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@DXWorldExpo Authors: Pat Romanski, Liz McMillan, Elizabeth White, Yeshim Deniz, Maria C. Horton

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Scorecard for #SaaS | @CloudExpo #DevOps #AI #SaaS #FinTech #DataCenter

An organizing framework that can be leveraged to great effect in maximizing customer success and driving corporate value

Updating the Balanced Scorecard for the Saas World: Subscription Scorecard

The balanced scorecard (BSC) is a tool that organizations have used for many years to measure strategic, operational and financial performance. The concept behind the BSC is simple: a company and/or business unit prioritizes a set of 15 to 20 financial and non-financial metrics across four quadrants linked to the company's market and operations strategy in order to measure and manage performance. While the BSC is a good organizing framework and remains relevant today, it needs a major shift to be effective in a Software-as-a-Service (SaaS) world where traditional BSC measures don't adequately gauge and predict performance.

SaaS companies have a constant window into how customers use their products as well as an opportunity to gain insight and add value at continuous customer touch points. When harnessed correctly, this knowledge can be used to form close, profitable and predictable long-term customer relationships.

Introducing the subscription scorecard
To better address the dynamics of a subscription / SaaS business model, the BSC needs to be "rebalanced" with customer success at the center driving financial value. In turn, innovation and operations measures are reoriented around driving customer success.

New metrics for the subscription scorecard
The metrics within each of the four subscription scorecard categories will vary based on the company's strategy, priorities and starting point. However, through our client casework and research, we advise that most of the following metrics should be used to manage and predict performance in a SaaS world.

Financial value
The financial value category measures the economic value of a subscription model and needs to consider customer adoption, growth rate, operating margin and cash flow over multiple years.

Customer success
Customer success is measured on a more granular basis beyond simple aggregate customer satisfaction and/or Net Promoter Scores.

Innovation velocity
Innovation velocity measures the rate the company delivers new and continuing value to customers.

Operations quality
Operations quality metrics are oriented around measuring organizational performance and efficiency and go beyond "table stakes" operating metrics of uptime, support response time and performance against SLAs, etc.

Taking action on the subscription scorecard
Software company executives, whether leading a pure-play SaaS company or migrating the company's offerings from on-premises to cloud, need to mobilize action around the subscription scorecard. This mobilization varies based on the starting point, but typically entails the following:

  1. Prioritize and standardize subscription scorecard metrics. Set five priority metrics for each of the four scorecard categories with clear definitions based on the company's strategy, priorities and key initiatives.
  2. Retool business reporting and analytics approach. Establish a subscription analytics group that sets and drives system priorities, determines a data and measurement approach, provides data visualization and reporting cadence and manages ongoing business user requirements.
  3. Leverage the subscription scorecard to manage and predict performance. Progressively embed the subscription scorecard into planning, budgeting and operating performance management. Operationally, the subscription scorecard should be used to foresee and head off retention issues, anticipate future customer product needs and identify customers who represent high probability upsell/cross-sell opportunities. Strategically, the subscription scorecard should strive to establish correlations between the different subscription scorecard categories (e.g., correlation between customer success metrics and financial value metrics, operations quality metrics and customer success metrics, and/or innovation velocity metrics and customer success metrics).

Regardless of whether a software company needs to build an analytics-based management approach or is already collecting data and needs to extract value from it, the subscription scorecard is an organizing framework that can be leveraged to great effect in maximizing customer success and driving corporate value. With software leading the way, more and more industries are embracing the subscription model and propelling the overall rise of the subscription economy. Given its broad applicability to this movement, the subscription scorecard and its emphasis on customer success will be relevant for many years to come.

@DevOpsSummit at Cloud Expo taking place June 6-8, 2017, at Javits Center, New York City, and is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.

