 At the most simplistic level, On Demand is the delivery of software functionality over the Internet from a single application instance that is shared across all clients. On Demand solutions require only a Web browser for access, eliminating the need to install or maintain software or hardware. They also replace upfront licensing fees and lengthy implementation cycles of traditional installed applications with a "pay-as-you-go", subscription-based service relationship.
However, On Demand / SaaS is less about technology architecture than it is about a new business philosophy that incorporates the delivery of software, content, and services as flexible Web-based solutions. For supply managers this means accessing application functionality (sourcing, contract management, procurement), research and intelligence (supply market data, category templates), and support services (spend data cleansing, sourcing event management) as integrated Web services.
Traditional enterprise application businesses are not built for such dynamic performance. Application development cycles at these firms are lengthy and complicated by the need to support antiquated architectures and legacy application versions. Their service groups are primed for large, complex, and costly implementation and integration projects -- not rapid on-boarding and flexible lifecycle support services.
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| “Internet Technology is the key enabler to facilitate and improve the entire KLM procurement and supply chain management process” |
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| -- KLM |
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| “Users of On Demand supply management solutions are able to drive 28% more spend under management within the first year of deployment than those using installed software.” |
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| -- AberdeenGroup |
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