How to Deliver App Services to Scale
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This document discusses how mobile app development businesses can scale up by adopting recurring revenue models through productized services. It notes that project-based revenue poses growth barriers due to cash flow volatility. The document recommends that businesses develop mobile application performance management (mAPM) as a service, which extends revenue from months to years through ongoing service contracts. It provides examples of tiered mAPM service levels that balance client needs and costs. The document argues that productized services help attract the right customers, reduce growth anxiety, and allow businesses to scale more confidently through stable recurring income streams.
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How to Deliver App Services to Scale
- 1. Building
- 2. Presenters on Todays Webinar Founder of Kumulos Previously Commercial Role with Large Mobile App Dev Business 15 years working with businesses to productize service offerings Head of Content Journalist and Social Media Tech industry for the last 22 years Scott “the Chair” Calonico Bob “the Content” Lawson
- 3. Today, we’ll cover… • What running a Mobile App Development Business at Scale means • Three enablers to success • Why Services are important to Scale • Secrets to Success
- 4. Backdrop Mobile App Development Business/Consultants, building apps for Enterprise, SMB’s, Start-ups and App Entrepreneurs • Results from year-long research • Talked to many, many Mobile App Development Businesses across the world. – their challenges, their approach – how they solved the problem • Common practice and secrets of their success.
- 5. The Hobbyist
- 8. Scaled Up
- 9. The Scale-ups that want to be Big Boys The Ambitious Scale up App Developer Operating at Scale
- 10. You want the bus to go faster…
- 11. ENABLERS TO SCALE UP • Good People & Scale Culture • Mature Processes & Services • Right Customers – winning and keeping … and of course the money to do it
- 12. Making the “leap of faith”
- 13. Barriers to Growth • Having the right people • When is the right time – too early… too late • Hire Anxiety – expensive • Too busy running hard • The “Pile-it-on” Approach
- 14. Starts to feel a bit like this
- 15. Enablers of Growth • Growth means capital – the cash reserves to fund a scale up – More space/bigger office (higher fixed costs) – More staff/good staff (higher fixed costs) – Bigger projects (more outlay before bills get paid)
- 16. …FINANICAL STRESS TO YOUR BUSINESS
- 17. AND Money Runs Out…
- 18. Growth Stress
- 19. Do I have the money to grow?
- 20. The Drown or Swim Challenge • Cash Reserves to see you through the lean times • 3-6 months running costs • Growth Stress • Under resourced in peak times • Over Resourced in lean times • Chase “bad projects” in lean times
- 21. The Drown or Swim Challenge Project Income TIME PROJECT #1 PROJECT #2 PROJECT #3
- 22. The Drown or Swim Challenge Project Income TIME PROJECT #1 PROJECT #2 PROJECT #3 Smooth Income Resource Crunch ?
- 23. The Drown or Swim Challenge Project Income TIME PROJECT #1 PROJECT #2 PROJECT #3 Running Costs
- 24. The Drown or Swim Challenge Project Income TIME PROJECT #1 PROJECT #2 PROJECT #3 Running Costs Profit Profit Profit Cutting into cash reserves Cutting into cash reserves
- 25. The Drown or Swim Challenge Project Income TIME PROJECT #1 PROJECT #2 PROJECT #3 Running Costs SERVICES REVENUE Running costs
- 26. The Drown or Swim Challenge Project Income TIME PROJECT #1 PROJECT #2 PROJECT #3 Running Costs SERVICES REVENUE Running costs 10x Value 1-1.4 x Value
- 27. Recurring Revenue • Fixed Cost to Time & Materials • Labor Supply • Managed Dev Teams • Transition Tech Teams (Build, Operate, Transfer) • Pre-paid hours • Reselling Services • Monthly Support Contracts
- 29. Pause for a second… • Project based revenue is the biggest barrier to growth. • Poor cashflow is THE biggest business killer. • Developers with the strongest recurring revenue grow faster. • Recurring Revenue provides the financial security and confidence to invest and upscale. • Confidence to make a step change to your business
- 30. When the needles aren’t aligned Sales OperationsCustomers
- 31. Getting the needles aligned Sales OperationsCustomers
- 32. We’ll let you into a secret…
- 33. We have seen a way to Scale your business, de-risk Growth Stress and align your Compasses
- 34. … and Attract and Keep the right types of customers.
