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Business Transformation in the Subscription Economy (Accelerate East)

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Neopost

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Business Transformation in the Subscription Economy (Accelerate East)

  1. 1. Business  Transforma5on     in  the  Subscrip5on  Economy   Nicholas  von  der  Wense   1 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  2. 2. Why  I  am  here….     •  In  “tradi*onal”  business   •  Bureaucra*c  &  hierarchical   •  30%+  growth  drives  our   transforma*on   •  Happens  to  be  in  SoBware  (as  a   Service)   •  Senior  Execu*ve  said  so   2 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  3. 3. Neopost     $1.4  Billion  Global  Revenue   Paris  Based   800,000  Customers   90  Countries  Sold  to   29  Countries  Direct  Opera5ons   6000  Employees   35%  Market  Share  in  Europe   65%  Market  Share  in  France   SAP  ERP     3 3 USA  50%  of  Revenue   400,000  Customers   30  Direct  Market  Opera5ons   1600  Employees   20%  Market  Share   Oracle  ERP   Zuora confidential, shared under non-disclosure and subject to disclaimer notice Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  4. 4. 20%   Mail  Volume  Decline  in  the  USA   213  Billion   172  Billion   4 4 •  From  2007  to  2013   •  Mail  declined  20%   •  Neopost  Revenue  has          Grown  20%          (Same  Period)   Zuora confidential, shared under non-disclosure and subject to disclaimer notice Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  5. 5. What’s  our  Core  Business?   Strategy;  Op5mize  and  Grow  Organic,   single  digit     •  Mailing  solu5ons   •  Equipment  and  services  is  our  Core,   tradi5onal  business   5 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  6. 6. What’s  our  Growth  Business?   Strategy:  30%+  Growth,  Acquire,   Leverage  Core  &  Install  Base     •  Customer  Informa5on  Management   •  Communica5on  and  Shipping   Solu5ons     6 Measure  both  Core  and  Growth  internally  and  publicly   (Do  b non-disclosure and subject Zuora confidential, shared under oth  at  once)  to disclaimer notice
  7. 7. What  Led  us  to  Our  Transforma5on   Goal  of  Leveraging  Core  &  Installed   Base,  Cross-­‐Selling  SaaS  Applica5ons       How  do  you:   •  Pay  a  Hardware  rep  on  a  sogware  subscrip5on   •  Recognize  the  revenue   •  Change  the  customers  subscrip5on  on  the  fly?   •  Drive  Adop5on  of  the  subscrip5on?   •  Get  everyone  to  agree!?     7 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  8. 8. Decisions  &  Lessons  Learned   •  IT  and  Marke5ng  are  now  on  the  same  team   •  Communicate  clearly  even  if  you  are  not  sure  you   are  sure   •  Use  an  employee  engagement  or  Change   management  program   •  Must  emphasize  collabora5on  and  teamwork     8 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  9. 9. Why  We  Chose  Zuora   •  Did  not  want  to  build  capability  (not  our  core   competency)   •  Oracle  is  inflexible  when  it  comes  to   Subscrip5ons   •  Need  a  tool  that’s  easy  to  use,  scalable  &  flexible     •  Integrates  directly  to  our  Salesforce  CRM   •  Need  to  support  pricing  flexibility  for  future   growth   9 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  10. 10. What  We  Decided   •  IT  and  Marke5ng  are  now  on  the  same  team   •  Communicate  clearly  even  if  you  are  not  sure  you   are  sure   •  Use  an  employee  engagement  or  Change   management  program   •  Must  emphasize  collabora5on  and  teamwork     10 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

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