Keep it real!!!! The cruel rule of traditional enterprise software new era

we will never be noble

that’s not flowed in our blood things

that kind of luxury does not belong to our

we want to through other ways to express

survival becomes more and more difficult, in the field of B2B now, has almost come to the most difficult time. A board member of mine recently told me a enterprise software old glory as one of the things. He said that he remembered the 90 s there was a software vendors want to do business with a big customer, supplier offer more than $100 million, but the customer’s price is only $90 million. Supplier finally got the customer, with a $100 million offer. This is a great case isn’t it?

every SaaS company CEO should take note, in the cloud world, most of us “deal” that have never seen hundreds of millions of dollars, let alone nine digits of the deal.

when parker system software co., LTD. (Siebel Systems) is an epic software companies in the 1990 s, its seven annual income reached $1. That’s unheard of miracles. And the legend of our times,, 10 years of management, all the losses.

almost every traditional technology companies in the CEO, many are on the brink of collapse, only those operating conditions also is very difficult. Perhaps company, they will think that this is an opportunity, but most of the nouveau riche and for the first time publicly listed companies do not like their predecessors profitable.

failing is not just the technology industry. In the American TV series “mad men”, a martini lunches and long-term customer relationships, makes millions of dollars of business also can be easily performed. The advertisement in the new world, your relationships are usually only last a few milliseconds, a moment is just a real-time final offer.

in fact, those who mix popular suppliers, one is to help you optimize after-sales customer life cycle. Customer experience management market is super hot, like a high-end data Medallia and Qualtrics and professional network volume survey website SurveyMonkey. Zendesk (help businesses collect sorts of complaints of online information service) initial public offering (IPO) will show interest in a new generation of customer support. Intercom. IO is change the way business contact with the customer. Even in this year’s enterprise cloud computing company Dreamforce clear the show themselves as platform of customer success.

in short, customer relations become concerned hot again. What’s happening behind this?

competition intensified

although Peter, Peter Thiel has done a lot of work, clarify the competition is not so cruel, but the fact remains that the B2B world polarization and monopoly is growing.

with the loss of the start-up costs, no matter you are by SaaS technology to reduce cost, leverage, on-demand manufacturing or use of the cloud infrastructure, each area has the existence of the nouveau riche.

because of this, almost every fortune 500 electricity CEO behind, there is a Y Combinator incubation are praying they hurriedly bankruptcy of enterprises. Cloud startups ZenPayroll salary management and automatic data processing company ADP seeking cooperation, and employee benefits management platform Zenefits is the digital medical insurance brokers do small and medium enterprises. If you are a big company leadership, your company name begin with “Zen”, that your days will not be calm.

customer viscosity is only a legend

a lot of traditional business model relies too heavily on long-term cooperation with customers.

you bought millions of dollars in enterprise software products, spent tens of millions of dollars to configure, after you want to think about it? I wish you good luck.

you spent a year laid good physical security of the whole network equipment, and worried that they wouldn’t use? Start creating your own Internet business relationships, because the company once has the ability to replace hardware, would bring you a feet chuai open.

, by contrast, in the new world, your competition is only an electronic signature, a change for the domain name server (DNS) or an application program interface (API).

Cycles of

value over time change

yes, it’s very worth miss the past days. If your customer is one-time imprest early millions of dollars, and you can use the money to invest in growth and development, but also to a large number of dividends to shareholders. Because of your customer in advance, so at least for a period of time will not abandon you.

now, your customers choose to pay, pay pay even a single month. However, you need to do the same on marketing and research and development is still a long-term investment. That is to say, you bet that the money has to be now own pocket, loss is inevitable.

what should we do?

with these changes, the B2B professionals is undergoing a mishap after five stages:

refused to believe – “these changes may affect the whole industry. The housekeeper! My car!”

anger – “sucks! I want to back in the 90 s! God, who will pray for me!”

a bargain – “if we are in front of the company’s name and” cloud “, things will get better, right?”

depression – I need a doctor! Come on!

accept – “our situation is getting worse… “

once leaders reached the final stages, they will be aware of the company need to come to a complete reform, including measure, organization and enterprise culture, to adapt to the more cruel world.

measures: in the new world, because of the subscription and fee payment is made, the development of new users is no longer a measure. Measuring customer churn rate and calculate customer lifetime value is very important. Order with service billing and payment solutions leader Recurly Zuora, order management and Aria subscribe to pay suppliers, help the company through the SaaS and cloud computing, digital media to maximize their regular source of income.

organization: as a CEO, you can’t just rely on production and sales of products to run the whole company. You must set up an organization, responsible for long-term maintenance of customer, the organization must be a part of the core leadership team. Therefore, many enterprises are establishing customer team success. Even large consulting company like McKinsey (McKinsey) now also have noticed the trend.

enterprise culture: finally, you can’t think of another “hunters” that play a gun in a gun, and customer first business is just the beginning of the customer relationship, you must every day on the customer value, this business more than one cause for celebration.

so exhilarating drunk a, then open your eyes and see reality. This is a new world, as long as we are alive, you must accept it.

as Lorde in a song, a fantasy, or we can drive the Larry Ellison (Larry Ellison) yacht cruise in the dream.


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