SaaS as a Model for Supply Chain 2.0

Kevin Richardson — Mon, 24 Mar 2008 20:58:13 +0000

In a sign of the times, our idea of computing is changing again…and fast. First it was mainframes, then microcomputers (my Commodore 64 STILL amazes me), then the PC, then onto client/server and thin client and now it’s all about getting your head INTO the cloud.We’ve arrived at a point in the technology revolution in which it’s not about what you can do or what your computer(s)/server(s) can do. It’s about what the collective power can do in collaboration. In a strange twist of irony, what Larry Ellison desired and predicted has come true and it’s leaving his Oracle in the dust. And, the company leading the charge to end the dominance of enterprise computing is a former Oracle lemming who broke out of the Oracle brainwashing to create the “End of Software” movement. In short, Marc Benioff has set the vision for collaborative computing and it has teeth.

Salesforce.com: Why the model is working by ZDNet‘s Larry Dignan — Salesforce.com reported strong fiscal fourth quarter results and indicated that it is notching some wins against the large software vendors. Why are things falling in line for Salesforce.com? First the numbers, Salesforce.com reported fourth quarter earnings of 6 cents a share on revenue of $216.9 million, up 50 percent from a year ago. For the year, [...]

As Dignan says,

“The message is clear: software is becoming a service. Why install a huge block of code and deal with the headaches of administering it when you can get another company to handle the tedious stuff for you? Isn’t software supposed to solve problems, rather than create them?”

Simply put, the “outsource all but your core competancy” model has made it’s way to the heart of the IT industry. So, what does this mean for Supply Chain? Simple. We must continue to make supply chain more about simple, service oriented solutions to complex customer problems. Imagine utilizing GPS, RFID, WMS and POU application technology together (again with collaboration) to give customers that “You Are Here” feeling they get when looking at a mall directory. Imagine bringing customer, distributor and manufacturer together digitally to ensure quality, OTD and a “raving fan” customer.Sounds like a win-win to me…and look out, because before you can blink, Salesforce.com will be integrated into your supply chain.