{"id":2261,"date":"2020-02-17T02:17:44","date_gmt":"2020-02-17T02:17:44","guid":{"rendered":"http:\/\/kusuaks7\/?p=1866"},"modified":"2024-01-10T12:00:25","modified_gmt":"2024-01-10T12:00:25","slug":"saas-companies-have-untapped-platform-potential","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/bigdata-cloud\/saas-companies-have-untapped-platform-potential\/","title":{"rendered":"SaaS Companies Have Untapped Platform Potential"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2261\" class=\"elementor elementor-2261\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-3df998ca elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-eae-slider=\"72122\" data-id=\"3df998ca\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2b8debfb\" data-eae-slider=\"27559\" data-id=\"2b8debfb\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-c1e26ef elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-eae-slider=\"93431\" data-id=\"c1e26ef\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-bc9ce59\" data-eae-slider=\"41043\" data-id=\"bc9ce59\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e06a878 elementor-widget elementor-widget-text-editor\" data-id=\"e06a878\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center;\">Sales force concept. Businessman think about sales force team.<span style=\"background-color: rgba(0, 0, 0, 0.05);\">GETTY<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-49b8ab0 elementor-widget elementor-widget-text-editor\" data-id=\"49b8ab0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tSaaS is a well-known and highly proven business model.\u00a0It has expanded across industries and there are many types of SaaS business models. Some serve consumers directly while others use a channel partner to go to market.\u00a0This model, however, allows these channel partners to \u201cown\u201d the customer relationship and data, one of the most valuable parts of any business.\u00a0Many SaaS are now finding that they need to establish a direct branded relationship with the end-customers, which gives the firm greater control and optionality.\u00a0Here\u2019s what the original model looks like:\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a192f81 elementor-widget elementor-widget-image\" data-id=\"a192f81\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/specials-images.forbesimg.com\/imageserve\/5e18f03aa854780006e847a8\/960x0.jpg?fit=scale\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-331becc elementor-widget elementor-widget-text-editor\" data-id=\"331becc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center;\">Common SaaS business Model\u00a0<span style=\"background-color: rgba(0, 0, 0, 0.05);\">AIMATTERS<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bdb526f elementor-widget elementor-widget-text-editor\" data-id=\"bdb526f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThe new ecosystem diagram, demonstrating a modern business model, puts the SaaS player at the center of the network where they can establish brand and value with each of the other constituents.\u00a0This shifts SaaS from a single directional digital software business, to a multi-sided platform business.\u00a0The kind investors love.\u00a0This requires SaaS companies reinterpret the relationships with each constituent and view them all as customers with needs that can be served through the network\u2014both the channel partners they know well, and the end customers they have likely never thought about. Further, the SaaS company will have to balance the relationships\u2014to build connections with end users without subverting the channel partners.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a648665 elementor-widget elementor-widget-image\" data-id=\"a648665\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/specials-images.forbesimg.com\/imageserve\/5e18f06a735f8c0007999906\/960x0.jpg?fit=scale\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8f35f05 elementor-widget elementor-widget-text-editor\" data-id=\"8f35f05\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center;\">Network Model for SaaS Companies\u00a0<span style=\"background-color: rgba(0, 0, 0, 0.05);\">AIMATTERS<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0488169 elementor-widget elementor-widget-text-editor\" data-id=\"0488169\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThe transition to a multi-sided business model is difficult and rife with pitfalls.\u00a0Over the last 20 years we have helped many companies with this transition, and we have found that there are some common challenges companies encounter as they seek to shift their business model.\u00a0Because business model affects every part of the organization, companies need to shift broadly, including changes to:\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-072e7b2 elementor-widget elementor-widget-text-editor\" data-id=\"072e7b2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul>\n \t<li aria-hidden=\"true\" data-nosnippet=\"true\">The expressed strategy of the leaders.<\/li>\n \t<li aria-hidden=\"true\" data-nosnippet=\"true\">The actions and capital allocations of the company.<\/li>\n \t<li>The skills of the people.<\/li>\n \t<li>The KPIs that the company uses to keep itself on course.