Strategic Planning
Strategic Elements
o Market Analysis
o Value Proposition
o Channels
o Key Partnerships
o Revenue Streams
o Resources Required
o Key Tasks
o Target Milestones
Cloud Strategies works with clients to devise a detailed strategic plan to create a successful SaaS business with the focus specified by the client. The strategic plan builds on the assessment phase to create a plan to seize the SaaS opportunity. Since the company will have other strategic imperatives, the SaaS strategy will be formulated in conjunction with the company’s other strategic initiatives – no company can focus solely on a SaaS strategy without incorporating other key plans.
The company’s strategic plan is derived from the market opportunity and the company’s target position. Other elements of the strategy include the distribution strategy, partnership requirements, revenue sources, essential tasks, and target project milestones. The strategic plan encompass Product Definition, Product Development, Sales & Marketing including distribution strategies, Services, and Financials.
The product definition strategy is critical for the company’s long term SaaS success. With the likelihood of significant architectural changes being made for an optimal SaaS product, other initiatives such as mobile applications, big data, product APIs, integration, and a modern HTML5 based user interface should be encompassed within the larger product strategy discussions. These changes need to be made while supporting the business needs during the transition.
Changes to the company’s Sales and Marketing tactics will be considered in the strategic plan, particularly with respect to the transition or augmentation of current products as appropriate. Impact on the channel operations also must be assessed with a transition plan developed.
The financial impact of a move to SaaS will be considered due to a short term drop in revenue from products currently sold under a prepaid licensing model moving to a longer term annuity subscription payment. The business model which is a component of the Strategic Plan includes a target pro forma financial model for the SaaS business including target profitability, cash flow, and working capital requirements. If appropriate capital raising and exit strategies can be addressed. A key aspect of the plan is the development of crucial KPIs to measure the success of the plan’s implementation. In the case of an on-premise company transforming themselves to a pure-play SaaS company or hybrid on-premise/SaaS company, the strategy will entail a plan for moving products, sales and marketing, product pricing, and channels towards the SaaS model. In the case of a startup company, the strategic development plan can provide the basis for the company’s Business Plan and “Pitch Deck” for investors.
The assessment will consider a phased strategy (an initially hosted solution to provide SaaS-like capabilities), a hybrid SaaS strategy (providing both on-premise and SaaS modules) or a full adoption of SaaS delivery models for some or all modules.
The assessment can also provide an indication of the market risks that may occur by not adopting a SaaS strategy.
“Moving Forward to SaaS” Plan
Next steps, preliminary cost, and schedules can be estimated. If desired, we can work with management to build a business plan around a Hybrid or “pure SaaS” business.
