Are you ready for THE Monetization Playbook for Software Digital Transformation?
For today’s Enterprise software companies, the question isn’t whether or not you have to shift to SaaS...it’s how. McKinsey, IDC, Gartner -- they’ve all been sounding the alarm for 10 years. As Gartner has noted, by 2020, more than 80% of software vendors will change their business model from traditional license and maintenance to subscription and flexible consumption. You know the storyline, but what you don’t know is how to navigate or adopt this trend.
That’s because, while transformation is inevitable, there are many different strategies to get you there. And not to make it even more difficult, but there’s no one-size-fits-all approach to transformation. Regardless, the pressure is on to do it right. According to research from the Forbes Global 2000, 84% of businesses fail at digital transformation -- only about 1 in 8 successfully managed the process.
Any successful monetization framework has to take into consideration your particular portfolio as well as the concepts of business transformation and technology transformation. Furthermore, you have to put more emphasis than ever on the customer experience that you need to deliver because your customers have plenty of options to choose from today.
In my work with hundreds of software companies, I’ve consistently seen patterns of behavior that result in successful transformations. This led me to the realization that there’s not really a Monetization Playbook for Software Digital Transformation -- or at least I’ve never seen one. And this is what Enterprise software leaders need.
So, over the course of this summer, I’m going to lay out for you the 5 core monetization strategies for strategic software companies. For each strategy, I’ll provide a summary, examples, typical use cases, pros, cons, and case studies.
Ultimately, this will all culminate in a actionable playbook to help you decide on your best transformation path, and outline the steps to get you on the road to transformation.
Stay tuned for the first of these strategies: #1 Repackage to Recurring, AKA SaaS Conversion.
And, in the meantime, if you have any questions about monetization, subscription metrics, or anything else related to Software/Hardware transformation, please ping me. I’d love to discuss your specific questions and use cases.