As-a-Service Delivery Models: Why It Works and Barriers to Entry

As-a-service models weren’t seen as a major player until very recently. However, a 2016 survey by HfS Research found that 56 percent of business leaders were taking steps to adopt as-a-service features soon. But why the sudden surge of interest in as-a-service? In an article for CIO Insight, Fabrice Dersy identifies some reasons why to adopt as-a-service:

  1. Keeping up with competition
  2. Agility
  3. Speed
  4. Advanced analytics
  5. Business outcomes

As-a-Service as a Future

The businesses that have accepted as-a-service features have gotten the competitive edge they needed. They’re able to respond to change far quicker to the fairly uncertain market nowadays. This speed is also present in advanced analytics by reducing the time it takes to react. Business outcomes can be better suited to the business with as-a-service, which is a win for everyone.

But there are also some inhibitors of as-a-service as well. The value of these new services has to be measured in different means than fixed-price or full-time employees. Working with service providers to reach end-to-end solutions across a function or process should be followed instead of using point solutions. Keep in mind that the technologies involved in as-a-service have advanced at different rates. Additionally, multiple stakeholders complicate approvals and as such should be led by a specific set of objectives.

There are some entry points for as-a-service to help begin your digital transformation. Dersy identifies five of them. Here is a selection:

  1. Start with technology. By migrating IT functions to the cloud, you can take an incremental approach to as-a-service—one application or process at a time.
  2. Automate processes. Businesses with an established infrastructure and processes may want to look at how they can drive flexibility and accuracy through automation.
  3. Adopt platforms. Many leading organizations are leveraging external resources to create new ecosystems and synergies to drive sustainable growth. By plugging into one of these ecosystems, a business can use its services and capabilities as-a-service.

One of the other two points are to deploy analytics. Basically your analytics will help you gain insight in the routes to take moving forward. The other is using renewals as an opportunity. When some other service is reaching a close, you can take advantage of the new opportunity to begin using as-a-service.

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