support legacy and home-grown applications for years to come. In addition, only productivity benefits that had been measured were included in the analysis. 

As a result of the evidence-only approach to the study, the ‘direct returns’ on Cloud migration detailed in the report are both far lower and far more realistic than those found in studies conducted in the USA and Europe.

The report may be accessed here: https://toobigtoignore.com.au/

Who’s impacted

  • CEO, COO, CFO, CIO
  • Cloud migration teams

What’s Next?

The conservative approach to the study, the rich data collected, means that organisations still struggling to make a business case for SaaS have practical benchmarks and economic modelling to call upon.

Related IBRS Advisory

  1. The economic impact of software as a service in Australia
  2. Get board agreement to the Cloud strategy

The Latest

3 August 2021: Salesforce has announced an agreement to acquire Servicetrace, a robotics process automation vendor. This marks another milestone in Salesforce’s strategy to deliver enterprise SaaS solutions surrounded by a mesh of low-code process automation and integration. It is also evidence of how the previously disparate markets for low-code application development tools, RPA, process mapping, and integration tools are consolidating into a service mesh that goes beyond process digitisation. In this case, when coupled with enterprise SaaS, the sum is greater than the parts.

Why it’s Important.

In the IBRS trends report for 2021-2026, a fourth-wave of ICT was detailed. The crest of this wave is the rapid consolidation of low-code, process mapping, RPA and (soon) rules engines, and AI.  

However, IBRS case studies with scores of executives involved in Cloud migration strategies, suggest that many organisations ICT groups are resistant to the coming wave. This is mainly due to sunk costs in on-premises software and infrastructure, the difficulty in justifying costs of integrating disparate systems and, at least to some degree, concerns over losing control or lacking skills to manage core infrastructure.

The cost of integration coupled with the need for digitising manual processes is currently a real economic barrier. Financial modelling suggests that the labour and costs of integrating disparate (on-premises and Cloud) solutions can destroy the return on investments for Cloud migration in the near to mid-term (1-5 years). This is especially problematic for industries with a complex mix of specialist enterprise solutions, such as healthcare and utilities. 

Who’s impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

Organisations that have previously rejected Cloud migrations due to not being able to make the financials stack up should consider re-evaluating the decision in 2022, taking into account the potential of buying into a mesh ecosystem that unifies low-code, workflow, process mapping, RPA rules engines and possibly AI services and that supports SaaS enterprise solutions ‘out of the box’.

Enterprise architects should also consider a shift towards a fourth-wave of ICT will impact their organisation’s ICT architecture and, if needed, begin planning to evolve to a new environment.

Related IBRS Advisory

  1. Hammering Low-Code into Place Takes Time
  2. Mulesoft Believes it Can Accelerate Digital Customer Experiences on SAP
  3. Salesforce introduces Hyperforce
  4. Salesforce Einstein automate