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Transcript of André Bakken Macrovision Senior Product Manager Logo Area for Speaker Five Best Practices for...
André Bakken
Macrovision
Senior Product Manager
Logo Area for
Speaker
Five Best Practices for Streamlining Licensing Operations
22
IMAGINE…IMAGINE…
33
AGENDAAGENDA
Operational Challenges
5 Best Practices
Case Studies
Why Automate Your Operations Applications
Q & A
44
INEFFICIENT LICENSING OPERATIONS NEGATIVELY INEFFICIENT LICENSING OPERATIONS NEGATIVELY IMPACTS VALUE CHAINIMPACTS VALUE CHAIN
“It takes too many steps to generate licenses for
orders”
“I handle too many support calls for incorrect keys and license changes”
“Supporting new packaging, pricing, promos, demosrequire costly customizations”
“I could sell more if our packaging & pricing was more flexible…or If I could do more demos.”
“I cannot introduce new pricing,packaging, demos,promotions because our systems &operations are inflexible”
How do I streamline operations to cost-effectively respond to business and end
user needs?
VPOperations
Marketing
Sales
Customer Support
Fulfillment
InsideSalesIT
60% of software vendors made licensing changes in 2003*
60% of software vendors are considering changes in 2004*
33% of software vendors that made licensing changes in 2003 are considering changes in 2004 as well*
* Source: IDC’s Future of Software Licensing Study, 2004
“I think I’m losing money on renewals & upgrades because
I don’t know when licenses expire or what product version a customer is on”
55
VPOperations
INEFFICIENT LICENSING OPERATIONS NEGATIVELY INEFFICIENT LICENSING OPERATIONS NEGATIVELY IMPACTS PROFITABILITYIMPACTS PROFITABILITY
Sources: (1) McKinsey & Co (2) “Technical Support Cost Ratios”, Soft Letter & The Association of Support Professionals (3) Macrovision customer surveys
InsideSales
5-10% missed renewal & upgrade
revenues(3)
Customer Support
$36 per licensing
related support call(2)
…lost keys…incorrect
keys…license changes
Fulfillment
1-2% of gross
revenues spent …in
product fulfillment & generatinglicenses(3)
Marketing
Sales
5-10 percentage points lower profits (1) …inflexible pricing & packaging
IT0.1-0.3% of gross revenues to customize
inflexiblesystems(3)
…to keep up with new pricing/packaging
66
INEFFICIENCIES RESULT FROM BROKEN LICENSE INEFFICIENCIES RESULT FROM BROKEN LICENSE LIFECYCLE PROCESSESLIFECYCLE PROCESSES
License Lifecycle
2. Lack of ERP/CRM integration
…manually entering order information to create licenses---time consuming & error prone
3. Poor design of install & activation experience…multiple installations & keys…error-prone user inputs (e.g. what is a HOSTID? Where is it?)
5. Manual trackingof installed base
…for upsells andrenewals
4. Lack of self-service…for license and entitlement changes
1. Inflexible systems…for handling new packaging
or pricing
77
AGENDAAGENDA
Operational Challenges
5 Best Practices
Case Studies
Why Automate Your Operations Application
Q & A
88
1.1. Ensure Change-ReadinessEnsure Change-Readiness
• Assume license changes are inevitable
• Expect changes on a continuous basis
• Operational applications must be flexible for changes in• Business requirements
• Promotions
• Marketing campaigns
• New products
• Licensing Processes
99
2. Automate Handoffs 2. Automate Handoffs
• Eliminate manual handoffs between ERP & CRM applications
• Integrate you Operations Application into ERP & CRP applications
• Minimize impacts along value chain• Sales Operations
• Order Entry
• Fulfillment
• Product Management
• Marketing
• Operations
1010
3. Enable self-service3. Enable self-service
Create usable web interface for license support activities– Track & Manage
Entitlements– Renewals– Returns – Rehosts – Merge
Help customers – Track what they bought– Stay in compliance
1111
4. Make licensing invisible4. Make licensing invisible
Create an end-user experience that enables “hands-free” license activation– End users should not
know about licenses– Customers just want to
order, install and use– Turn on software without
customers knowing they received a license
1212
5. Track license & entitlement histories5. Track license & entitlement histories
• As licenses generate, accumulate & report on customer purchases • What versions customers
actually install?
• Which customers have Product A, version 6.5?
• Which platforms are most in use?
• What have they bought vs. what have they installed?
• Maximize revenues from renewals and upgrades
1313
AGENDAAGENDA
Operational Challenges
5 Best Practices
Case Studies
Why Automate Your Operations Application
Q & A
1414
OPERATIONS MODULE ENABLES WEB OPERATIONS MODULE ENABLES WEB BASED SELF-SERVICEBASED SELF-SERVICE
Self-service for end users and channel partners to:
• View entitlements• Activate licenses• Manage license
changes• Returns• Rehosts
• Manage entitlement changes
• Transfers• Splits• Merges
1515
TRACK AND AUTOMATE TRACK AND AUTOMATE RENEWALS AND UPGRADESRENEWALS AND UPGRADES
• Track expiring licenses:– by date– by customer,– by product &
version• Automate renewal
and upgrade processes
1616
macromedia MAKING LICENSING INVISIBLEmacromedia MAKING LICENSING INVISIBLE
Publisher
Enterprise Customer
Software
Operations Application
Activation request
License
1717
CASE STUDYCASE STUDY
Business Challenge
Streamline electronic licensing operations while…
…supporting channel-centric selling model…
for Internet appliance and Network Management software
Solution
Operations Module automates license lifecycle processes: Demo/Evals Synchronizes orders from SAP Web self-service activation,
return/rehost of licenses
Automates upgrade e.g. more seats for same product
Synchronizes Vantive (CRM) installed base
Benefits
Minimize costs:
–license activation costs via self-service & SAP integration
–support costs for return/rehosts via self service
–IT costs to adapt systems and processes Maximize revenues:
– by pricing and packaging what customers want to buy
–upgrade revenue (e.g more seats of same product)
1818
HOW IT WORKSHOW IT WORKS
FLEXnetPublisher
Operations Module
Installed base records
Orders
Self-service
1919
VPOperations
Marketing
Sales
Customer Support
Fulfillment
InsideSales
IT
SELECT CUSTOMERS WHO AUTOMATE OPERATIONSSELECT CUSTOMERS WHO AUTOMATE OPERATIONS
2020
AGENDAAGENDA
Operational Challenges
5 Best Practices
Case Studies
Why Automate Your Operations Application?
Q & A
2121
Cost savings
Upsell & Renewal revenues
LOWER IT COSTS & INCREASE PRODUCT LOWER IT COSTS & INCREASE PRODUCT REVENUESREVENUES
Financial BenefitCapabilities
Bottom Line Impact
Fulfillment costs
Support costs
Track upsells and renewals
InsideSales
IT costs Current Costs
Reduced Costs
Revenues from new packages
One stop solution –maximize revenues from & lower costs for changing packaging/licensing
IT
Sales, Marketing
Automate 100% of license lifecycle (activate, return/rehost, update, upsell/renew)
Fulfillment, Support
Support
Fulfillment
2222
OPERATIONS APPLICATION: STREAMLINED & OPERATIONS APPLICATION: STREAMLINED & SYNCHRONIZED. SYNCHRONIZED.
VPOperations
Marketing
Sales
Customer Support
Fulfillment
InsideSales
IT
2323
IMAGINE…Complete!IMAGINE…Complete!
Accomplished: – 30 Products in 30
Days
Go home early:– Have fun!