DevOps at Cloud Expo / @ThingsExpo 2017 New York 
(June 6-8, 2017, Javits Center, Manhattan)

DevOps at Cloud Expo / @ThingsExpo 2017 Silicon Valley
(October 31 - November 2, 2017, Santa Clara Convention Center, CA)

Download Show Prospectus ▸ Here

The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.

@DevOpsSummit will expand the DevOps community, enable a wide sharing of knowledge, and educate delegates and technology providers alike. Recent research has shown that DevOps dramatically reduces development time, the amount of enterprise IT professionals put out fires, and support time generally. Time spent on infrastructure development is significantly increased, and DevOps practitioners report more software releases and higher quality. Sponsors of @DevOpsSummit will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers.
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35-minute technical session
  • Online advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage.
  • Unprecedented PR Coverage: Editorial Coverage on DevOps Journal
  • Tweetup to over 75,000 plus followers
  • Press releases sent on major wire services to over 500 industry analysts.

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez by email at events (at) sys-con.com, or by phone 201 802-3021.

The World's Largest "Cloud Digital Transformation" Event

@CloudExpo / @ThingsExpo 2017 New York 
(June 6-8, 2017, Javits Center, Manhattan)

@CloudExpo / @ThingsExpo 2017 Silicon Valley
(Oct. 31 - Nov. 2, 2017, Santa Clara Convention Center, CA)

Full Conference Registration Gold Pass and Exhibit Hall ▸ Here

Register For @CloudExpo ▸ Here via EventBrite

Register For @ThingsExpo ▸ Here via EventBrite

Register For @DevOpsSummit ▸ Here via EventBrite

Sponsorship Opportunities

Sponsors of Cloud Expo @ThingsExpo will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35 minute technical session
  • Online targeted advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage
  • Unprecedented Marketing Coverage: Editorial Coverage on ITweetup to over 100,000 plus followers, press releases sent on major wire services to over 500 industry analysts

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez (@GonzalezCarmen) today by email at events (at) sys-con.com, or by phone 201 802-3021.

Secrets of Sponsors and Exhibitors ▸ Here
Secrets of Cloud Expo Speakers ▸ Here

All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo@ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

Track 1. FinTech
Track 2. Enterprise Cloud | Digital Transformation
Track 3. DevOps, Containers & Microservices 
Track 4. Big Data | Analytics
Track 5. Industrial IoT
Track 6. IoT Dev & Deploy | Mobility
Track 7. APIs | Cloud Security
Track 8. AI | ML | DL | Cognitive Computing

Delegates to Cloud Expo @ThingsExpo will be able to attend 8 simultaneous, information-packed education tracks.

There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content.

Join Cloud Expo @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA for three days of intense Enterprise Cloud and 'Digital Transformation' discussion and focus, including Big Data's indispensable role in IoT, Smart Grids and (IIoT) Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) Digital Transformation in Vertical Markets.

Financial Technology - or FinTech - Is Now Part of the @CloudExpo Program!

Accordingly, attendees at the upcoming 20th Cloud Expo @ThingsExpo June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA will find fresh new content in a new track called FinTech, which will incorporate machine learning, artificial intelligence, deep learning, and blockchain into one track.

Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expensive intermediate processes from their businesses.

FinTech brings efficiency as well as the ability to deliver new services and a much improved customer experience throughout the global financial services industry. FinTech is a natural fit with cloud computing, as new services are quickly developed, deployed, and scaled on public, private, and hybrid clouds.

More than US$20 billion in venture capital is being invested in FinTech this year. @CloudExpo is pleased to bring you the latest FinTech developments as an integral part of our program, starting at the 20th International Cloud Expo June 6-8, 2017 in New York City and October 31 - November 2, 2017 in Silicon Valley.

@CloudExpo is accepting submissions for this new track, so please visit www.CloudComputingExpo.com for the latest information.

Speaking Opportunities

The upcoming 20th International @CloudExpo@ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA announces that its Call For Papers for speaking opportunities is open.

