Open saas business model
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the collective centre of the Belgian technological industry Scaling a business with SaaS Business model transition Philippe.Thiran @ sirris.be Nick.Boucard@ sirris.be Wim.codenie@ sirris.be
description
Transcript of Open saas business model
the collective centre of the Belgian technological industry
Scaling a business with SaaSBusiness model transition
[email protected]@sirris.be [email protected]
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Software Landscape in Belgium
Typical softwareSME’s
MostlyB2B
Mix of product and service• Product• Configuration/customization
Current business
Long sales cycles
Every customer is
different
A limited number ofcustomers
Customwork
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Scalling
Technicalscaling issues
BusinessModel issues
Customers
and offering
Customer
relationships
Partners
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Introducing business models
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A business model describes the rationale of how an organization creates, delivers and captures values (Osterwalder & Pigneur)
Micro-enterprise
Main areas of a business
Customers Offer
Infrastructure Financial
Business model as a shared & simple language
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Introducing Canvas
Who are your customers?
What do you offer?Value?Uniqueness? How to
communicate & deliver?
Automatic PersonalCommunities?
How will you make money?
What do you need to build up?
What will you need to master?What
can you outsource to whom?
What are my costs?
Customer Segments
Current situation
We serve only a small group of well-identified customers
Customers are Belgian SMEs
Scaling
How big is this segment?(20,8 million EU-27)
Do they all have the same needs?Will “one size fits all” work?
Look for homogeneous niche Segment, then focus Look for solving real problems
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Current situation
Scaling
Value Propositions
Current situation
Customization: we offer tailored solutions specific to your individual CRM/HRM needs
Convenience: we run the software for you
Scaling
Tailoring is time and labor consuming
Operating many tailored softwares is very complex
Focus on minimal viable set of features
Standard offering for everybody
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Current situation
Scaling
Channels
Current situation
Direct contactOfflinePersonal network
Scaling
These channels won’t bring in 1000’s of customers
Sticky engine: grow by keeping customers
Viral engine: word of mouth, product advertises itself
Paid engine: all forms of e-marketing
Eric Ries’ 3 Engines of Growth
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Current situation
Scaling
Customer Relationships
Current situation
Direct relationship with customers
Dedicated personal assistance: we dedicate an account manager to an individual customer
Scaling
Not scalable unless you can afford 1000’s of account mgrs!
Give up a direct relationship with customers
Move to a self-service model Automated signup, configuration,
support Community driven help desk, FAQ’s Intuitive user experience
E.g. inline training video’s
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Current situation
Scaling
Revenue Streams
Current situation
License fee + maintenanceSetup fees for software customizationsPrice negotiations
Scaling
Setup fees will go away
Several shifts:• From license fee to usage fee (pay as your go)• From CAPEX to OPEX
Cash flow issue: longer to get same income from 1 customer
Consider 2-3 price plans
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Current situation
Scaling
Key Resources
Current situation
Human resources: • Developers (software &
customization)• Sales force
Physical resource: software
Scaling
User-base and data will most likely be a bigger asset than the software itself New product and services Thorough understanding of
customers
Cloud technologies Elasticity Either own or through partners
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Current situation
Scaling
Key Activities
Current situation
Production:• Project management• Software development
Problem solving: • Requirements
analysis/customization• Account management
Scaling
Product management Analytics / metrics
Software and platform development
Operations (running and maintaining infrastructure) Devops
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Current situation
Scaling
Key Partnerships
No particular key partners Necessary to forge useful partnerships
SaaS specific services Billing Infrastructure
Ecosystem Part of a platform Cloud brokers
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Current situation
Scaling
Cost Structure
No particular structure Variable costs due to the pay-as-you-go of third-party Cloud technologies
Ideally, leverage economies of scale for certain activities like software development, marketing, etc.
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Current situation
Scaling
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How do we help companies in Belgium to scale up?
• Research on ICT technologies to scale up business models (OpenSaaS)
• The SaaS bottleneck assessment service• Identification of the bottlenecks that withhold you from scaling• Considers all elements of the business (product, technology,
market, sales, etc …)
