SaaS Governance

For years, national and global companies have wrestled with finding the right balance between whether to centralize control, information, and decision-making or to delegate more management responsibilities into the field.

The “global headquarters” option might provide better communication and a more consistent strategy, but comes with high overhead costs that includes bureaucracy, servers, and heavy infrastructure. The decentralized approach results in closer relationships with customers but requires greater time and cost to coordinate these far-flung efforts. A recent article in The Economist (Fighting the Flab – March 22, 2014) suggests that corporate headquarters are now re-inflating after a couple of decades of slimming down. How can companies stop this pendulum and find the right balance in their management structure, and infrastructure?

Software-as-a-Service (SaaS) solutions, delivered and supported over the web, are now the answer. They have developed into high-performance, cost-efficient alternatives for global standardization.  Local entities can benefit from tools that otherwise would have been out of reach. Governance and best practices can be leveraged towards more efficient deployments and support processes.

SaaS solutions are the ready answer to the centralized vs. de-centralized debate, and to support sustainable and highly efficient business operations.

Source: The Economist, Fighting the flab, Mar 22nd 2014, Shumpeter

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