Submit your speaking proposal today! ▸ Here

Our Top 100 Sponsors and the Leading "Digital Transformation" Companies

(ISC)2, 24Notion (Bronze Sponsor), 910Telecom, Accelertite (Gold Sponsor), Addteq, Adobe (Bronze Sponsor), Aeroybyte, Alert Logic, Anexia, AppNeta, Avere Systems, BMC Software (Silver Sponsor), Bsquare Corporation (Silver Sponsor), BZ Media (Media Sponsor), Catchpoint Systems (Silver Sponsor), CDS Global Cloud, Cemware, Chetu Inc., China Unicom, Cloud Raxak, CloudBerry (Media Sponsor), Cloudbric, Coalfire Systems, CollabNet, Inc. (Silver Sponsor), Column Technologies, Commvault (Bronze Sponsor), Connect2.me, ContentMX (Bronze Sponsor), CrowdReviews (Media Sponsor) CyberTrend (Media Sponsor), DataCenterDynamics (Media Sponsor), Delaplex, DICE (Bronze Sponsor), EastBanc Technologies, eCube Systems, Embotics, Enzu Inc., Ericsson (Gold Sponsor), FalconStor, Formation Data Systems, Fusion, Hanu Software, HGST, Inc. (Bronze Sponsor), Hitrons Solutions, IBM BlueBox, IBM Bluemix, IBM Cloud (Platinum Sponsor), IBM Cloud Data Services/Cloudant (Platinum Sponsor), IBM DevOps (Platinum Sponsor), iDevices, Industrial Internet of Things Consortium (Association Sponsor), Impinger Technologies, Interface Masters, Intel (Keynote Sponsor), Interoute (Bronze Sponsor), IQP Corporation, Isomorphic Software, Japan IoT Consortium, Kintone Corporation (Bronze Sponsor), LeaseWeb USA, LinearHub, MangoApps, MathFreeOn, Men & Mice, MobiDev, New Relic, Inc. (Bronze Sponsor), New York Times, Niagara Networks, Numerex, NVIDIA Corporation (AI Session Sponsor), Object Management Group (Association Sponsor), On The Avenue Marketing, Oracle MySQL, Peak10, Inc., Penta Security, Plasma Corporation, Pulzze Systems, Pythian (Bronze Sponsor), Cosmos, RackN, ReadyTalk (Silver Sponsor), Roma Software, Roundee.io, Secure Channels Inc., SD Times (Media Sponsor), SoftLayer (Platinum Sponsor), SoftNet Solutions, Solinea Inc., SpeedyCloud, SSLGURU LLC, StarNet, Stratoscale, Streamliner, SuperAdmins, TechTarget (Media Sponsor), TelecomReseller (Media Sponsor), Tintri (Welcome Reception Sponsor), TMCnet (Media Sponsor), Transparent Cloud Computing Consortium, Veeam, Venafi, Violin Memory, VAI Software, Zerto

About SYS-CON Media & Events
SYS-CON Media (www.sys-con.com) has since 1994 been connecting technology companies and customers through a comprehensive content stream - featuring over forty focused subject areas, from Cloud Computing to Web Security - interwoven with market-leading full-scale conferences produced by SYS-CON Events. The company's internationally recognized brands include among others Cloud Expo® (@CloudExpo), Big Data Expo® (@BigDataExpo), DevOps Summit (@DevOpsSummit), @ThingsExpo® (@ThingsExpo), Containers Expo (@ContainersExpo) and Microservices Expo (@MicroservicesE).

Cloud Expo®, Big Data Expo® and @ThingsExpo® are registered trademarks of Cloud Expo, Inc., a SYS-CON Events company.

More Stories By Mark Hauser

Mark Hauser is managing director and founder of Waterstone Management Group LLC. He has extensive market and operating experience in the technology industry and related business services on a global basis. Mark specializes in operations strategy and improvement, and corporate development in the software and services segment within the technology industry. Contact him at [email protected]

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