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Success in the digital economy requires that organizations move beyond traditional ways of doing business while
accelerating market-facing responsiveness. Increasing competition and shifting market dynamics complicate
revenue predictability. Developing a Monetization Mindset™ empowers businesses to translate organizational
expertise into products and services that respond to market demand and drive profitable revenue growth.
|1| www.blulogix.com
“Monetization is how efficiently and effectively market demand is created and translated into revenue,
profits, and competitive differentiation. The process of monetization reaches across the organization;
from product development, marketing, sales, finance, billing, even into customer support. Monetization is
not a single product, but a business discipline that combines business processes, tools, and skilled human
resources to efficiently and effectively create and translate market demand into revenues, profits, and
competitive differentiation.”
- MGI Research
|2| www.blulogix.com
GETTING READY
How is the organization operating now?
Any organization setting out on the path to develop a monetization business discipline is well-served to consider their current
business operations versus the structure, processes, and activities that are needed for long-term success. The following B2B
Monetization Maturity Model will begin to map where your organization lands on a continuum of monetization activity. This
model is not intended to be a prescriptive; instead, it is designed to give you a head start on prioritizing areas of focus and iden-
tifying operational gaps before the work begins to develop a customized Monetization Framework.
Single/disconnected purchases Recurring payments / revenue Subscriptions / Bundled features "Best-of-need" feature bundling
1-to-1 Invoice to payment SaaS software offerings / Digital and plans Use Buyers' Journey and usage
relationships products Accelerate speed of go-to-market insight to create new offerings
GO TO MARKET License fees & maintenance Direct Sales with new offerings Re-engage channels / Expand
agreements Onboard and provision remotely Online Sales indirect channels
for hosted services Inbound demand generation & Focus on retention and expansion
inside sales
Call center customer service Account management portals Self-service customer Personalized customer portals /
SUPPORT
management Insight enriched
Quoting & Proposals Monthly recurring revenue Focus on customer acquisition Personalized experiences
Procurement negotiation Usage counting and rating Subscriptions Hybrid packaging and pricing
PRICING models
Cost plus Metering Bundled feature plans based on
Unit pricing product Usage intelligence
Automate processes Improve efficiency and self- Improve provisioning Align offerings with customer
DSO service Bundle product features value drivers
AR Aging Get rid of information silos Product iteration cycles Cost of revenue
PROCESS FOCUS Invoicing speed Product utility
COGS LTV
& METRICS
DSO Negative churn Churn risk
PCI Compliance Profitablity Growth & Profitability
Excel 1st Generation SaaS Billing Subscription management True multi-tenancy monetization
Software platforms
TECHNOLOGY & Premise based or hosted Revenue recognition
PLATFORMS accounting & GL Data-optimized architecture
Quickbooks
|3| www.blulogix.com
Is this the right time for the organization? What areas of the organization need to be involved?
Businesses typically undertake strategic initiatives in response to Before formulating a plan of action, it’s essential to document the
a change in conditions or shifting market forces. These “inflection “current state” of activities, processes, systems, resources, and
points” can be a catalyst for articulating a new mission or imple- outcomes. This current state analysis can then be compared to a
menting new strategies. The following are some of the common desired “future state” to identify gaps and develop a prioritized
triggers and scenarios we have observed within organizations who working plan. When developing a Monetization Framework, it is
have embraced monetization as a strategic discipline. As you review suggested that the “current state” and desired “future state” be
this list, consider which of these conditions are reflective of your or- assessed for the following areas of your business.
ganization and may signal some degree of organizational readiness. PRODUCTS & SERVICES: What do you sell? What business are
– Business Inflection - A significant change in business oper- you in? How do you set prices? Do you have a pricing strategy?
ations related to a change of ownership such as an acquisi- What the current dynamics of the broader marketplace (com-
tion, mergers, or an equity event; the introduction of new modity, growth, mature, niche, etc.)?
products or services associated with a significant ownership
CUSTOMERS: Who is your customer? How do you engage
event or change; a significant industry shift related to new
across the entire customer lifecycle (quote-to-cash-to-retain)?
competitors, resources availability, or changing regulations.
How do customers engage with your business to select and
– Changing market conditions - Changing business models
purchase?
related to the continued evolution of the digital econ-
omy, new competitors; regulatory changes affecting PROCESSES: What parts of the organization are involved in the
the customer base which drives product changes. customer engagement lifecycle? Who are the key stakeholders,
asking for features, functions, products, or services SALES & MARKETING:How do you sell? How complex is your
that you can’t currently deliver; customer churn transaction? Do you use channels or direct sales? What pricing
is higher than expected; sales are stagnating. autonomy does the sales team have related to deal dynamics?
