The Issue
An enterprise software company wanted to explore new growth options, given an operating environment in which market dynamics were shifting. The company wanted to introduce a recurring revenue, cloud offering, but their existing business model was optimized for traditional licensing and professional service offerings.
The Approach
Waterstone partnered with the leadership team to design the new business model, and to launch and scale the business over a three year period. Initially, Waterstone partnered with the management team to define the new offering and target market. Waterstone designed the operating model, with specific focus on developing the sales and marketing strategy, the delivery model, and the organizational structure. The Waterstone team analyzed the financial impact of the new business, by building a 3-year financial model from a bookings, revenue, cost, and investment perspective to understand the levers required to scale the business. Waterstone continues to work as an extension of the management team to profitably grow the business.
The Results
The cloud services business was successfully launched and has grown revenue by 3x and margins by 5x over the past three fiscal years. Waterstone continues to assist the company through program management, identifying and driving delivery improvement initiatives, and driving budgeting/financial planning for business.
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Client
Enterprise software vendor
Issue
Growth and revenue diversification
Approach
Develop growth strategy; plan and execute new business launch
Results
New business successfully launched: 3x revenue growth, 5x margin increase
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