There is a growing buzz in the industry around pay per view ERP solutions, also known as on-demand subscription applications. They have been around for quite some time, but adoption has been slow.

When we compare and contrast homegrown/custom applications, on-site licensed applications, and on-demand subscription we quickly see the benefits of employing on-demand applications at an ERP level.

Most companies have been outsourcing their most sensitive data over the web for years. Case in point is ADP as a payroll processing service. The sensitivity of employee data being routinely transmitted in order to manage payrolls and taxes.

Even SAP is moving to create subscription based CRM services that will be out later this year. This is in response to competitors advancing in this space. Many companies are looking to own this growing market, like Oracle on-demand and Saleforce.com's hosted CRM apps.

So what is holding back the flood gates? It really comes down to business cultures and traditional views of what is confidential and what can be put outside the firewall.  There has been so much institutionalization around those architectures that it will take bold leaders and champions to change it. The old 'not invented here'  syndrome is far reaching and very convincing. It is easier to say no and stay with what you know.

When you really think about it, hosted software or on-demand subscription apps are basically an extension of the growing business process outsourcing market. Technology is an enabler patiently waiting to be embraced. As companies continue to feel the pressures of economics and profitability they will turn more and more to pay per view because of the numerous benefits mentioned above. It is not likely to be a stampede, rather a slow deliberate pace of transition over the next 3 to 5 years.

contributed by Pete Pazmany

Today's Industry Trends: Is the Outsourcing Market Heading for a Shake Up?

According to AMR Research, over the next two years the outsourcing market is heading for a major shake up.  The potential is for the Indian services firms to jump ahead of the top six outsourcing providers:  Accenture, ACS, CSC, EDS, HP and IBM.  What is the cause of this shake up?  Three primary reasons: 

1. A significant number of contracts ($100B worth) will be due for renewal
2. The shift in approach from one provider to do everything to multiple providers in specialized skill areas
3. The increased market share Indian providers are seeing in revenue growth (30% or more per quarter)

So, what does this mean for those companies coming to the end of their contracts?  Opportunity for reduced spending by taking advantage of using multiple providers to increase competition and move to lower labor cost offshore providers. 

To read the full article published by AMR Research, visit: www.amrresearch.com

Contributed by: Deborah LeBaker

Spotlight: BPM - 'a misunderstood sleeping giant'

Do you ever get tired of the hype about Business Performance Management (BPM)? So much to change, to streamline, to partner....... and the benefits sound so compelling.

Many folks expected BPM to deliver management to the promised land. The land of visibility and accountability. What's not to like? Having numerous complex organizations acting independently as business owners, while building a threaded corporate solution for increased command and control. Brilliant!

Welcome to the paradox of Technology viability vs. Cultural acceptance. It was never about being able to drill a general ledger for account activity. The rubber meets the road when it comes to the real work that managers and team members must perform in order to deliver the results.

Rule #1 is if you want to make good decisions then you need good data. Obtaining good data is more elusive than one might expect. The majority of the work we perform in the BPM world is outside of today's technology solutions which are primarily used to capture only financials.

That is why a new breed of BPM is emerging that enables managers to account for their activities and then assign ownership and to drive closure from those responsible. It changes the business manager's role into an enabler versus a historian. This is far more than a simple project management software. It is about creating the verbal linkage and tools that are then aided by the financials .

Look at the work you perform today in order to ultimately generate good data. Managing stakeholder alignment, communications, risk mitigations, integrated project management, and closed loop process management are but a few of the activities that consume our daily routines. The ability to eliminate many of the spreadsheets and to integrate a usable tool suite to complete these activities will be essential for teams solving across many boundaries. How is your BPM going?

contributed by Pete Pazmany

Product Highlight

ASIL Inc.’s MAX Interact™ tool enables a company to easily implement closed loop accountability for deliverables in managing business change. This new functionality includes assigning and notifying owners of actions and due dates for deliverables, pre-notification of expiring due dates, acknowledgement of completed actions, and escalation of overdue deliverables.  The tool dynamically captures all deliverables assigned within the MAX Partnering™ software and places them into an integrated manageable area that links accountability to specific owners. MAX Interact™ also provides a secure access for owners to directly update status in the database.   This permits Program and Business Managers to transition from their traditional roles of chasing owners to obtain project status and turns them into proactive enablers resolving challenges and removing barriers to success.