Build vs. Buy: A New Look at the Classic IT Dilemma

1,786 views

Published on

See how CIOs can deliver the agile pricing, customer acquisition and revenue forecasting capabilities your enterprise needs to test new business models and successfully compete in a world of continuous disruption.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,786
On SlideShare
0
From Embeds
0
Number of Embeds
66
Actions
Shares
0
Downloads
31
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Build vs. Buy: A New Look at the Classic IT Dilemma

  1. 1. Slide 1 − Zuora Confidential, not for distribution beyond intended recipientSlide 1 − Zuora Confidential, not for distribution beyond intended recipient A New Look at the Classic IT Dilemma By Travis Huch Build vs. Buy
  2. 2. Confidential and Proprietary Information. Do not distribute beyond intended audience. 2 • The Disruption is here • The CIO is under pressure • Change is happening – The Five Kinds • The business case for agility in pricing • Solution components & the cloud stack • Summary and recommendations Agenda / Let’s Make this Interactive
  3. 3. Confidential and Proprietary Information. Do not distribute beyond intended audience. Disruption is Here 3
  4. 4. Slide 4 − Zuora Confidential, not for distribution beyond intended recipient CIOs Are Under Pressure 4 “We spend 80% of our budget maintaining the old legacy stuff we need to keep. We can’t just unplug it.” AND “Our only competitive advantage today is speed”
  5. 5. Slide 5 − Zuora Confidential, not for distribution beyond intended recipient The Five Kinds of Change 5 Launch Pivot Scale B2Any or Usage BasedM&A
  6. 6. Slide 6 − Zuora Confidential, not for distribution beyond intended recipient It Looks Easy to the Business
  7. 7. Slide 7 − Zuora Confidential, not for distribution beyond intended recipient Billing Gateways Fulfillment Provisioning Immediate or delayed payment Connect to CRM Notification Connect to accounting Self service vs assisted flows But it’s Harder Than It Seems
  8. 8. Slide 8 − Zuora Confidential, not for distribution beyond intended recipient The New Pricing Lifecycle The pricing lifecycle is shorter than ever before
  9. 9. Slide 9 − Zuora Confidential, not for distribution beyond intended recipient And you are layering in more services 9 • Personalization / Customization • Remote monitoring and updates • Compute and storage • Monitoring and contextual services • Collaboration and sharing
  10. 10. Slide 10 − Zuora Confidential, not for distribution beyond intended recipient All These Changes Are Too Much 10
  11. 11. Confidential and Proprietary Information. Do not distribute beyond intended audience. THE Textbook Case for Pricing Agility 11 • MCI announced The Friends and Family Plan • AT&T was unable to respond for 18 months • MCI’s revenues went up 11% while AT&T lost 8+% market share
  12. 12. Confidential and Proprietary Information. Do not distribute beyond intended audience. The Modern Example 12
  13. 13. Confidential and Proprietary Information. Do not distribute beyond intended audience. When was the last time you changed your pricing? 13
  14. 14. Slide 14 − Zuora Confidential, not for distribution beyond intended recipient Now You Know You Need to Change 14
  15. 15. Confidential and Proprietary Information. Do not distribute beyond intended audience. But What Kind of CIO Are You? 15 “We build things that are part of our core competence” “It’s a simple ROI calculation to figure build vs buy”
  16. 16. Confidential and Proprietary Information. Do not distribute beyond intended audience. The Emergence of The Business Innovator 16 “We extend and future-proof our architecture by using best of breed components”
  17. 17. Slide 17 − Zuora Confidential, not for distribution beyond intended recipient “As-Is” Solution at First Contact 17 43% of companies who elect to build commerce billing and payments come back within 2 years 49% 31% 18% 2% Commercial accounting systems Built home grown system Replacing a commercial billing system Completely mannual
  18. 18. Confidential and Proprietary Information. Do not distribute beyond intended audience. How Do I leverage what I have? 18
  19. 19. Confidential and Proprietary Information. Do not distribute beyond intended audience. The New Cloud Stack 19
  20. 20. Confidential and Proprietary Information. Do not distribute beyond intended audience. There Are Really 3 Parts of the Problem Product Catalog Pricing Web Order Sales-Assisted Order Upsell / Cross-sell Invoices Reciepts Credit Card Payment Refunds Partial Payments Balances Service Rating & Billing Secure PCI Payments Commerce Billing & Payments Finance
  21. 21. Confidential and Proprietary Information. Do not distribute beyond intended audience. 21 Plugs into your ecosystem
  22. 22. Confidential and Proprietary Information. Do not distribute beyond intended audience. 22 It all starts with the right data model
  23. 23. Slide 23 − Zuora Confidential, not for distribution beyond intended recipient Companies that Built then Bought
  24. 24. Slide 24 − Zuora Confidential, not for distribution beyond intended recipient Common Themes Post Go- Live from our Enterprises 24 We’re more agile in our approach to pricing and onboarding customers Our engineers have been deployed to things that are higher value things that are closer to our wheel house We were able to meet the deadline for launching the new SaaS product We maintain the onboarding and provisioning flows, and Zuora manages everything else “ ”
  25. 25. Slide 25 − Zuora Confidential, not for distribution beyond intended recipient Infinite pricing options Things you need to Consider before Building 1. What is the risk of building (accuracy, leakage issues) 2. Will you need to support the numbers in an audit? 3. Opportunity Cost = $600K per year in additional rev 4. What is the timeline goal that this is tied to? 5. How will this functionality need to change over time?
  26. 26. Confidential and Proprietary Information. Do not distribute beyond intended audience. Summary 26 • Most companies don’t have unique requirements when it comes to core billing and payments • Deploy dev resources on things that give you a competitive advantage and differentiation • Agility = Revenue. Ability to change pricing quickly is a requirement in today’s market • Let us provide you an assessment of what it would take to meet your use cases based our experience
  27. 27. Slide 27 − Zuora Confidential, not for distribution beyond intended recipient 27
  28. 28. Confidential and Proprietary Information. Do not distribute beyond intended audience. 28 Thank You! travis@zuora.com @travishuch Let me know if you are interested in participating in our “What is the Ideal Enterprise Architecture?” panel discussion at Subscribed 2014!

×