A recent conversation with executives from Clarizen, a software company in the work/project/task management realm, shows how profoundly SaaS can change the innovation process in technology companies. However, you won't get the most beneficial changes unless you're willing to make an investment.
During our briefing, I asked the CEO of Clarizen, Avinoam Nowogrodski, and the VP of Marketing, Sharon Vardi, whether being a SaaS vendor made it any easier to resolve the sort of questions that vex technology vendors. Their response: "Of course it does."
Here's one of those vexing questions: Why don't more customers move from a pilot to full adoption? The usual first answers blame someone else's department for the disappointing conversion rate: Your product stinks. Your leads stink. Your salespeople stink.
Round-robin finger-pointing like this thrives in an informational vacuum. If the only hard fact available is the conversion rate, marketing can accuse sales of presumed incompetence; sales can claim that the current bug count might have an effect on customer satisfaction; development can claim that it's bogged down in too many special requests from strategic customers; and so on.