Challenges: The Accelerator Group was engaged to assess a number of the ongoing challenges facing this Innovation Software Company, including a weak brand, limited funding and a Go-to-Market approach that resulted in 18 month sales cycles. On the positive side, it had approximately ten (10) leading Pharmaceutical/Life Sciences companies as clients, and a compelling Return-on-Investment with some of these early adopters.
Recommendations: Our Assessment provided the Board & CEO with our Findings, as well as a series of ‘high impact’ Recommendations to breakthrough these challenges. These included:
- Develop a new business model that shifted the software to be delivered as a service (SAS…Software-as-a-Service). The product was already architected & positioned as a Web 2.0 solution, so the implementation of this recommendation was fairly straight forward. This recommendation would result in a more sustainable revenue model and a significantly greater valuation over time.
- A Phase I Roadmap process was recommended that would allow prospective clients to engage for a limited time (60-90 days) to experience, first hand, the benefits of a world class Innovation Management solution. Here we proposed developing a Best Practice process, a Business Case Template, a Pilot Phase and Launch Plan. This step could be delivered to clients in 60-90 days at 20% of the initial cost of the Annual Subscription with clearly defined benefits/ROI.
- Leveraging the existing client base to open up relationships with Strategic Consultancies and major industry players within Life Sciences. This recommendation was critical to increasing their Brand and Market penetration by partnering with large, branded Service Providers in the Life Sciences Ecosystem.
Benefits / Results of Recommendations being implemented: Over the past 6-9 months, our Recommendations were implemented by the company with our coaching and advisory support. These have resulted in the following benefits to our client:
- The SAS model has made it easier for business executives to engage with our client, thus eliminating the need for IT (Information Technology) to be brought into the process. This has helped to reduce the sales cycle significantly.
- The SAS model has increased the company’s valuation and made it more attractive to potential Investors, as well.
- The Roadmap process has significantly reduced the sales cycle, on average, from 18 months to 6 and provided an 80% Acquisition conversion rate to an Annual Subscription. Our focus on providing a review of their Innovation processes vs. Best Practices, as well as a Business Case has contributed to our success as a credible service provider that understands their problem and provides a tangible industry solution. For the Sales organization, the Roadmap process created a repeatable & scalable process that is now used to measure & forecast Pipeline activity and overall visibility into deals.
- Historically, building relationships with Strategic Consultancies is a journey! In our case, we exposed the top 5 firms to our story and value proposition. In addition to this, we developed a strong, value based relationship with the leading Member organization for Life Sciences. We are in the process of embedding our Innovation Solution into this trusted Member organization and building an Innovation Exchange for the industry! We plan to measure and provide specific benefits of this Innovation Exchange every 6 months. The Strategic Consultancies are now beginning to actively engage with my client.