Discussion Responses

Referring to the MTC Case Study, Raj Patel, the Chief Information Officer (CIO), has indicated that the current IT strategy is to adopt Software as a Service (SaaS) solutions. This week’s discussion focuses on the benefits, considerations, and risks of adopting a SaaS solution.

Group 4: Review the Week 7 reading Implementing a SaaS Solution and then prepare your initial response as follows:

1. List two benefits of the IT Strategy to use a SaaS solution to support the hiring process.

2. Identify three things the CIO and his team should look for as they consider which SaaS vendor to select.  Explain what they are and why they are important to MTC’s business.

3. Then, explain what you think is MTC’s biggest risk in outsourcing this IT function, why you selected that risk, and what MTC's IT department’s key responsibilities are to minimize risk and protect the business as they select and use a SaaS solution.

Remember – the Group 4 initial posting is due by Wednesday midnight; it should be about two short paragraphs in length, supported by external research, and it should be posted by clicking on "Start a New Thread".  These postings need to thoroughly respond to the questions and incorporate relevant research correctly.  Please look at what has been posted by your classmates before choosing your examples, and then select something that has not yet been discussed, if possible. Let’s try to spread the discussion across as many examples as possible. 

Then members of Groups 1,2 and 3 should reply to at least three different postings by other classmates before Sunday midnight.  Responses to initial postings should be specific and assess whether posting accurately and sufficiently addresses the questions asked in the discussion topic, and should incorporate relevant research correctly.  Explain your assessment

as to why the information is or is not correct and/or complete, providing correct information to enhance the discussion.

Responses must be in APA format, 250+ words per response, no less than one legitimate, verifiable reference per discussion post Due by 8 pm May 3, 2019.

Post:

Using SaaS to support the hiring process can benefit MTC in a number of ways. The first form of benefit that I would like to point out is perhaps not the first we might tend toward thinking of: reputation. MTC is an IT consulting firm and, as is pointed out in the case study, it is important for them to manage their own IT systems well. Furthermore, if there is a viable IT solution that can dramatically improve a manual process, an IT consulting firm might be well to utilize it in order to bolster their image. Scalability is another great benefit of using SaaS for supporting hiring. Scalability means that the system can accommodate a growing or shrinking user or activity base without requiring additional investments in hardware or new software platforms (IFSM 300, 2019).

Three questions to consider when selecting a SaaS vendor are: (1) Is the product really SaaS? (2) What are their processes for updates and support? and (3) What is your access to the CEO? (Heller, 2017). One should ensure that the system is truly a SaaS and not a series of on-premise solutions presented as cloud or SaaS (Heller, 2017). Understanding the firm's processes for updates and support is vital to ensure that downtime will not be an issue and that updates will be speedy. Access to the CEO of the SaaS company is important for any firm to consider when selecting any SaaS. In this case, MTC needs to ensure that its SaaS is not only reliable but functional, and having access to the provider's CEO can help facilitate these factors. Perhaps the biggest risk of outsourcing this IT function is that it does not work out-of-the-box which is a major requirement. Working out-of-the-box not only implies that the system is easy to navigate, but that it is readily accessible and reliable from the beginning. The key responsibility of MTC's IT Department to minimize this risk is to do due diligence on the SaaS before purchase and implementation.

References

Heller, M. (2017). How to select a SaaS vendor. CIO. Retrieved from https://www.cio.com/article/3233197/how-to-select-a-saas-vendor.html

IFSM 300. (2019). Implementing a SaaS solution. University of Maryland, University College. Retrieved from https://learn.umuc.edu/d2l/le/content/362995/viewContent/14088296/View

Response:

Post:

SaaS is defined by "it is a distribution model for software, whereby instead of downloading the software to run locally on your PC, the program is hosted by a third-party provider, and then accessed by users over the internet, typically through a web browser interface." (Demuro, 2018) There are many benefits why one would choose SaaS over any other system. A few to mention are, "the vendor is responsible for the day-to-day operation of the system, for the ongoing operation and maintenance of the system, for protecting the sensitive business data housed in the system, for upgrading and enhancing the system, and for providing training and support." (UMUC, 2019) This is important because it is allowing the vendor to do all the work with the system and allow the customer to just use the system and continue their business as usual. 

The CIO when choosing a vendor should look at the whole system altogether to make sure that it is the right fit. Some more specific things they should pay close attention to is the cost. MTC is worried about the system being cost-effective and wanted to spend less money than they are already. There would be no point in getting a system that they spend more money on because then they would not be saving any money on the system. Another thing is their security, they need to make sure that the system is secure enough to have the individuals information on the system and not worry about their information getting out to anyone that would steal it. One of the most important things that I think the CIO should consider is if the system will work with what they are trying to do. If the system cannot do the things they are looking for then it is pointless to use that vendor. "The more the business process has to adapt to the system, the less likely the system is to be accepted by the users." (UMUC, 2019)

