This episode is brought to you by the Cloud Wars Expo. This in-person event will be held June 28th to 30th at the Moscone Center in San Francisco, California.
00:30 — Sadin’s Law of Big Enterprise System Implementations is essentially:
80 + 10 + 10 = ⅓ + ⅓ + ⅓
00:50 — 80% of organization processes are fairly standard.
01:05 — 10% of processes are Industry-specific customizations.
01:35 — 10% are firm-specific, or ‘folklore’—what your organization does is different than what everybody else does.
02:10 — Implementation cost and time are different. One-third is spent implementing the 80% ‘common processes’.
02:35 — One-third is spent on Industry customization (standards, regulations, accounting conventions, interfaces to vertical apps, etc).
03:00 — The final third of Sadin’s Law is spent removing or reducing ‘folklore’ customizations that were once valuable but not valuable anymore.
03:25 — ERP, CRM, and EHR vendors make that 80% (⅓) pretty easily.
03:35 — The next 10% normally costs one-third of the project. In an industry cloud, vendors take care of a lot of this big expense!
03:55 — So, you have time and energy to cut back that last third.
Want more CXO insights? Subscribe to the Future Office of the CXO channel: