Many enterprises have already adopted Software as a Service (SaaS) for non-critical applications—more than three-quarters of U.S. organizations by the end of 2009, according to IDC. Now some are beginning to examine the case for introducing SaaS for core business applications, such as accounting and enterprise resource planning (ERP) systems. Research by Saugatuck Technology with members of the Financial Executives International (FEI) found that SaaS adoption for core financial accounting will rise from 15% of all enterprises in 2008 to 22% in 2010 and 27%—more than one in four—shortly thereafter.

This paper, based on the experience and best practice established by early adopters, sets out a framework for deciding on and implementing on-demand ERP within enterprises of 250 employees or more, or in divisions within a larger enterprise. The paper will examine key concerns such as data integrity in enterprise systems, maintaining compliance and ensuring proper process management, as well as discussing new skills and approaches to help maximize returns on investment.