- 35. Shhhhhhhhh
- 36. What large, successful, fast growing Mobile App Developers do…
- 37. They Productize their Service Offerings
- 38. How does this help Scale-ups?
- 39. Customers will buy. They can easily see the value
- 40. Offerings aligned to deliver the outcomes they need
- 41. Offerings Sales teams can confidently sell
- 42. Offerings that deliver long term, lasting customer relationships
- 43. That generate Monthly Recurring Revenue… To balance Project Revenue Risk
- 44. Offerings that Operational teams understand and can deliver repeatedly
- 45. Come closer… there’s more…
- 46. STAND OUT… BE DIFFERENT TALK LIKE THE BIG BOYS
- 47. What the big boys do… Mobile Application Performance Management
- 48. BUT… THAT’S JUST FOR THE BIG GUYS
- 49. Typical App Life Cycle 2-3 Years2-3 Months2-3 Weeks CREATIVE BUILD Mobile APPLICATION PERFORMANCE MANAGMENT IDEATION DESIGN BUILD TEST DEPLOY
- 50. Mobile Application Performance Management 2-3 Years Acquire Engage Retain RetireTECHNICAL APM COMMERCIAL APM Retention Hosting, Infrastructure Management, Capacity Planning Retention Crash Management and Bug Fixing.
- 51. Mobile Mobile Application Performance Management As A Service
- 52. You help your customer deliver high performance, Stable Applications… Mobile Application Performance Management
- 53. Pay attention…. this is the important bit Mobile Application Performance Management
- 54. That Attract, Engage & Retain App Users Mobile Application Performance Management
- 55. Apps that are… Fast Responsive Reliable and… Mobile Application Performance Management
- 56. Deliver the business outcome your customers need Mobile Application Performance Management
- 58. Why we see this working… • Extends Earnings from a few month to a few years • Stable relationships • Stable income stream • Reduces Growth Anxiety • Lets you plan and scale more confidently • Attracts the RIGHT type of customer
- 59. PERFECT WORLD – The PERFECT CUSTOMER • Apps are strategic • They understand this is software developed – The job is never done • They get the fact that there is – cost to build – cost to maintain – services costs – cost to continually evolve. • They have the cashflow and ongoing commitment… AND IF THEY DON’T…
- 61. The customers that kill your business Project Income TIME PROJECT #1 PROJECT #2 PROJECT #3 Running Costs Profit Profit Profit Cutting into cash reserves Cutting into cash reserves
- 63. Service Level – Match to Client Priorities 1 2 3 Right Sizing their mAPM needs
- 64. Mobile Application Performance Management 2-3 Years Acquire Engage Retain Retire 2 3 4 Retention Hosting, Infrastructure Management, Capacity Planning Retention Crash Management and Bug Fixing, 1
- 65. Right fit YOU and Right fit YOUR CLIENT Reactive Proactive Managed $ $ $ $ $ $ $ Mobile Application Performance Management ServiceLevels Maintain Acquire Engage Retain mAPM Service Stack 1 2 3 1 2 3 4
- 66. Example – Client #1 Reactive Proactive Managed $ $ $ $ $ $ $ Mobile Application Performance Management ServiceLevels Maintain Acquire Engage Retain mAPM Service Stack
- 67. Example – Client #2 Reactive Proactive Managed $ $ $ $ $ $ $ Mobile Application Performance Management ServiceLevels Maintain Acquire Engage Retain mAPM Service Stack
- 68. Example – Client #3 Reactive Proactive Managed $ $ $ $ $ $ $ Mobile Application Performance Management ServiceLevels Maintain Acquire Engage Retain mAPM Service Stack
- 69. Structure - Service Blocks and Service Levels Reactive Proactive Managed $ $ $ $ $ $ $ Mobile Application Performance Management ServiceLevels Maintain Acquire Engage Retain mAPM Service Stack $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ More Strategic Less Strategic
- 70. Pause – In Summary • Customers will buy services that help them drive the right outcome from their app • Sell these services right at the start • Position services progressive • Make them tangible/visible • Makes them attractive to many.