The biggest risk that I believe MTC should worry about is security. When using a third party you have to rely on their security measures to make sure that they are secure enough and the private information does not get out. You don't know these people and have never met them so you need to make sure that their reputation is the best and that security is not an issue. "It’s a particular major worry for users who plan on storing sensitive data that will be detrimental if it ends up in the hands of others, especially their competition." (Finances Online, 2018)

References:

10 SaaS Security Risks And Concerns Every User Has. (2018, January 30). Retrieved from https://financesonline.com/10-saas-security-risks-concerns-every-user/

DeMuro, J. (2018, August 06). What is SaaS? Retrieved from https://www.techradar.com/news/what-is-saas

University of Maryland, University College. (2019). Implementing a SaaS solution. Retrieved from https://learn.umuc.edu/d2l/le/content/362995/viewContent/14088296/View

Response:

Post

1. List two benefits of the IT Strategy to use a SaaS solution to support the hiring process.

· The first benefit of using a SaaS solution that I would like to highlight are the potential cost savings to MTC. SaaS solutions are “usually leased or subscribed to by the customer, and the software is owned by the vendor, runs on the vendor's hardware, and is accessed via the internet as a ‘service’” (University of Maryland, University College, 2019). Because the vendor who owns the SaaS solution is “responsible for the day-to-day operation of the system, for the ongoing operation and maintenance of the system, for protecting the sensitive business data housed in the system, for upgrading and enhancing the system, and for providing training and support” (University of Maryland, University College, 2019), the overall cost for the subscriber is significantly reduced.

· Another major benefit of a SaaS solution vs a COTS solution is the availability of vendor support. The textbook notes that “once the organization purchases a COTS solution, the vendor's involvement in the day-to-day operation is nonexistent” (University of Maryland, University College, 2019). As a result, if MTC was to experience issues with integrating the system with operations, or have training issues, or security concerns, those issues are solely the responsibility of MTC to address. With a SaaS solution, this is not the case. SaaS vendors are involved in the process and are invested in keeping the subscribers business. As such, they will assist MTC with a variety of concerns to ensure that their solution becomes an essential service in their subscriber.  

 

2. Identify three things the CIO and his team should look for as they consider which SaaS vendor to select.  Explain what they are and why they are important to MTC’s business.

· The first thing that the CIO and his team should consider when looking to get into a SaaS solution, is how to get out of a SaaS solution. Delsh notes that “companies get acquired, change strategy or simply go bankrupt. If you intend to build parts of your business workflow on a SaaS product that is by nature out of your control, you should explore your exit options” (Delsh, June 13, 2018). Involved with that is determining who owns the data that is likely stored on the SaaS provider servers. If that data is owned by them, it may be wise to negotiate to ensure that you have a clause to retrieve your data in the event of a dissolution of the contract.

· Data stored in a hiring system likely contains a large amount of personal identifiable information (PII). This data is extremely sensitive and is the target of cyber criminals. It is imperative that CIOs determine what measures will be taken by SaaS providers to protect this information. “Always be sure to ask potential vendors about the security certifications they hold” (Lipka, n.d.).

· Data migration and integration is the third thing that the CIO and his team should look for. Transitioning from a manual hiring process to a digital, web-based SaaS solution, will require a fair amount of data uploading. It is in the best interest of MTC and the SaaS provider to expedite this process in order to get the hiring system operating. “For a large SaaS deployment, these can be points of leverage in contract negotiations, since it's in everyone's interest to make the migration as fast and painless as possible” (Gray, August 1, 2016).

 

3. Then, explain what you think is MTC’s biggest risk in outsourcing this IT function, why you selected that risk, and what MTC's IT department’s key responsibilities are to minimize risk and protect the business as they select and use a SaaS solution.

· I think the biggest risk that MTC faces in selecting a solution is determining what level of flexibility in the software should be sought after. Delsh notes that companies should “beware that often times, it’s the least mature players in the market that bring you the latest technologies” (Delsh, June 13, 2018). Well established companies have a large number of subscribers and are much less likely to listen to the input of one specific company when making changes to their platform. If MTC wants a company that has that kind of flexibility, they may lean toward a newer SaaS provider. “These companies could lack proper support and documentation or go out of business due to their risky business model” (Delsh, June 13, 2018). If that occurs, MTC could be caught flat-footed and be without an essential service necessary to run the business. MTC must weigh these considerations, and determine what vendor provides both flexibility and maturity.

References

Delsh, K. (June 13, 2018). How to choose a SaaS provider: Key questions you should ask yourself. Retrieved from https://bdtechtalks.com/2018/06/13/software-as-a-service-saas-vendor-how-choose/

Gray, P. (August 1, 2016). SaaS checklist: Nine factors to consider when selecting a vendor. Retrieved from https://www.zdnet.com/article/saas-checklist-nine-factors-to-consider-when-selecting-a-vendor/

Lipka, N. (n.d.). Ask these questions before you invest in a SaaS ITSM solution. Retrieved from https://www.vivantio.com/resources/blog/saas-itsm-solution-questions/

University of Maryland, University College. (2019). Implementing a SaaS solution. Retrieved from https://learn.umuc.edu/d2l/le/content/362995/viewContent/14088296/View

Response: