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There’s increasing evidence that many large enterprises are going on-demand (or software-as-a-service/SaaS) for their supply chain management and other enterprise solutions.  Here is a new article talking about the growing trend and mounting evidence.  The article states that “Over the next 12 months, of the number of U.S. organizations initially implementing a business management application such as ERP or CRM, the percentage implementing a SaaS solution will approach the percentage of organizations deploying traditional licenses in that market. ”

The article also cites security concerns by larger companies as one inhibitor.  We’re seeing this change for two reasons: 1.) security technology is such that transmission of data can be done very securely today and best-in-class on-demand/SaaS services employ such tight security measures and 2.) the majority of large manufacturers are outsourcing a substantial and growing portion of their business.  This means that much of their sensitive data is already shared outside their four walls.  In an on-demand environment, it actually means that they can regain visibility into that critical data necessary for them to coordinate effective response to change, which is the main role that brand owners play in such a heavily outsourced supply network.

This entry was posted on Monday, June 2nd, 2008 at 12:33 pm and is filed under On-demand, Response Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.