SaaS has become the default for many enterprise applications. Cloud-delivered software promises faster deployment, reduced infrastructure burden, and continuous improvement. Yet SaaS implementations still fail—from poor fit to inadequate change management to integration challenges.
This guide provides a framework for SaaS implementation, addressing selection, configuration, integration, and adoption.
Understanding SaaS Implementation
How SaaS Differs
SaaS implementation differs from on-premises:
No infrastructure: Infrastructure is vendor's responsibility.
Configuration over customization: Working within vendor's design, not custom development.
Continuous updates: Regular releases with new features and changes.
Multi-tenant considerations: Shared platform with other customers.
Integration dependency: APIs and middleware for connectivity.
SaaS Success Factors
What makes SaaS work:
Fit: Solution matches business needs.
Adoption: Users embrace new ways of working.
Integration: Connected to other systems effectively.
Governance: Ongoing management and optimization.
Change readiness: Organization prepared for continuous evolution.
Common Failure Modes
Over-customization: Forcing SaaS into old ways of working.
Under-investment in change: Assuming SaaS needs less change management.
Integration neglect: Not planning for connectivity requirements.
Governance vacuum: No ongoing ownership and optimization.
SaaS Selection Framework
Requirements Definition
Understanding what you need:
Functional requirements: What the system must do.
Non-functional requirements: Performance, security, compliance.
Integration requirements: What it must connect to.
User requirements: Who uses it and how.
Vendor Evaluation
Assessing vendors:
Solution fit: How well does it address requirements?
Vendor viability: Financial health, market position, trajectory.
Total cost of ownership: Full cost including implementation, integration, and ongoing.
Customer evidence: References and case studies.
Roadmap alignment: Future direction matching your needs.
Configuration Assessment
Understanding flexibility:
Configurability: What can be adjusted without development?
Extension model: How can functionality be extended?
Customization limits: Where does vendor draw the line?
Upgrade impact: How do customizations affect upgrades?
Implementation Approach
Phase 1: Planning
Preparing for implementation:
Project planning: Scope, timeline, resources, governance.
Change management planning: How adoption will be driven.
Integration planning: Technical integration approach.
Data migration planning: Moving data to new platform.
Phase 2: Configuration
Setting up the system:
Business process alignment:
- Map processes to system capabilities
- Identify configuration options
- Make fit/gap decisions
- Resist customization unless essential
System configuration:
- Security and access
- Workflows and automation
- Data structures
- Reporting and analytics
Best practice adoption:
- Embrace vendor best practices
- Change processes to fit system (not vice versa)
- Learn from vendor's experience
Phase 3: Integration
Connecting systems:
Integration patterns:
- API-based integration
- Middleware/iPaaS
- Pre-built connectors
- Custom development where needed
Data integration:
- Master data synchronization
- Transaction flows
- Reporting integration
Testing:
- Unit integration testing
- End-to-end testing
- Performance testing
Phase 4: Migration
Moving to new system:
Data migration:
- Data cleansing and preparation
- Migration tooling and approach
- Validation and reconciliation
- Cutover strategy
User transition:
- Training and enablement
- Go-live support
- Hypercare period
Phase 5: Optimization
Ongoing improvement:
Adoption monitoring: Are users adopting as expected?
Performance optimization: System and process tuning.
Feature adoption: Leveraging new capabilities.
Continuous improvement: Ongoing enhancement.
Change Management
The Adoption Challenge
SaaS implementations often underestimate change:
Assumption trap: "It's easier than on-premises; less change management needed."
Reality: Process changes, workflow changes, and new ways of working still require adoption effort.
Change Approach
Communication: Why we're changing, what's different, what's in it for users.
Training: Role-based training on new processes and system.
Support: Help desk, champions, go-live support.
Reinforcement: Sustaining change after go-live.
Governance and Operations
Ongoing Management
SaaS requires ongoing attention:
Application ownership: Business and technical ownership.
Release management: Managing vendor releases and updates.
User management: Access, roles, onboarding/offboarding.
Performance monitoring: System health and optimization.
Vendor management: Relationship and contract management.
Continuous Improvement
Maximizing value over time:
Feature utilization: Are you using what you're paying for?
New capabilities: Adopting valuable new features.
Process improvement: Refining processes with system capabilities.
Benchmark comparison: How does your utilization compare?
Key Takeaways
-
Fit over customization: Choose SaaS that fits; adapt processes rather than over-customizing.
-
Change management is essential: SaaS still requires significant change management.
-
Integration is critical: Plan and invest in integration as core requirement.
-
Governance is ongoing: SaaS requires continuous management, not just implementation.
-
Vendor relationship matters: Long-term success depends on healthy vendor relationship.
Frequently Asked Questions
How do we choose between multiple SaaS options? Requirements-based evaluation, demos, references, and total cost of ownership analysis. Consider long-term fit, not just initial requirements.
Should we customize SaaS applications? Minimize customization. Customize only when business requirement is essential and can't be met through configuration. Customization complicates upgrades.
How do we handle SaaS upgrades? Establish release management process. Test upgrades in sandbox. Plan for regular adoption of new features.
What about data ownership in SaaS? Ensure contracts address data ownership, portability, and retention. Have exit strategy.
How do we manage multiple SaaS applications? Integration strategy, master data management, and portfolio governance. Avoid SaaS sprawl.
What skills do we need for SaaS implementation? Business analysis, configuration expertise (often vendor-specific), integration skills, change management, and project management.