While many software companies are native SaaS businesses, a large number of enterprises that have been around for decades—from Adobe to PTC and Symantec—are just recently starting to make the transition from products to services.
This shift to subscriptions leads to more predictable revenue streams through long-term buyer relationships. But making the shift can be a real challenge.
Over the years, we’ve worked with over 1000 customers, ranging from large Fortune 500 enterprises to SaaS companies to leading consumer brands. In this time, we’ve learned that the leaders who successfully transform their businesses have four things in common:
o New revenue streams. They’re able to launch new revenue streams with new products and pricing strategies
o Customer-centric. They’re focused on designing a great customer experience while automating the downstream impacts of those customer events
o Data-driven. They use data to drive decisions and uncover new opportunities
o Consolidated IT architecture. They consolidate their IT ecosystem to streamline processes and bring new products to market faster
Let’s take a closer look at the inherent problems that hold traditional software companies back from successfully making the shift, and how to master the four keys to software enterprise transformation.