Product & Market Definition

Maintaing Value in a Changing Market

A software company had struggled for several quarters in determining its next generation product strategy. The market for its flagship applications were changing in ways that would significantly impact the company’s core value propositions.

The Challenges

Integrated solutions replacing traditional applications
The need for greater effectiveness and accountability by customers in its core markets was driving the development of Marketing Resource Management (MRM) solutions which the company’s traditional tools-based applications did not fully address.

Dependence on specialized users
Over 50 percent of the company’s sales came from specialized users. As a strong point-product player, the market trend toward integration was both a threat and an opportunity. If navigated well, this wave of change could propel the firm to new revenue sources. But if the company lost its way, it could surrender market share to competition.

Multiple options for future strategic product direction
The company was evaluating three very different future strategic directions:

Desktop-based point applications
Server-based point applications
An integrated solutions platform

Successful planning required an understanding of the direction of the market and the potential impact on the company’s future business and competitive position around each of these options.

The Rubicon Solution

Rubicon aided the client in creating a business strategy for the MRM market by way of:

Creating a rich visual market landscape for the emerging MRM space: who are the players and what are the market dynamics and key trends
Developing a market sizing for each strategic product option based on Rubicon’s own primary as well as synthesis of secondary research
Evaluating the business ramifications and potential for each of the three strategic product scenarios
Continuing to focus on the desktop business with sales via corporate resellers
Focusing on being an OEM component vendor to third-party integrated solutions
Providing an integrated platform to be sold via an ISV model

The Results

Rubicon’s recommendations addressed necessary changes to the next stage of product development requirements and what programs and services would be needed in order to maintain control of the customer relationship as the MRM space develops. In the context of Rubicon’s recommendations, the client was able to end its analysis paralysis and find the appropriate go-to-market approach for the MRM market. Management quickly garnered Board of Directors approval for the strategy and moved forward with execution.