How is the strategy being implemented today, and what are the goals for the next 12 months?
Raul Moesner: Implementing the subscription strategy as part of the overarching transformation will take us three to five years. In 2019, we started laying the groundwork, which includes processes such as getting the product offering and pricing right. In order to clearly address customers in the subscription model, we have restructured our entire product portfolio into standardized and modular product packages known as “tiers.” We are currently in the process of migrating existing customers to subscription contracts with the associated benefits, and this is being well received.
We have also laid the foundations for a scalable and customer-oriented business model at the organizational level, for example by introducing Customer Success Management (CSM). The CSM team supports customers in the use of our technology for the relevant use cases and provides an outlook on the use of further and new product features. The goal is that our customers recognize the value of our continuous product optimization, make active use of it, and thereby extend their subscriptions. The CSM teams also play a coordinating role in critical support situations.
An essential part of the transformation is the communication of our strategy to the capital market. Our investors have to be convinced of the fact that we are taking the right steps toward the new business model. To achieve this, we have introduced new strategic KPIs, such as “bookings.” These represent a standardized order intake across all deployment models over a 3-year contract term. This enables a comparable assessment of sales success, regardless of the type of contract or underlying infrastructure (SaaS or On Premise).
One of the core tasks for the next 12 months is to convert relevant systems and processes. The Sales and Marketing departments will be relevant in this regard, with greater support for the “Nurturing” process and the development of smaller deals with expansion potential. The increased scalability of the entire lead-to-cash process extends into many areas of the business.
Another focus is on fostering a corporate culture that promotes cross-functional, agile collaboration on the one hand, and on the other hand, enables the end-to-end alignment of all functions with customer orientation.