For the second consecutive quarter, the percentage of CFO’s who anticipate hiring more Accounting and Finance workers has gone up. While those who plan to hire more employees in the 2^nd quarter of 2010 stands at just 7%, it is still a sign of good news because it is the highest forecast since the 1^st quarter of 2009. In addition, the number of those expected to decrease staff has gone down the past two quarters.

A survey of 1400 CFO’s in the United States found that 84% are ‘somewhat confident’, and 34% are ‘very confident’ of the near future. The survey, conducted by Robert Half International also noted that the Mountain states are expected to hire the most new workers, many of which are in the education and health services sectors. Robert Half International chairman and CEO, Max Messmer said, “While most businesses remain cautious, some companies are beginning to hire selectively to ensure they have the employees in place to capitalize on opportunities that may arise as a result of an improving economy. In some cases, firms are using temporary professionals to help meet workload demands and as a way to evaluate individuals for potential full-time positions.”

Ultimately, this may be a good sign of things to come in our economy. To read more about this, click here.

Software as a service (SaaS), also called on-demand software is a service to customers via the internet. Because the applications are hosted, this eliminates the need for installation and running of applications on clients computers, or even servers, as well as maintenance and support. Vendors say that SaaS will cut costs, increase efficiency and is ERP ready. Yet SaaS is not the best choice for everyone. Due to the challenges that face companies regarding outsourcing, such as communication gaps and security, SaaS is still a question mark for many organizations.

Every business has its own unique challenges and therefore any single software application or SaaS vendor may or may not be a good fit in regards to the specific business processes and goals of that organization. The most important thing is that you do your homework on any solution you deploy ahead of time. Spending the time to get all of the information you can before making a decision will save you from making mistakes which can affect your company for years to come.

Definition

Software as a Service is a software application provided as a service over the internet, rather than a hard copy to be purchased at full price and installed and stored on one’s own server and operating system in house. These applications are multi-tenancy, meaning multiple customers use the same application, but they can only access their own information. You only pay for what you use and need, and can make changes as necessary.

The Pros

In an economic environment where executives are striving to find ways to cut costs while increasing business, many view SaaS as a great place to start. One of the main pros of this type of service is in regards to cost savings. With manageable start up costs, and an overall lower cost of ownership ‘renting software applications’ over the internet can fit in nicely with a business’ financial goals. It can allow you to save in areas of IT staff and infrastructure; maintenance fees; hardware and software maintenance and upgrades; firewall installation and more. Additionally, the type of software capabilities that may have been too expensive for your organization to purchase, are now made affordable in the ‘Cloud’, giving you access to applications that were previously out of reach. Further, it can save money by saving time. Managers are relieved of the need to allocate time to the management of back-office processes, and instead can focus on more important areas of your business such as: customer relationship management; business analytics; and decision making.

Other pros include:

• The software is always up to date;
• You have the ability to adapt rapidly adding seats, functions and applications as needed;
• Better accessibility from remote locations;
• Drives innovations in security and reliability;

The Cons

One of the biggest cons is that once you get all of your data onto a SaaS server, you might not be able to get it back out. While some vendors claim you can walk away whenever you want, many find that the vendor owns their data and processes and switching back to on-site software or to another cloud provider is much more difficult than originally communicated.

In addition, not all SaaS applications are a cheaper option over time. Most charge a per user, per month fee and some vendors require long contracts of 3 years or more. Make sure you measure what you’re getting vs. what you’re paying for over the entire length of the contract, as it might be a larger financial commitment than you initially expect.

Lastly, because SaaS vendors provide a single version of the application to everyone – customization could be much more difficult. If you need something specific to your unique requirements, you may not be able to get it. Many vendors will only be interested in making a change if a large percentage of their users are asking for it.

What You Can Do, and Expect

1. When many companies purchase software, they understand that it doesn’t come with any guarantees. Don’t make the mistake of assuming this is the same for SaaS applications. You should actually expect a lot more. This can include:
   1. A clear contract detailing what is and is not offered by the vendor
   2. Long-term price visibility
   3. Refunds for contract breaches on the part of the vendor
   4. A 100% web based solution that does not require any installations onto your computer.
2. While this trend hasn’t grown as much as it should, you should expect the really good vendors to provide dashboards with live service level metrics, giving users real-time information in regards to the providers operations and service levels.
3. Thoroughly research the vendor’s security features.
   1. Do they regularly test their system against breaches?
   2. Does their data center have physical around the clock security?
   3. Who has server access?
   4. Does the vendor perform background checks on their staff? (If their staff has access to your data – this is an important fact to note).
   5. Does the vendor have a Disaster Recovery and Business Continuity Plan in place that they are willing to share with you?
4. You should only be billed for what you use, and if your business fluctuates monthly or seasonally, it should be reflected in the cost to your organization.
5. Upgrades should be included in your contract and should not cause downtime for your company.