– Executive vision - A CXO-level executive has embraced What’s involved in introducing new products?
monetization as a strategic principle and drives the
SYSTEMS: What are the technology and systems that support
change; a desire to grow faster necessitates a shift in
your entire customer engagement lifecycle from marketing to
business operations; key stakeholders are pressing busi-
retention, including ongoing transaction and revenue manage-
ness leadership to drive change and impact results.
ment?
Who will be your Monetization Champion? DATA: What data sources are currently part of your monetiza-
Developing a Monetization Mindset relies heavily on the creation tion activity? Is there an opportunity for new monetization by
of a knowledge culture that’s attuned to customers’ needs and using data differently? Where is data coming from? Where is the
focused on creating new offerings that drive growth. Strategic data needed? What are your organizational capabilities regard-
initiatives have an exponentially higher chance of success if a single ing data storage and management?
point of contact is responsible for overseeing the formulation and (Each of these topics will be explored in detail in the following section. )
implementation of related activities and projects. To that end, the
Monetization Champion is an individual designated within the or- SUCCESS CHECKLIST
ganization to be a central point of expertise, coordination, and com- ¥¥ We have considered the current state of or-
munications related to monetization. The Monetization Champion ganizational Monetization Maturity
acts as a change agent and facilitator to assist with activities that ¥¥ There are clear strategic drivers or events sig-
span the entire organization. In an ideal scenario, this person will be naling organizational readiness
a CXO-level individual or have cross-functional credibility resulting ¥¥ The initiative has CXO-level involvement AND attention
from formal appointment as the Monetization Champion by a CXO ¥¥ A Monetization Champion has been identi-
executive. The responsibilities of the role should be communicated fied and appointed to lead the initiative
to the entire organization, and individual performance objectives ¥¥ A project plan has been created to manage the process
of capturing and documenting the “current state” of key
for the Monetization Champion should have related monetization
areas and generating “future state” requirements.
components.
|4| www.blulogix.com
GAP ANALYSIS
The following section provides detailed insight to assist with
PRODUCT & SERVICE PORTFOLIO
documenting the “current state” of organizational activities. Description:
For each area of review, there is a brief description and ra- What do you sell? What business are you in? How do you set prices?
tionale for reviewing each area, suggested monetization-re- Do you have a pricing strategy? What the current dynamics of the
lated questions for exploration and discussion, and a list of broader marketplace (commodity, growth, mature, niche, etc.)?
Product strategy is key to understanding go-to-market require-
documentation that may need to be created (or assembled
ments as they relate to monetization.
if already existing) to provide a comprehensive picture of
existing monetization activity. Exploration & Discussion:
The questions in each section offer an opportunity not only What are our current offerings?
to examine current activities but also to begin exploring the What’s our revenue cycle by product or service of-
desired “future state” of monetization as it relates to overall fering. Is there commonality or complexity relat-
strategic objectives. These questions should be the starting ed to your product portfolio monetization?
point to facilitate conversations and interviews throughout Would our revenue processes be defined as simple or complex?
the gap analysis process. You may wish to adapt these ques- Where is there opportunity in the market? What are the key
tions for your business. drivers of future opportunity? How does the market oppor-
tunity tie to strategic goals and monetization objectives?
- MGI Research
|5| www.blulogix.com
BUYERS & CUSTOMER PROFILES CUSTOMER ENGAGEMENT PROCESS
Description: Description:
Who is your customer? How do you engage across the entire What parts of the organization are involved in the customer
customer lifecycle (quote-to-cash-to-retain)? How do customers engagement lifecycle? Who are the key stakeholders, processes,
engage with your business to select and purchase? Monetization inputs, and measures? The customer engagement lifecycle is the
processes that are influenced by customer insight are yield more heart of your monetization activities.
relevant decision data and drive revenue growth.
Exploration & Discussion:
Exploration & Discussion: What happens between the time we provide a price quote/
Who is our ideal customer? Can we demonstrate pricing information and the collection of the first payment
who our most profitable customers are? from a new customer? Also known as Quote-to-Cash
What is the length of our average customer relationship? Can What areas of the organization play a role (no mat-
we measure the lifetime value of our customer relationships? ter how small) in this Quote-to-Cash cycle?
Is churn a concern for our business? How do we mea- What are our operating metrics relat-
sure churn? What is the cost of churn? At what point ed to the Quote-to-Cash cycle?
in the lifecycle of a customer are we most at risk for How is billing currently managed? Does this differ by
churn? What opportunities does this signal? product line, customer type, or some other variable?
