Companies across industries are increasingly adopting Product-as-a-Service business models to meet evolving customer needs and to benefit from high margins and monetization opportunities. The operating model necessary to support this new service business model requires alignment throughout the operating model, spanning from products, to routes to market, to finance and support functions.
More importantly, a successful Service business requires an operating model anchored on key drivers and metrics to measure and optimize business performance that are unique to that business. These metrics are essential to assess progress as organizations embark on their transformation journey, and calibrate their approach accordingly.
KPMG’s new publication “Transforming your SaaS business: A strategic guide for optimizing business performance”, outlines a strategic framework to assess performance at each stage of the SaaS business lifecycle—launch, scale/optimization and stabilization. The publication defines the key metrics, their interpretation and how best to incorporate them into a SaaS business strategy to accelerate growth, improve profitability and achieve sustainability.
We hope you find the strategic drivers, metrics and transformational priorities provided in this publication valuable.
KPMG Somekh Chaikin provides a variety of advisory services for companies who intend to enter into the SaaS world. Some of the services included in our SaaS arsenal are – formulating a pricing strategy, building a forecast/business model, implementation of key performance indicators (KPI) and assisting in capital raising processes. Let us know if you would like to review the insights of this SaaS business framework, in the context of your business.