“Software Business with Business Software” Guest lecture 2016-01-22 Dr. Bernhard Blüthner SAL T Solutions GmbH Dresden-M ünchen-Würzburg General M anager 1
Context 2
Software Business with Business Software n SALT Solutions at a glance n What is Business Software? n Key Factors for successful Software Business with Business Software n Service Offerings (Revenue Sources) n Retail Market – typical Niche Market n SALT Solutions Offering for the Retail Market n How to make Software Products for Niche Markets n How to organise a Software Company for Business Software 3
SALT Solutions: Facts and Figures Sales Development (in Mio. Euro) Profile 52,8 Founding 06/2002 n 46,7 Locations Dresden, Hamburg, Munich, Wuerzburg n 42,6 Employees 395 (full time) 36,6 n 34,6 Equity 5,8 Mio. Euro n Equity ratio 40 percent General Managers Dr. Bernhard Blüthner n and Associates Dieter Heyde Markus Honold Software for industry and commerce Business Areas n Subsidiary WSW Software GmbH n Joint Venture KNAPP IT Solutions GmbH n 2012 2013 2014 2015e 2016p 4
Referenzes 5
What is Business Software? Business software or business application is any software or set of computer programs that are used by business users to perform various business functions. These business applications are used to increase productivity, to measure productivity and to perform business functions accurately. Subjects for Business Software are Business Processes Typical Categories of Business Software: - ERP-Software (Enterprice Ressource Management…) - CRM-Software (Customer Relationship Management…) - Controlling-Software - Planning-Software - SCM-Software (Supply Chain Management…) - Accounting Software - POS-Software (Point Of Sale…) 6
Characteristics of Business Software Decisions for business software are very important for each customer n Business software is a long-life product. More then 10 years… n Business software has a strong impact on the efficiency of business processes n Most implementations are a mix of standard and taylormade components n …Invalid without Support! n Business solutions often are “heavy weighted solutions!” Lot of money, lot of impact, lot of risk… 7
Key Factors for successful Software Business n Strategy n Business Model n Service Offering n Investment Capital n Team 8
Strategy and Business Model are important… …but may be the market knows everything better! Strategy is…. what I see when I look over my shoulder! (Dieter Ammer, former CEO of Tchibo) Feel free to modify your strategy / business model! 9
Imagine… One Fits ALL !!! The Perfect Business Software One Fits You have: ALL !!!! …the perfect idea …a first customer …a small team And you will start SOFTWARE BUSINESS WITH BUSINESS SOFTWARE! 10
Service Offering Choose Your Business Area! Business Software = Software for Business Processes n Procurement n Accounting n Controlling n Planning n Transportation Management n Sales n … n Warehouse Management Business Processes are Domain Specific. Domain = Business Area n Industry n Wholesale n Retail n Logistics Providers 11
If you have an investor (or looking for)… …and you have a great idea… …and you see a mass market … …and you think you are the first one… Try it! BUT: If you fail, so what, it was the money of the investor, not your`s. n If you succeed, …it is the company of the investor, not your`s! n 12
If you don`t have an investor… 4 Possibilities for Service Offerings with Business Software Mass 1. Platform-Based Customizing-Projects (Platforms are SAP, Microsoft Dynamics, markets Salesforce…). Partnership to the platform vendor is essential, that is the mainstream of the market today. Well structures market, many customers, many competitors. Investment only in marketing and training, references are important. Customers, 2. Software-Development (Tailormade Solutions). Very interesting, needs technological but no and business process competences as well. Sadly there is no “market”, but projects are “market” occasionally possible (“Competence Selling”). No invest, but need of “lucky chances” 3. Own products for special needs (Niche-Products, Niche-Markets). Special expertise in the niche is essential. Medium invest for the project kernel (projects helps to extend your Niche product and your skills). “Ramp Up-Customers” needed. markets 4. Professional Support (for the 3 possibilities above). Investment in training and some support tools. References needed. Selling support without project very difficult 13
