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Integrated eHealth As Vice President of the Public Services group for SAP’s Asia Pacific Division, Adaire Fox-Martin oversees the strategic direction and activities in the area of public services in the health, education and defence sectors across the region and executive relationships with customers and partners. Ms. Fox-Martin is a key member of the SAP leadership team and plays a lead role in delivering SAP’s offering to public secto r customers. A respected thought leader, Ms. Fox-Martin continues to be invited at seminars and conferences by the media and analysts to address public services issues ranging from e-Government transformation and reengineering of Government processes to public service policies. She is regularly featured and quoted in numerous publications throughout Asia and Australia. Ms. Fox-Martin has over 20 years of experience in the field of information technology and management. Effective e-Governance can take Information Technology (IT) to the common man, while helping governments to regulate their services in line with the changing needs of both citizens and stakeholders, as well as develop the economy. Recognising the growing importance of e-Governance we have been bringing you a much needed, regular, interactive platform, where questions on a pre-defined theme are answered by Adaire Fox-Martin, Head – Industry & Solutions Group, SAP Asia Pacific Japan. With Information Technology playing an important role in governmental operations, one of the key questions raised in many government organisations is whether to opt for in-house software development or go in for commercial off-the-shelf (COTS) software package product(s). This is clearly a fundamental decision with many ramifications and implications. Are custom applications worth the cost and time spent in development, or would it be better to buy? In this issue, Ms. Fox-Martin shares her views on the important subject that government organisations face today - “Build versus Buy.” What is the current trend in IT initiatives being undertaken by Government Agencies? Though custom software can meet the specific needs of an organization, customization would involve upfront development costs to write the software, as well as an element of risk. Moreover, custom software requires some expertise to set up and sometimes to use. When procuring software, government agencies would look for • The required functionality • A low total cost of ownership (TCO) • Compatibility and integration with other applications • Future roadmap With the advantages of COTS software gaining prominence, there seems to be a growing worldwide trend towards acquiring COTS software. What are the advantages of COTS software? • COTS software often works out more economical than developing your own software from scratch as the development cost of an off-the-shelf package is distributed. • Can be acquired and deployed almost immediately, while custom software takes much longer. • A packaged software provider’s customer base brings a wealth of knowledge and experience regarding best practices beneficial for utilizing the software; this configuration guidance will enable organizations to accelerate their implementations and generate Return on Investment (ROI) faster. • By amortizing development and maintenance costs over many organizations, superior solutions can be acquired at a much lower cost. • COTS software ensures mature technology because it is already in the market for a certain time. Developed by dedicated vendors with an established track record,
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it is more reliable and gives an assurance that it actually works. The service provider usually takes care of support and maintenance needs of the organization. The same COTS software used across many different systems reduces training costs. The opportunity to include enhancements into the core product is a key value proposition. COTS software offers more diverse functionalities, which can address an organization’s future needs. A packaged software provider has a deep understanding of the underlying business model and leading best practices. Can COTS software work out cost-effective compared to custom software? In the long run, COTS software is far more cost-effective compared to custom software and has demonstrated better ROI over a period of 5-7 years of implementation. Further, it enables reduced overall IT costs and a lower TCO.
Where can I get more information about COTS software and how can I engage with the solution provider for evaluating such systems? Information about implementation of COTS software is available on the websites of solution providers, SAP being one of the prominent ones. Discussions can be had with the solution provider directly or with any major system integrator/ implementation partner of such providers. You can always send your queries and interest to the email provided herein. SAP AG is a global leader in Enterprise Applications. SAP for Public Sector is helping many public administrations around the world to embrace innovative Government initiatives. More information is available at: http://www.sap.com/industries/ publicsector. Please write to us your queries on this topic or email at info@egovonline.net \\
Next Month’s Topic: “e-Procurement: The way ahead for Efficient & Effective Sourcing in Government & Public Sector Organizations” 50
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