- 71. There is something in this…. Build Strong recurring revenue for your businessBuild Stay in touch & retain customers for longerStay in Win follow on workWin
- 72. Final thoughts… • Service offerings at different price points • Scale up/down offering to fit budget/need • Offer 3 month discounts to let them see value Or • Start low and scale up their service as their needs grow.
- 73. To help you… • Playbooks • Services Guides • Marketing Material • Past Webinars
- 74. Kumulos White-label Service Delivery Platform
- 75. Free one hour telephone consultation • Available to everyone on this webinar today. • First 5 – limited offer first come first served • Deeper dive – Fit the approach to unique aspects of your business – With your wider management team. • Contact your sales rep or email info@Kumulos.com A NO SALES PITCH GUARANTEE
Editor's Notes
- Often the instinct is to copy someone in your home town, someone you ADMIRE. Someone you want to be like and try to copy them…. I’m not sure that’s the right approach…. Stand back and think… why would someone buy from me rather than from the already big app developer…
- We’ve looked and talked to a lot of companies that are going through this scale up and these are the three common elements to success
- Too busy running hard to stop, stand back, think about how to do things differently.
- The Pile it on APPROACH – when you just keep adding more and more on top of what you have, without looking to change how you approach things.
- The things that we are regularly told by big customers – on what they needed to enable themselves to get big.
- It quickly starts to feel like this… until
- The money runs out. This is the fear that you over cook it, rack up too many fixed costs, and you run out of road and the business crashes to the ground. Do you bet the farm on building a better future or stick with what you have…
- When you say it like this, its no surprise that business owners get anxious. But you don’t want to be doing this… like this in 5 years time…. They say fortune favours the brave….. But a way to reduce the risk to growth stress would be good… wouldn’t it.
- Ultimately it all comes down to cash and cash flow…
- Keeping the business afloat is often the challenge… growth comes often as a bit of an accident…. You win a big deal, that big deal leads to another big deal and so on… but this can actually increase the risk to your business, not lessen it… payroll goes up, you need a bigger office, or more offices in different town to access broader talent pools or having staff near your big client… (in their office even).
- OK so stick with us on this…. We are getting to the heart of the problem….. Lets look at this in a bit more detail… I think you’ll recognise
- Whats really important for long term success is that you don’t put all your eggs in one basket – or bowl as we have here… you need to spread the risk… lose one big client and your back in trouble again… BUT don’t spread yourself so thin – doing too many things at once will see you come unstuck.
- Customers don’t feel they are getting value, sales are finding opportunities that don’t best fit with the business (causing friction, increasing business risk) and operations aren’t ready to deliver the customer need efficiently.
- Customer feel like you are in the fight with them… you goals, your teams goals and the customer goals are all pointing in the same direction, focused on achieving the same thing… as better outcome/business result from the app.
- But Shhhhhhh,
- That’s just for the big guys selling to big enterprise, that’s too fancy for my customers…. Well we thought that at first, but then we started to see many smaller companies offering this to their customers…right sizing it so it made sense to their customer business and their business… more of that in a minute… first… what do we mean by Mobile Application Performance Management…
- This is the traditional view of the development lifecycle
- The best solution is one that delivers a successful outcome for everyone… you customers get awesome apps, you get a business that’s easier to run and primed to scale…
- Alarm bells should start ringing if there is no ongoing commitment for investment.