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e8a48bd elementor-widget elementor-widget-text-editor\" data-id=\"e8a48bd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tOften, a SaaS company that serves other businesses will want to transition to a platform business model that directly touches to the end-customers or consumers that have previously been served only by the channel partners.\u00a0This is an important but risky shift, and there are several implications:\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-db53e06 elementor-widget elementor-widget-text-editor\" data-id=\"db53e06\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul>\n \t<li>It is likely that any sort of subscription fee paid by the channel partners will be\u00a0reduced to zero over time to eliminate all friction so that the maximum number of these types of partners are encouraged to join the network, bring their customers while continuing to bring added value to the network.<\/li>\n \t<li>For end-customers or consumers, convenience and cost are likely the two most important drivers and so SaaS companies that reach directly to consumers need to make sure that these values are delivered to the end-customers as part of this process.<\/li>\n \t<li>Using Uber as an example, the network of vendors (and other businesses) will often become the SaaS\u2019s companies\u2019\u00a0most valuable assets and keeping them happy will be critical to their long-term survival.\u00a0Established platforms are hard, but not impossible to topple.<\/li>\n<\/ul>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3d38121 elementor-widget elementor-widget-heading\" data-id=\"3d38121\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">\n<h3><strong>Restructuring Relationships<\/strong><\/h3><\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-45ad7d8 elementor-widget elementor-widget-text-editor\" data-id=\"45ad7d8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tFrequently, smaller SaaS companies have created a legacy of special agreements with either customers, resellers, or suppliers as they built their business.\u00a0For example, it may be exclusivity or a \u201cwhite label\u201d relationship.\u00a0And in almost all cases, the SaaS company is effectively invisible to the end user or consumer served by their channel partners.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-469ebe7 elementor-widget elementor-widget-text-editor\" data-id=\"469ebe7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tTo achieve today\u2019s most valued status (the platform unicorn), SaaS companies need to begin to think about their business not just as B2B but also B2C.\u00a0And the restructuring of relationships it the single largest challenge of the change. It will require specialized sales and marketing skills that tune the company\u2019s offerings to meet the needs of each member of the network simultaneously.\u00a0This requires artificial intelligence.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-11e18db elementor-widget elementor-widget-text-editor\" data-id=\"11e18db\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tTo be clear, this reorientation requires that a unique value or sales proposition must be created for each member that is attractive enough to encourage that member, normally a business, to allow the SaaS company to begin to serve the end-customer directly.\u00a0This process of changing focus requires developing a complete understanding of every member of the ecosystem.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-feea415 elementor-widget elementor-widget-text-editor\" data-id=\"feea415\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\nEach member business wants to grow, and the SaaS company must frame the value that they can deliver as one that can help the member business achieve that growth.\u00a0In essence, the SaaS company must create a customized sales pitches for each member of the ecosystem.\u00a0In addition, these members will often use an internal consensus process to make major purchase decisions, thus leading to the need for a separate sales pitch for each department within a member company, framing the value to be relevant to the department\u2019s unique needs within the context of the member company\u2019s strategy.\u00a0Trial sales and validation are an essential part of the process.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3da6f3a elementor-widget elementor-widget-text-editor\" data-id=\"3da6f3a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tTo be successful, the SaaS company\u2019s current go to market models with specific constituents needs to be modified so that it is clear to the current customers why they would be willing to turn over their customers to the new platform organizer.\u00a0Transaction models need to be changed to be consistent with the broader goal of attracting a maximum number of the ecosystem members into the network.\u00a0For example, replacement of subscription fees with transaction fees.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-efa42ab elementor-widget elementor-widget-text-editor\" data-id=\"efa42ab\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThere are five actions that help with this transition.\n<ol>\n \t<li><strong>Reframe the conversation of the board and leaders\u00a0<\/strong>which will help to reposition the company with the investment community to be seen as a modern business model.<\/li>\n \t<li><strong>Inventory the entire ecosystem and the firm\u2019s capabilities and needs\u00a0<\/strong>to deeply understand the firm&#8217;s assets and the customers\u2019 needs.