Moving from one business model to another requires every software vendor to evaluate how to price its solution. The emergence of new app business models and technologies such as Internet of Things (IoT) requires new business models that most organizations do not have experience in and the software market is still working on.
Converting from one business model to another is not just a change in how the solution is delivered, but it is a change in how the software vendor makes money and how it impacts every function within the organization.
Software Pricing in the App World
Software vendors are moving towards app-based development and this changes how the business model should be built. Moving from on-premises Microsoft SharePoint to Office 365 business model changes how a software vendor runs its business. Building a Microsoft Azure based app requires the software vendor to build a business model that enables it to run a profitable business. Building a Microsoft Dynamics app for CRM, AX, GP, NAV or SL requires the software vendor to evaluate how the packaging should be built and what kind of pricing can be applied to the solution..
Objectives of Pricing Workshop
TELLUS Pricing Workshop is a highly interactive three-stage workshop model. Pricing workshops focus on identify the value of the solution, identifying what the customer really expects from the solution (customer jobs) and how does that translate into pain relievers and gain creators that the customer is willing to pay for. The workshop will provide guidance on how to identity value propositions, how to rank them and how these can be converted into packaging.
Do you know the answer to following questions?
- Do you know what customer jobs your client values most in your solution? What are the pains your customer feels of not having a solution and what are the gains that your customer expects to solve with your solution?
- Do you know what market segments you are going to focus on with your solution and what personas are mostly interested in your solution?
- Do you know what your ecosystem expects from your solution and how does it related to other solutions?
- Do you know how your competition is pricing your solution?
- Do you consider pricing to be important for your channel success if channel is used to scale the sales?
- Do know how to package the solution with different tiers?
- Do you know what kind of revenue streams are possible for your solution?
- Live interviews by TELLUS representatives of the stakeholders in initiative.
- Preparation and facilitation of workshop by senior TELLUS consultant.
- Workshop summary report of pre-study, workshop and post-analysis phases.
- Value Canvas with value proposition hypothesis and value drivers.
- Business Model Canvas from an impact perspective on revenue streams.
- Education of TELLUS experiences in pricing and packaging.
- Availability to resources and access to TELLUS Academy Learning Management System (LMS).
- Day 1: Workshop with Group Breakouts and Presentations
- Industry trend discussion with vision discussion
- Value Canvas with hypothesis on value drivers from pricing perspective
- Ranking of value drivers based on emphasis on expected customer expectation
- Business Model Canvas impact of value drivers on revenue streams
- Day 2: Group Breakouts and Presentations
- Financial Viability
- Ecosystem Potential
- Key Activities
- Pre-workshop interviews and materials review
- 2-day on-site interactive workshop
- Post-workshop summary report and presentation of findings
- Summary of pre-study phase
- Workshop findings and decisions made
- TELLUS senior consultant analysis and recommendations
WHAT WE OFFER
We conduct ongoing ecosystem research for our clients to validate software product development plans and to ensure marketing and sales efforts are targeted to the right market segment.
We provide advisory services for software vendors and system integrators. Our long experience in working with hundreds of organizations and developing tens of solutions provides a solid background for our advisory services.
We provide different types of business workshops based on the need. We keep building new workshops based on the market need.
Our business execution packages are built based on TELLUS long experience in brining success to its clients in different go-to-market execution phases.
We have worked with Microsoft field organizations globally on different initiatives. Besides Microsoft, we work with independent software vendors (ISVs), system integrators, managed service providers delivering different types of educational solutions.