Capitalizing on Service Offerings

Opportunity

This global not-for-profit produces and sells the market-leading educational assessment software and has a mission to partner with schools and districts to ensure all kids learn. The partner services division is responsible for supporting partners (customers) in the implementation and use of the software. Historically many of these services have been included and provided as part the license fee, but commercial competitors are changing the market by breaking out and charging for services separately. As a result, there is increased price competition and it is becoming increasingly difficult to generate enough income from license fees alone to cover all of the services provided.

Solution

Pepper Foster was engaged to help develop the strategy, and business model for partner services going forward. Key stakeholders from all areas of the organization, and key external partners (customers) were identified and interviewed. The current state and competitive landscape were assessed, and opportunities and challenges identified and documented. Future State workshops were held with key leaders and stakeholders during which the current state assessment findings were discussed and the future state vision and strategy for Partner Services developed and agreed upon. A gap analysis between the current and future state vision, and a roadmap of projects and initiatives to close those gaps, was developed and presented to senior leadership for approval and funding.

Outcome

There is alignment across the organization about what services should be provided 'in the box' as part of the license fee, and which should be charged for separately as 'out of the box' services. Charters and revenue estimates for the 'out of the box' services have been produced and a program launched to productize, standardize and sell the highest priority services planned and initiated. New chargeable services will be launched to partners over the next 12 months.