Exploring New Revenue Streams in a Software Company
Shrestha, Sachin (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023112030205
https://urn.fi/URN:NBN:fi:amk-2023112030205
Tiivistelmä
The purpose of this study is to formulate a recommendation of alternative revenue streams that the case company can implement to influence its earnings growth. The case company is a successful invoicing and financial management software company. The company's mission is to simplify administrative tasks for small business owners globally. Despite its solid foothold in the market, the case company wants to identify revenue sources that were previously untapped. This thesis looks at possible revenue streams to boost earnings growth while remaining compatible with the present revenue model and assuring a quick, cost-effective adoption. The proposed stream should be lightweight and not upset the present consumer base and their behaviors.
The study used a mixed-methods approach, combining qualitative interviews with stakeholders with quantitative data from an annual consumer survey (about 2k responses out of 15k volunteer invitations among Daily Active Users (DAU) with 13.34% response rate). The theoretical framework dug into available knowledge and best practices for revenue generation in the software as a service (SaaS) industry. The highlights from best practice were merged into a conceptual framework for investigating new revenue models.
The development part involves crafting a proposal comprising multiple revenue model options, accompanied by an analysis of their potential impact on revenue growth and challenges of the case company. Data collected from interviews with key stakeholders informs this phase. The proposal is founded on the results of the current state analysis, supplemented by best practices, and co-creative input from the company's stakeholders and staff. In the proposal, this thesis recommends implementing a PAYG usage-based pricing model for the company´s online invoicing business.
The study culminates in the proposal validation, where the chosen pay-as-you-go (PAYG) revenue model, a variant of the usage-based revenue model, gets discussed and adopted by the case company. This model allows users to accumulate costs for additional software features only. This innovative strategy aligns with market trends and benefits both our company and its clients, and thus allows to stay agile in the ever-changing world of online invoicing and payment processing. The case company eagerly anticipates the implementation of this new pricing model to meet evolving customer demands and reinforce its industry leadership position.
The study used a mixed-methods approach, combining qualitative interviews with stakeholders with quantitative data from an annual consumer survey (about 2k responses out of 15k volunteer invitations among Daily Active Users (DAU) with 13.34% response rate). The theoretical framework dug into available knowledge and best practices for revenue generation in the software as a service (SaaS) industry. The highlights from best practice were merged into a conceptual framework for investigating new revenue models.
The development part involves crafting a proposal comprising multiple revenue model options, accompanied by an analysis of their potential impact on revenue growth and challenges of the case company. Data collected from interviews with key stakeholders informs this phase. The proposal is founded on the results of the current state analysis, supplemented by best practices, and co-creative input from the company's stakeholders and staff. In the proposal, this thesis recommends implementing a PAYG usage-based pricing model for the company´s online invoicing business.
The study culminates in the proposal validation, where the chosen pay-as-you-go (PAYG) revenue model, a variant of the usage-based revenue model, gets discussed and adopted by the case company. This model allows users to accumulate costs for additional software features only. This innovative strategy aligns with market trends and benefits both our company and its clients, and thus allows to stay agile in the ever-changing world of online invoicing and payment processing. The case company eagerly anticipates the implementation of this new pricing model to meet evolving customer demands and reinforce its industry leadership position.