<\/li>\n \t<li><strong>Validate all the requirements and offers.\u00a0<\/strong>Transitioning to a central network for an industry will increase the number of transactions by one or more orders of magnitude.\u00a0Often the infrastructure of the SaaS provider will not be able to handle the additional load.\u00a0The company will need to consider retooling their software with performance requirements in mind.<\/li>\n \t<li><strong>Organize around the new capabilities<\/strong>:\u00a0In most cases, the SaaS company has been able to grow by focusing on one type of customer, possibly a business (B2B) or a consumer (B2C).\u00a0Serving a central network role in an industry will require development of new marketing and sales skills.\u00a0Essentially, the company will be running multiple simultaneous marketing and sales programs, each tailored specifically to the category of company or consumer that is a member of the network.\u00a0Each must be understood in detail, so that a compelling value can be offered, proper media channels can be used, and deals are structured in ways that are acceptable.\u00a0This transition will imply the need for other new skills as well.\u00a0If the transition is successful, one will require M&amp;A capabilities for continued growth.<\/li>\n \t<li><strong>Track new KPIs to reinforce the new business model:\u00a0<\/strong>Many of the long-term benefits to the company and the values that it can deliver to ecosystem members of the network are rooted in the data that can be aggregated and analyzed.\u00a0This implies the need to both collect and analyze large unstructured amounts of data that are often accumulated without a clear understanding of how it will be eventually used.\u00a0Contemporary Artificial Intelligence (AI) methods, or machine learning, can be used to look for correlations and insights within data that become the eventual strength of the company in its newfound position.<\/li>\n<\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-19aaef5 elementor-widget elementor-widget-text-editor\" data-id=\"19aaef5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tTransitioning to a modern business model can be the only route to survival in an increasingly competitive environment driven by technology.\u00a0First mover advantage can be critical to success.\u00a0However, this is not a simple transition and there are difficult roadblocks.\u00a0Understanding those barriers can help you prepare for the challenge ahead.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b9145da elementor-widget elementor-widget-text-editor\" data-id=\"b9145da\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThe steps above will assist you in gaining a better understanding of your current business model, and its limitations and then visualizing a long-term objective model that can be reached to create a better and more valuable version of your organization.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0b796ea elementor-widget elementor-widget-text-editor\" data-id=\"0b796ea\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThis article was coauthored by\u00a0<a title=\"https:\/\/www.linkedin.com\/in\/bob-caspe-97330\/\" href=\"https:\/\/www.linkedin.com\/in\/bob-caspe-97330\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/www.linkedin.com\/in\/bob-caspe-97330\/\">Bob Caspe<\/a>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>There are many types of SaaS business models. Some serve consumers directly while others use a channel partner to go to market.&nbsp;To achieve today&rsquo;s most valued status (the platform unicorn), SaaS companies need to begin to think about their business not just as B2B but also B2C.&nbsp;And the restructuring of relationships is the single largest challenge of the change. It will require specialized sales and marketing skills that tune the company&rsquo;s offerings to meet the needs of each member of the network simultaneously.<\/p>\n","protected":false},"author":69,"featured_media":3691,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[187],"tags":[95],"ppma_author":[1627],"class_list":["post-2261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bigdata-cloud","tag-big-data-amp-technology"],"authors":[{"term_id":1627,"user_id":69,"is_guest":0,"slug":"barry-libert","display_name":"Barry Libert","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Libert","first_name":"Barry","job_title":"","description":"Barry Libert is the co-founder of AIMatters, an AI startup serving the C-Suite with the first AI powered strategy platform. &nbsp;He serves on a number of boards and advises CEO of startups and large enterprises on becoming AI-first companies. He also co-wrote The Network Imperative: How to Survive and Grow in the Age of Digital Business Models published by HBR.&nbsp;"}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/2261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=2261"}],"version-history":[{"count":4,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/2261\/revisions"}],"predecessor-version":[{"id":35442,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/2261\/revisions\/35442"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/3691"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=2261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=2261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=2261"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=2261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}