Compare Thermo’s experience with an application software provider with the experience of ResortCom.
Thermo’s had an easier time implementing the software whereas ResortCom came across some problems which delayed the implementation of its CRM system.
Why do you think Thermos had an easier time with a hosted software service than ResortCom? What management, organization and technology factors account for the difference?
Thermos moved to a hosted on-demand service provided by Oracle Corporation. They used Oracle E-Business, Oracle Warehouse Management, Oracle Order Management and Oracle Financials. The implementation process went smoothly because Thermos decided to use the services Oracle provided and adopted Oracles business process. They didn’t change the on-demand service to make it work with their current business process. As a result Thermos didn’t have any problems implemented Oracle and were able to see improvement within the Business.
ResortCom International’s experience with an application service provider didn’t go so well. They decided to use a hosted on-demand CRM system from RightNow Technologies. Although it appeared that this CRM system met most of their needs the system implementation process did not go smoothly. This was a result of ResortCom International’s request for automated features within the system. RightNow Technologies had to customize the software so that it met ResortCom International’s needs which became problematic.
If your company was considering using an application service provider, what management, organization, and technology factors should be addressed when making your decision?
If my company was considering the use of a service provider I would address the following:
i. Look into renting vs. buying IT assets
ii. Market demand for the firms services (inventory the services the company currently provides, survey the groups to see if the services you currently offer are meeting the needs of each group)
iii. Analyze the company’s business strategy and try to asses what new services and capabilities may be required.
iv. Asses what technology competitors offer to customers, suppliers and employees.
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