IBM has announced that nearly half of the businesses using Software-as-a-Service (SaaS) are achieving competitive advantage, rather than simply reducing costs, according to a recent global survey involving with more than 800 IT and business decision makers that was conducted by the IBM Center for Applied Insights.
The study confirms that SaaS
is delivering on a wide array of benefits, on top of lowering total cost
of ownership, and shows that organisations that strategically and collaboratively
deploy SaaS are able to execute on programmes that drive business growth
better than their peers who lag with SaaS deployments.
Cruise Lines, which organises cruises in Southeast Asia among other destinations,
originally turned to SaaS
to save money and benefit from increased efficiencies while gaining instant
access to technology resources.
Over time, the company realised
that the IBM Connections social software platform, delivered as a service
through the cloud, fostered a more team-oriented environment that encouraged more innovative thinking. Princess uses this as a competitive differentiator
in the market to tout its superior customer service, the net effect of
a socially advanced workforce.
Nearly one in five companies
that responded to IBM’s survey has deployed SaaS broadly and is now gaining
competitive advantage as a result. Specifically, compared to peers that are newer or less
advanced with their SaaS adoption, these "Pacesetters" are:
more likely to have increased collaboration across their organisation
and ecosystem through SaaS
than twice as likely to have leveraged analytics across the organisation
to turn big data into insights using SaaS
than twice as likely to have increased innovation using SaaS
“It’s common knowledge that
deploying SaaS broadly has economic advantages, but the truly innovative
companies have recognised that SaaS delivers real competitive advantage
to fuel top-line growth, as well,” said Craig Hayman, IBM General Manager,
Industry Solutions and executive sponsor of the study.
the industry’s first cloud-suites
for the entire c-suite in June 2013. A series of new SaaS applications were announced
Global spending on SaaS is expected
to reach US$45.6B by 2017, according to industry
estimates. SaaS is
often used by line-of-business leaders who are looking to deploy technology
to rapidly provide their teams with needed functionality, increase productivity
and address new market opportunities. In fact, industry
that by 2017, CMOs will spend more on IT than CIOs, while Forrester reports
that 65 percent of business leaders have plans to buy technology for their
group without involving IT at all.
However, circumventing IT to
deploy SaaS without provisioning and securing it first can have unintended
consequences, and IBM’s study suggests that organisations in which IT
and business leaders work together to select, secure and deploy SaaS applications
are the ones who see the greatest payback.
Click here for more information, or to download
the full report.
*To gain a better understanding about how leaders are unlocking competitive
advantage through SaaS, the IBM Center for Applied Insights** conducted a
survey of 879 IT and line-of-business decision makers in six countries
globally, including Brazil, China, India, South Africa, the UK and US.
Twenty-two percent of respondents are C-level executives (10% C-level
IT and 12% in other C-suite roles). They work in enterprises of
varying sizes, 20% with 10,000 or more employees and, at the other
end of the spectrum, 40% with fewer than 2,500 employees.