How have our customer needs changed in How does the Quote-to-Cash process change with
the past year, three years, or 5 years? each variation? Why do these variations exist?
What is changing for our custom- How do we collect payments and report the associated
ers that could signal future needs? revenue? How does this impact our Quote-to-Cash activities
What is the basis for how we charge customers? What other points of engagement happen outside
Is there a way to align this more with how cus- the Quote-to-Cash process - such as support, profes-
tomers assess the value of our solution? sional services, account management? Map these pro-
cesses as they relate to the Quote-to-Cash cycle.
What is the experience for our customers from the time that
they identify a need and choose our products/ services? What issues do we currently have related to quoting,
billing, payments, invoicing, provisioning, on boarding
What is the onboarding and provisioning experience?
or other key stages in the Quote-to-Cash process?
Do we use customer touchpoints after the sale to in-
Are any third-parties involved in our Quote-to-Cash process?
crease relationship or revenue opportunities?
What are their roles and our dependencies on their activity?
Are we using intelligence about product/ser-
vice usage to identify new opportunities? Artifacts & Checklist:
WW Quote-to-Cash Process Map with details about stag-
Artifacts & Checklist:
es, activities, resources, issues, opportunities
WW Buyers’ Journey Map
WW Process dependency maps for Quote-to-Cash
WW Customer churn and retention data
WW Systems map showing Quote-to-Cash dependencies
WW Revenue by customer and product lines with trend data
WW Manual versus automated process maps
WW Anecdotal data related to customer engagement challenges
WW Process gap/issues documentation and resolution alternatives
WW Customer survey data
|6| www.blulogix.com
SALES & GO-TO-MARKET SYSTEMS & TECHNOLOGY
Description: Description:
How do you sell? How complex is your transaction? Do you use What are the technology platforms, systems, and software applica-
channels or direct sales? What pricing autonomy does the sales tions that support your entire customer engagement lifecycle from
team have related to deal dynamics? What’s involved in introduc- marketing to retention, including ongoing transaction and revenue
ing new products? Sales processes and introducing new offerings management? A comprehensive monetization technology platform
affect monetization complexity and process requirements. will support the process and information of your monetization
strategy.
Exploration & Discussion:
How do we decide on pricing? Have we tested different Exploration & Discussion:
pricing strategies? What works, what doesn’t and why? What systems are key to our customer engagement lifecycle?
What autonomy does the sales team have concern- What constraints do we have related to sys-
ing pricing and negotiation? How are sales pric- tems, both purchased and built in-house?
ing changes handled at the billing level?
Are there regulatory requirements that impact our systems?
How does our pricing affect the way we col-
What technology investments have been made
lect payments & revenue?
that are fixed/unchangeable, why?
Are there external pricing drivers that im-
What technology investments have reached their
pact our ability to offer pricing flexibility?
“end of life” or are currently not supported?
How are new offerings presented to customers?
Where are we lacking systems and using manual workarounds?
When a new offering is created how do we determine pricing?
What reporting tools are we using? Do we have
When a new offering is created what’s in- the information we need and is it timely?
volved in setting up billing and payments?
Do key stakeholders in the Quote-to-Cash process have
Does our billing capability enhance or lim- access to the information and functionality that they need?
it our pricing flexibility?
Are there investments we have made in technology
Do we have indirect or third-party channels that use which is abandoned or lost due to organizational or sys-
our pricing or collect revenue on our behalf? tem issues? Do any of these impact Quote-to-Cash?
Do we have commission or revenue sharing process- What systems integration issues do we have?
es that impact our billing and invoicing activities? Can data move between systems easily? Where
Are there current product development objec- are the gaps in our information flow?
tives that are blocked due to operational issues? Our primary system of record for customer information is...?
WW - Channel and agent revenue sharing agreements - CRM - Rating & Metering
WW - Industry pricing surveys - ERP - Payments
WW - Product development road map and timeline - Order Management - Channel Management
WW - New product launch process map - includ- - Ticketing - Commissions
ing Quote-to-Cash dependencies
- Provisioning - Customer Support
WW - Indirect channels Quote-to_Cash process map with depen-
- Inventory - Web Portals
dencies and overlap with the organizational map
- Invoicing
|7| www.blulogix.com
NEXT STEPS:
WW Detailed System Inventory for Quote-to-Cash including
solution name, investment date, licensing terms, environ-
ment, process impacts, functional ownership, issues, etc.
