How to plan and execute a SaaS implementation

Planning the SaaS implementation

Planning the SaaS implementation has two major components -- determining the type of SaaS implementation that meets the organization's needs and documenting the requirements for the application package.

Types of SaaS implementations

At a high level, there are three types of SaaS implementations. The choice of implementation approach is critical to the success and adoption of the SaaS model and application. The choice depends on the type and complexity of the SaaS your organization is implementing, as well as the expertise and availability of internal resources. The three types of SaaS implementations are:

• Self-guided. This approach provides the organization with the highest level of control. It is best for small, horizontal SaaS products that are widely used and have limited or no data considerations. Examples include communication applications, such as Slack, Zoom and MS Teams. These implementations often have internal champions that handle installations successfully. However, it is important to plan and implement change management.
• Enterprise SaaS. In this approach, the implementing organization hires a vendor or an integration consulting firm to manage and execute the integration. This approach is often used when large organizations implement large ERP or CRM packages, such as Salesforce, Workday or Oracle. These packages are complex and involve major data transformations, complex customizations and configurations, and security considerations. Although this approach is very efficient and effective, it is important for internal resources to work closely with the integrator as members of the team. The Statement of Work (SOW) must clearly state what is required of the integrator and the client, and document the process for handling defects and other issues. Ensure that training and support are included in the SOW, and include a cutover plan for internal resources to assume client responsibilities.
• Hybrid SaaS. Unlike the enterprise approach, which is completely cloud-based, hybrid SaaS includes cloud and on-premises components. In a hybrid implementation, the vendor or integrator and the implementing client jointly plan and implement the installation. This is a popular approach because it provides more in-house control; however, it increases complexity. 

Sometimes, organizations attempt a self-guided implementation using only internal resources, only to realize during the project that these resources cannot be fully allocated due to more critical projects. However, people might not have enough experience with the SaaS delivery model or the software being implemented to successfully complete the required tasks on schedule. This situation can usually be avoided with in-depth project planning and scheduling.

Issues also tend to arise with configurations and data conversions. It is more cost-effective and time-saving to engage integration consultants at the beginning of the project rather than wait until issues impede progress and delay the schedule.

Requirements documentation

Requirements are the basis of any successful software application. Requirements for SaaS delivered packages have added complexity, especially in the areas of workflow analysis, data analysis, integrations and security/compliance. Let's take a closer look at each of these:

Workflow analysis

Workflow analysis is part of any system's requirements documentation. However, when planning a SaaS implementation, it becomes more of a gap analysis and workflow alignment. When implementing major ERP, CRM, or accounting packages, it is important to realize that they already have well-established functional workflows. To take advantage of the available functionality, perform a gap analysis to align your organization's workflows with the SaaS packages. The results of this analysis help configure the product and establish what configurations might be necessary. It is best to configure as much as possible and customize only where it is absolutely necessary. This reduces costs and the testing needed for new releases. When the vendor pushes a new release, the configurations will have been tested. However, it is the client's responsibility to test their customizations within a potentially limited time frame.

Data analysis

There are several aspects to data analysis, all of which are critical to a smooth data migration. First, determine what data needs to be migrated and how much historical data needs to be transitioned and stored. Next, document your data types, their complexity, how their states change throughout the workflows and the timing of the transitions. Since data transformation is a major aspect of the implementation, data analysis is invaluable for scheduling and risk analysis.

Integrations

Document all systems that need to be integrated with the SaaS product, along with the integration requirements for each. This might involve working with multiple vendors, which could expand the scope and make it more complex than initially expected. It is important to coordinate with all vendors upfront to avoid unexpected issues once the implementation is underway.

Security and compliance assessments

A thorough understanding and documentation of all organizational and regulatory authority requirements is critical for implementation and during vendor selection, as these requirements are non-negotiable. Since the SaaS model is multi-tenant, user access and data protection are of the utmost importance.

Implementation project plan

The project plan is one of the most important parts of a SaaS implementation. Whether you are implementing a major ERP product or a new communications tool, there are many moving parts, and each is critical to a successful implementation. It is important to create a comprehensive project plan, a schedule and a risk register. Incomplete planning is the main reason that SaaS implementations fall behind schedule and fail.

The implementation project plan is the primary document -- it is a collection of the documents needed for each aspect of the implementation. Here is a list of sections to be included in the SaaS implementation plan:

• Implementation team roles and responsibilities. A cross-functional team is needed, including IT members, testers, business analysts, operations, compliance and security. It is important to include vendor resources and integrators in this document.
• Test plan. This includes the test approach for both the multi-tenancy model as well as the functional and non-functional requirements. Scope, as it relates to configurations and customizations, should be clearly defined. Full functional testing of the product is the vendor's responsibility. Defect management should be documented and should be aligned with the process described in the SOW.
• Risk management plan. This is the high-level approach to mitigation of risks and issues; specific risks and issues are documented in the risk register.
• Change management plan. This documents how the employees, customers and other stakeholders will be prepared for and supported prior to, during and after the implementation. 
• Training plan. This documents the specific approach to user training, including materials and methods.
• Data migration plan. This is one of the most important plans in the implementation. It includes the ETL strategy and informs the cutover plan.
• Cutover plan. Data, change management strategies and the criticality of the application are factors in the choice of cutover approach. Approaches to cutover include:
  • Big Bang, i.e., full cutover all at once.
  • Phased, where cutover is handled in logical groups.
  • Parallel, where the legacy application runs along with the SaaS product and cutover happens at a designated time.
• Upgrade plan. The vendor provides their upgrade strategy that the client must align their upgrade strategy to. For example, customization testing must be scheduled according to when and how the vendor will push the upgrades. 
• Continuous monitoring plan. This is an important part of the ongoing operations. KPIs should be a part of this plan.

In addition to the master implementation plan, you'll need a schedule as well as a risk register. Together, these are the critical components of successful SaaS implementation.

Gerie Owen is a QA engineering manager at Roobrik. She is a conference presenter and author on technology and testing topics, and a certified Scrum master.