Innovative Software Demands Innovating Licensing - Connected Cloud and Beyond

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1 Innovative Software Demands Innovating Licensing - Connected Cloud and Beyond Jeff Kaplan Managing Director, THINKstrategies, Inc. Laila Arad-Allan Director of Software Monetization Product Management

2 Agenda The Three Market Leadership Disciplines Today s New Realities of a Connected World Winning Leadership With Software Monetization Getting There With Sentinel Best Practices Summary 2

3 Revisiting the Discipline of Market Leaders Published 1995 Jeff Kaplan

4 New Customer Attitudes Today s Perfect Storm New Engagement Models New Technological Innovations New Business Imperatives

5 The World Is Changing Globalization Mobility Consumerization

6 Mobile Apps Setting Higher Expectations

7 Welcome to the On-Demand Generation

8 Cloud + Nanotechnology = New IoT Oppties Changing Economics

9 IoT = Merging of Two Ideas Industrial World Consumer World

10 Competing In a Digital World We re competing with digital-first attackers structured differently from us, Rich Battista, EVP of Time Inc. & President of People and Entertainment Weekly Source: WSJ - Time Inc. Plans Significant Reorganization to Generate Non-Print Revenue, 7/1/16

11 New Opportunities to Better Target Solutions

12 Marketing Moves from Subjective Art to Mathematical Science

13 Customer Experience Is the New Competitive Battleground According to a 2014 Gartner survey, 89% of marketers expect to compete primarily on the basis of customer experience by 2016.

14 Rethinking the Discipline of Market Leaders By Leveraging Cloud-Based Software Licensing Product Leadership Operational Excellence Customer Intimacy

15 Defying the Discipline of Market Leaders

16 Enabling Product Innovation

17 Improving Business Processes Better Service & Support Manufacturing & Product Design Operations & Management Sales & Marketing

18 Moving from Products to Information Services Standalone Products Business Solutions Information Services Like It or Not, You re in the Data Business Tom Davenport WSJ CIO Journal April 10, 2013

19 Redefining Businesses Comfort Services Managed Lighting Services Information Services

20 Remaining Relevant In a Marketplace Any industrial business that does not become a software business will not be relevant. Bill Ruh, CEO GE Digital

21 Key Challenge: Continuously Repackaging and Pricing Software-Enabled Digital Solutions

22 Scoring Your SW Monetization Readiness Operational Capability/ Organizational Consideration Products Policies Processes Business Programmable/ Dynamic Focus on SW Responsiveness Focus on SW Operations Agility Focus on Customer Satisfaction/Success Focus on Maximizing SW Monetization Automated/ Systematized Focus on SW Production Focus on SW Scalability Focus on Customer Self- Service/ Experience Focus on SW Measurement Standardized/ Structured Focus on SW Entitlement Focus on SW Governance Focus on Customer Retention Focus on SW Reporting Ad-Hoc/ Unstructured Focus on SW Protection Focus on SW Accountability Focus on Customer Entitlement Focus on SW Licensing

23 The Software Monetization Rays Of Sunshine In The Now Cloudy Climate Laila Arad-Allan Director of Software Monetization Product Management

24 Market Leadership Requires Proficiency in Three Disciplines Product Leadership Operational Excellence Customer Intimacy 24

25 The Software Monetization Rays of Sunshine Connected Licensing Business Intelligence Entitlement Management 25

26 Winning All Three Disciplines with Software Monetization Product Leadership Entitlement Management Connected Licensing Operational Excellence Customer Intimacy Business Intelligence 26

27 Connected Licensing Respond to customers buying and usage preferences Offer attractive business models Reach customers anywhere, everywhere, anytime Expand your market 27

28 Business Intelligence Insight into customer behavior and product usage Immediate customer feedback Plan roadmap and product innovation Create product differentiation 28

29 Entitlement Management Entire licensing lifecycle management Integrated licensing into back-office systems) Customer self servicing Back office automation 29

30 Getting There With Gemalto s Sentinel Solution Vendor Back Office Environment CRM ERP Request Access Grant Access End - Customer Billing Usage Data Shipment ESD Sentinel On-Premise LM Sentinel EMS Provision Sentinel SCL Phone Home 30

31 Getting There With Gemalto s Sentinel Solution Vendor Back Office Environment CRM ERP Billing Shipment ESD Request Access Grant Access Connected Licensing End - Customer Sentinel On-Premise LM Business Intelligence Usage Data Entitlement Provision SentinelManagement EMS Sentinel SCL Phone Home 31

32 Best Practices Have you reached the tipping point Licensing impact beyond the product Not a singular approach; variety of monetization options How will your customers benefit Agility to accommodate to various kinds of customer demands Operational efficiency needs to translate to customer experience Ensure its easy to do business with your organization 32

33 Summary Cloud licensing enables expanding a lot of SaaS benefits to traditional on-premise software Software and device vendors can capitalize on the opportunities caused by cloud disruption Software monetization can help you become market leaders 3 3

34 Thank You!