DRAFT THE FRAMEWORK:
WW Third party systems map (with process dependen-
Once your organization has completed the review of your key
cies) and detailed listing (payment gateways, tax en-
operations, processes, systems, and activities – as outlined
gines, shipping, channel partners, etc.)
above – the organization will have the necessary information
WW Functional specifications for emerging systems requirements to create a draft Monetization Framework. You can download
and goals for new technology platforms (What needs to be
the BluLogix template for a Monetization Framework from our
fixed, replaced, supplemented? Which processes will be im-
website or create an outline that works for your organization to
pacted? Who are the users/roles/responsibilities? etc.)
compile your findings.
Where does this data come from? Where is key data stored?
Where do we have gaps in our customer, revenue and billing worth considering whether or not to engage an external mon-
information? Where does this information exist, if at all? etization authority to help with facilitation and development
of the Monetization Framework. External facilitation can help
Are there opportunities to provide new custom-
keep a project on track from a focus and bandwidth perspec-
er value if we had different data or insight?
tive. External facilitation also injects third-party objectivity into
Do we have an organizational data strategy?
the process and may spur fresh thinking about challenges and
issues. A third-party may also be able to spot potential pitfalls,
Artifacts & Checklist: while also offering benchmark data and anecdotal case studies
about the monetization initiatives of other organizations.
WW Data flow map showing Quote-to-Cash process dependen-
cies (inflows and outflows, internal and third-party systems)
|8| www.blulogix.com
GOOD LUCK AS YOU EMBARK ON CREATING YOUR MONETIZATION FRAMEWORK.
SHOULD YOU HAVE QUESTIONS, PLEASE DON’T HESITATE TO GET IN TOUCH
WITH THE BLULOGIX TEAM. WE’D BE HAPPY TO EXPLORE HOW WE CAN HELP
YOU WITH ANY ASPECT OF YOUR MONETIZATION INITIATIVES - INCLUDING THE
DEVELOPMENT OF YOUR MONETIZATION FRAMEWORK. PLEASE VISIT OUR WEBSITE
TO LEARN MORE ABOUT OUR MIND METHODOLOGY™ APPROACH TO SERVICES AND
OUR DATA-ENRICHED MONETIZATION TECHNOLOGY PLATFORM BLUIQ.
If you are ready to start working on monetization initiatve for your organization, it’s time to get to know BLUIQ.
The BLUIQ Platform, powered by BluLogix, is engineered to identify and address the full continuum of B2B
monetization requirements including, billing; product, service, and catalog management; go-to-market activ-
ities; on-boarding & provisioning; customer engagement; and advanced analytics. And because BLUIQ is the
only true multi-tenant, SaaS monetization platform in the market today we can deliver solutions for complex
business requirements where other vendors have failed.
We think differently. Our platform doesn’t stop at just delivering the best billing functionality. We go beyond billing to enable your business
with data-enriched monetization. In short, this means that our proprietary technology approach optimizes data differently to close efficien-
cy gaps, deliver true automation, generate customer insights, and adequately address the needs of complex B2B revenue models.
We like to listen. You’ll notice from your first interaction with our team that understanding your business is our primary goal. Even our sales
process is different. We won’t rush to show you a demo of BLUIQ until we fully understand what issues your business wants to address.
And because we have a true multi-tenant solution, we can show you a demo environment tailored to your needs. No more wondering if the
solution will really work in your business environment - we will prove to you that it can.
We love complexity. Our data-centric architecture enables BLUIQ to manage a broad variety of billing and revenue scenarios from simple sub-
scription billing, to hybrid usage and flat fee scenarios, to complex indirect channels, commissions and revenue models. We support intricate
parent/child account hierarchies and extensive integrations with external systems.
We deliver results. Since 2013 we have been providing sophisticated billing and monetization solutions for 100+ satisfied clients. Our success
rests on our commitment to fully understanding your business needs. From the start of our sales process and throughout implementation
and beyond, our team of monetization experts is committed to addressing your business needs and empowering your business with a plat-
form to drive growth. And because we believe so firmly in our ability to create a positive impact for your business, we are the only vendor to
offer “shared upside” pricing that scales based on your growth.
BluLogix helps businesses in the digital economy frustrated with billing, aggregate data
to automate processes, generate new customer intelligence, and revolutionize growth.
Founded in 2013, BluLogix delivers BLUIQ - the only true multi-tenant SaaS monetiza-
tion
| 9 |platform in the market. Our proprietary technology and data-enriched monetiza-
+1 443.333.4100
www.blulogix.com
tion approach has helped 100+ companies get beyond billing and focus on identifying info@blulogix.com
value-aligned relationship and revenue opportunities. www.blulogix.com