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ISV Ecosystems: the silver bullet for growth and defensibility


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Not having multiple defensible moats around your SaaS business can greatly hinder growth and lead to losing ground to your competition.

Without them, your business is likely an API accessible database in the cloud that can easily be replaced. But how do you build these moats?

-The 6 core reasons why ISV ecosystems make sense
-The 3 types of platforms to support ecosystems
-The 3 types of UI integration layers to assist ISVs that integrate
-How ISV ecosystems provide defensibility and network effects
-The challenges for your product management team as they transition to having an ecosystem
Roles required for your organization to successfully manage a thriving ecosystem

Published in: Technology
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ISV Ecosystems: the silver bullet for growth and defensibility

  1. 1. ISV Ecosystems the silver bullet for growth & defensibility a CodeScience webinar with Insight Venture Partners
  2. 2. Purpose, Agenda, Outcomes Purpose: Discuss the value and challenges of rolling out an ISV partner ecosystem Agenda: ● Why ecosystems? ● Go to market ● Technology challenges Outcomes: ● A deeper understanding of the value and challenges of building an ISV ecosystem
  3. 3. Speakers Brian Walsh CEO CodeScience Sean Hogan Sr. Director of Alliances Nintex
  4. 4. Celebrating 10 years developing products for the Salesforce AppExchange and ServiceNow Store Founding member of the Salesforce PDO program Brought 175+ ISV products to market HQ in Chattanooga, TN and San Francisco, CA 2016 SPI Best of the Best Award - #1 Professional Services Firm Only Master PDO in the Salesforce AppExchange
  5. 5. Client Success
  6. 6. Why Ecosystems
  7. 7. ● Bottom of the stack of systems ● Generally speaking a database and application stack ● Three major SoRs ○ CRM (Customers) ○ HCM (Employees) ○ ERP (Assets) ● Many others SoRs: ○ Documents: Box, Dropbox, Opentext, Google Drive ○ Contracts: Docusign, Conga, SpringCM ○ Code: Github, Bamboo, SVN System of Record
  8. 8. ● Interfaces between users and SoRs ● Traditional ○ Terminal (Mainframe) ○ PC (LANs/WANs) ○ Browser (Cloud) ● Modern ○ Chat: Slack, Messenger, WeChat ○ Mobile Devices: iOS, Android ○ Browsers: Chrome OS, Chrome, Firefox, Safari ○ Voice: Alexa, Google Home, Siri ○ TV: Fire TV, Android TV, Apple TV, Roku System of Engagement
  9. 9. Traditional Moats ● Economies of Scale ● Network Effects ● Deep Tech ● IP ● Trade Secrets ● High Switching Costs ● Brand/Customer Loyalty
  10. 10. The most defensible businesses will have multiple moats that feed each other and create a virtuous cycle
  11. 11. CRM vs
  12. 12. Chat vs
  13. 13. Code vs
  14. 14. So what is the big difference? (hint: it’s why we’re here)
  15. 15. Ecosystems as Moats SIs ISVs
  16. 16. Why ISV Ecosystems TCO Attrition Valuation Capital Efficiency Specialization Defensibility
  17. 17. Go to Market
  18. 18. Business Strategy Build Side Sell Side Extension
  19. 19. Business Model for Sell Side Free Referral Reseller
  20. 20. Sell Side isn’t a side project, you need a team Recruit & Manage Sell Market Comp Distribute & Support Product Management R&D Strategic Marketing Enablement ------------------------------------------------------------------------------------------------------->
  21. 21. Moat example Build Side Sell Side Extension
  22. 22. System of Agreement
  23. 23. Technology
  24. 24. “ ” A "platform" is a system that can be programmed and therefore customized by outside developers -- users -- and in that way, adapted to countless needs and niches that the platform's original developers could not have possibly contemplated, much less had time to accommodate. Marc Andreessen
  25. 25. The key term in the definition of platform is 'programmed'. If you can program it, then it's a platform. If you can't, then it's not. Marc Andreessen Platforms 1 2 3 “ ”
  26. 26. ● Programmatically integrate applications ● Computing resources are external ● No UI interfaces ● Not designed for humans ● The predominate point for interaction ● “Trivial” effort to engineer Level 1
  27. 27. Everyone does it!
  28. 28. ● iFrames or proxying UIs ● Code still executes externally to the SoR/SoE ● Often require Level 1 in order to process data ● Security concerns increase as access to users and sessions may happen ● “Hacks” like browser plugins can create Level 2 platforms anywhere Level 2
  29. 29. Hubspot
  30. 30. Level 3 ● Runtime environment for data, code, and UI ● Enables ISVs to deploy custom built solutions on top and/or inside of existing SoRs/SoEs ● Require at least Level 1 if not Level 2 as well
  31. 31. Really, really hard to build
  32. 32. ● Security ● Sandboxes ● Developer environments ● SDLC ● Constraints ● Integrated database environment ● Provide the full stack infrastructure for 3rd parties ● Contracting ● Education ● ... Requirements
  33. 33. ISV ecosystems are an accelerator TCO Attrition Valuation Capital Efficiency Specialization Defensibility
  34. 34. 35 Thank you!