Own Products for Niche Markets Revenue model (5 revenue sources) If your company has 30 employess, you have to make 3.000.000 € revenue every year! Revenue source Calculation Benefit for the customer The product itself (Standard Licence fee (flat rate, per user, Right to use the software “as is” Project software) per location…); Implementation project Daily Rate or fix project price Software vendor helps to implement the product Software Update Service Percentage rate from licence fee Conformity to law, new features Operations Support (Standby) Flat rate , depending on Service Contractually guaranteed Standby Level Agreement (SLA) times Support (Incident Management…) Hourly rate Professional support 14
SALT Solutions GmbH Business software for retail companies – our “niche market” Replenishment Planning Controlling Master Data Point of sale Forewarding Warehousing Procurement Promotions 15
SALT Solutions GmbH alexa Retail System for Omnichannel Commerce n SALT Solutions` own product for the niche market “Retail” Preferred sub domain is: n Fashion Retail n Germany / DACH n Revenue between 50m an 500m € p.a. n Pure retailers or vertical retailers n Only 150 “target accounts” in this market! very special needs; the big platform vendors can serve only with expensive customizing; but our product ca be delivered “out of the box” 15:35 16
Big Picture alexa Platform Technology - Java - Oracle - IBM Cognos - Microsoft SQL - Microsoft .net - iOS Partner Products - Checkout System - Financials - DMS - EDI 17
Business processes in retail companies – supported by alexa 18
Standardised alexa - features for individual requirements 19
Alexa RMS (central module) – look&feel 20
You can only control, what you can measure… alexa Retail Controlling System 21
Mobile components – for stores and logistics 22
Partner products – Checkout-Software for retail stores 23
Professional support – along the ITIL-Guidelines (ITIL = IT Infrastructure Library – an international standard) 24
How to implement alexa in a retail company (6…9 month) 25
Salt Solutions Product Matrix Historical growth of product matrix (Frameworks, Products, Domains) 2005 2012 2002 3rd Party Frameworks SALT-Framework SALT-Framework SALT-Framework „ Business Intelligence “ „ Business Applications “ „ Business Applications “ „ Mobile Applications “ (Microsoft, IBM) (Java-based) (Microsoft.net-based) (Apple iOS-based) 2013 2009 2007 2005 2005 SALT-Product SALT-Product SALT-Product SALT-Product SALT-Product „alexa RPS“ „alexa RCS“ „alexa RMS“ „LogBase“ „SOLO“ (Retail Planning) (Retail Controlling) (Warehouse/Transpor (Retail Core Solution) (mobile Selling, t) Buying) • alexa RMS, RPS, RCS • LogBase classic • LogBase classic • LogBase on Demand • alexa LOG (= LogBase) • LogBase on Demand • Solo Buy • SOLO Sales Domain 2 „Logistic Providers Domain 1 „Retail“ “ Domain 3 „Industry “ Sub-domains: Sub-Domains: Sub-Domains: • Fashion (Textilien) • Warehousing Providers • SAP-minded • Nonfood (Hartwaren) • Forewarders • NonSAP • Food (Lebensmittel) Consulting – Integration - Support
Some challenges, when you make own products for niche markets You need an organisation like a midsize company, also for small business software products! Management: Strategy, key accounting, human ressources, partner management… and all tasks without a competent person… n Marketing&Sales : sales force, indoor service, marketing (www, print, events…) n Product manager: Feature planning, release planning, presales consulting n Product development: software development, quality assurance (Test) n Consulting / Project Managemen t: … n Support: Hotline, incident management, n Administration: Billing, encashment, accounting, payroll… n …but on the beginning you don`t need one (ore more) dedicated persons for each of these roles… …with 30 employees you can make a good product and good profit! 27
Some challenges, when you make own products for niche markets The reference trap A customer don`t want to be the first user of a new product n You need references – the more the better n Sometimes you must “buy” a referenze – with an “unbeatable” price offer n When you have some customers, you can increase your market footprint and your product n portfolio: Old customers – new products n New customers - old products n 28
Recommend
More recommend