Questions to Ask

1. How often does the vendor back up data?
2. Will the SaaS application integrate with the software you currently use within your organization?
3. How does the vendor keep your data and that of other company’s separate?
4. How often has the vendor’s server gone down in the past, for what length(s) of time, and how quickly was access resumed?
5. And most importantly, if you were to leave the application for any reason, get clear answers on whether and how you can retrieve your data.

According to a recent Moss Adams survey, financial advisors who successfully integrate their core applications realize 30% higher profits. In an economy when we’re all looking for ways to grow our business, this is one great option. An efficient back-office with tightly integrated technology saves time, provides accurate data and reporting, and can improve your business process as a whole. So how can you make sure you’re choosing the right software, and implementing it properly?

A recent article on fa-mag.com, discusses several points that can lead you in the right direction to ensure you end up with the right thing.

• Develop your needs and wants lists before going shopping
  • You don’t want to get wrapped up in all of the fancy things the software can provide if it’s not going to meet your specific needs. So make a list of what you really want and need prior to the search – it will help you stay focused.
• Avoid one-size fits all systems
  • You don’t want to be forced to abandon the things about your organization that are unique to you in order to make the software work. Look for a solution that fits in nicely with your business model.
• Ask how the different core technologies will integrate with each other, specific to how your firm does business.
  • It’s important that different applications communicate. For example, a CRM package would dramatically loose its ROI if it doesn’t integrate with your Accounting Software. Ask your service provider how each piece will work with the others to ensure a smooth end-process.
• Make sure the new technology is scalable for where your firm plans to be in the future, not where you are today.
  • Ask for references of existing users who have grown with the system and find out if it has met their expectations over time.
• Take the new technology for a test drive.
  • Using you own data is a great way to find out if an application will be user-friendly for your organization.
• Budget one-third of the cost of the technology for training and customizations.
  • Training is extremely important. Getting your staff accustomed to the new programs and using them properly will go a long way in regards to the success of the new technology.

To read more about this topic click here.

Social media and networking have changed the way people relate to each other and to the companies they like and dislike. In a new world where people can express their opinion on any subject at any time, it’s more important than ever that Customer Relationship Management Solutions adapt and keep up. But studies and statistics show that they’re not. In a recent report by the Altimeter Group titled, The 18 Use Cases of Social CRM, The New Rules of Relationship Management, Jeremiah Owyang discusses this subject in great detail.

Ultimately, consumers and their ever expanding channels of communication will always outnumber the marketing, sales and support employees within a company. How do you combat the problem? “Through an organized approach using enterprise software that can connect your business to the social web, allowing you and your staff to respond in near-real time.”

The report also states, “Social CRM does not replace existing CRM efforts – instead it adds more value…Social CRM enhances the relationship aspect of CRM and builds on improving the relationships with more meaningful interactions.” Paul Greenberg, a well known CRM expert said, “We’ve moved from the transaction to the interaction with customers, though we haven’t eliminated the transaction – or the data associated with it…Social CRM focuses on engaging the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. It’s the company’s response to the customer’s ownership of the conversation.”

The report goes on to list 18 use cases in which companies can move from reactive to proactive programs. Some of them include:

• Social Marketing Insights. “Listen before you talk.”
  • Companies must listen to their customers, thus giving them relevance when they deploy their social marketing efforts.
• Rapid Social Marketing Response. “Defending the brand.”
  • An angry blogger can trigger a PR disaster and companies can no longer afford slow response times. You need to be able to identify what’s being said, determine the severity of the information, the influence of the person and the context of their previous interactions an d ultimately respond quickly.
• Social Sales Insights. “Finding your prospect’s watering holes.”
  • Organizations must identify both where their key prospects and customers interact, but also what their key needs are (that their brand can help them with.)
• Innovation Insights. “Catching innovation trends right under your nose.”
  • Companies must capitalize on innovation trends that can range from product fixes and enhancement requests to feature and solution suggestions. The goal is to capture, organize and prioritize ideas.
• Extended Collaboration. “Help me help you.”
  • Extended collaboration provides organizations with the ability to effectively listen and educate their extended networks with social learning tools.
• Seamless Customer Experience. “Customers don’t care what channel or department you work in.”
  • Customers view a company as a single entity, and if you can present a consistent face to them, you’ll increase their satisfaction.

To read the report in detail you can sign up for a free account here.