It’s hard to identify a business sector more dynamic and challenging than the software industry. Everything from how software is created, sold, delivered and utilized for business is in flux, driven in part by the shift from on-premises to cloud-based solutions. Among the many variables at play in this sector:
- Changing business models: Competition and the shift to a services-oriented deployment model have put pressure on profit margins.
- Changing expectations: Customer satisfaction and retention are high priorities with pay-as-you-go models.
- Changing regulatory compliance: Software must conform to industry-specific regulatory requirements.
- Version lock: Rapid product evolution and near-continuous revisions make it difficult to have the latest version.
- Multi-device support: A decentralized workforce and the rise of smartphones and tablets create a need to support multiple platforms.
- Growing ecosystem: Software vendors must boost collaboration with partners and enable real-time information flow.
In addition to their software licensing and cloudbased subscription and usage revenue, many software firms depend heavily on two internal services departments: professional services and support services. Consulting and other professional services often come into play when capturing customers and helping them most effectively deploy software solutions. Support services can be a crucial factor in keeping existing customers satisfied and loyal.
Typical Software Company KPI Improvements
The different types of KPIs shown in Figure 1 represent just a tiny slice of the business processes and measurements that can help software companies determine how well they’re performing. Many of the improvements shown spring from both the integrated, multi-function nature of the NetSuite solution, and its delivery as a cloudbased service.
Cloud-Based Business Solutions Suite Delivers Key Performance Improvements to Software Companies