With SAP’s confirmed adoption of a more utility based approach to pricing and packaging. Admittedly utility is a little generous, but selecting the right approach to the market matters. Whether it’s your delivery model, licensing dials or general operations – how you deliver value to your segment is very much centered on understanding your organizational capacity, market preferences and operational engagement.
It doesn’t matter what type of model – a freemium business model, utility oriented cloud model or even a legacy on-premise licensing approach all are equally valid providing they are acceptable to your segment. Business models are ultimately more complex than just packaging and delivery/execution in technology companies….but just thinking in terms of those items for product marketers and product managers can provide some clarity on how to maximize both operational assets and product assets in a given segment.
Here is a presentation on business model innovation and items to consider. While there are some gaps in the model, it does get one thinking on the market’s operational and engagement requirements.
The right approach to identifying how to align your business model to the market requires market research, a thought approach to content marketing and broad understanding your competitive and market landscape.