In the software space, driving revenue and profitability has everything to do with software licensing. Wait, correction – it has everything to do with a software licensing strategy that is working correctly. Failure to align this strategy correctly and you run the risk of revenue leakage, customer dissatisfaction and operational inefficiencies.
Software licensing solutions provider, Flexera Software recently published a blog on this topic, stressing the importance of a successful licensing program. With one in place, you can improve the customer experience, maximize revenue and optimize operational processes. To accomplish this, Flexera suggests there are four critically important characteristics. Let’s take a look at this list and why you need put one just like it in place in your own environment.
Agility – it’s a common focus in the software world, but it’s especially important when it comes to software licensing. The agile and flexible approach is critical in an environment where corporate business goals and market climate shift frequently and rapidly. You must have programs that can quickly support new operational flows and innovative license models. With an agile framework, you can immediately address your hottest licensing item without a major IT project.
Centralization – the successful licensing program requires a well-defined central license policy. It provides a cohesive road map for defining the all-embracing product revenue model. If yours is a company in an industry where mergers and acquisitions are common, the need for centralization is even more pronounced. It helps to eliminate duplications, operational inefficiencies, customer frustration and more.
Single and Dynamic – the single, dynamic licensing platform is a must in an agile and centralized licensing environment. Flexera suggests that the platform leverage a technology agnostic interface so that it easily consumes new ways of licensing. FlexNet Embedded from Flexera Software is one way to accomplish this task.
Dedicated Entitlement Management – the dedicated system must be separate from any CRM or ERP system. Such systems are designed to be dedicated to financial and customer service responsibilities and therefore make poor substitutes. Therefore, entitlement management for software licensing must serve as a hub for all operational activities and business processes based on licensing.
If you’re ready to put a process in place that allows for maximum revenue and profit realization, following these four steps for software licensing is an important strategy to put in place. Each element points to the impact on the organization and why it’s in place. Don’t spend any more time on inefficiency and customer dissatisfaction. Put programs in place that will drive the results you want.
Edited by Maurice Nagle