Today we’re launching our Reference Architecture🎉 This is both vision and blueprint for B2B software companies to upgrade their ‘monetization capability’, so that they can keep up with rapid evolution in business models driven by the disruptive impact of AI and other powerful trends. We have a distinctive point of view and our confidence in it has been bolstered by the reaction of customers - “a-ha!” - through hundreds of sales engagements. Core to it is an assumption that successful software companies are committed to their CRM and ERP, and that what’s needed is a third foundational system that enables and connects them. That’s the role m3ter is designed to perform. We've published an introductory blog (see link in comments👇) that provides a summary. The detailed artefacts are private to customers but we’ll release a series of practical ‘how to’ guides that dive into various aspects of the architecture from early in the New Year. If you’re eager to get a closer look, reach out to me. Quickly summarising our point of view here: 1️⃣ B2B software companies are often 'lop-sided' - fantastic product capabilities but less developed monetization capabilities. That’s because, to date, prevailing business models have been simple - recurring subscriptions. 2️⃣ But now business models are evolving rapidly, with a shift towards more usage-based pricing driven by the disruptive impact of GenAI and other powerful trends towards automation, APIs, PLG, etc. 3️⃣ Established software companies are struggling to adapt - the 'revenue-to-lead' stack is a bottleneck that chokes innovation. Usage-based pricing models are a challenge because companies lack fit-for-purpose usage and rating infrastructure AND they are hamstrung by a lack of automation AND they struggle with change. 4️⃣ But they’re also highly committed to their CRM and ERP tooling, around which there is high inertia. What to do? 5️⃣ The solution is to cut through the knot with a third foundational piece that emphasises enablement and connection. It completes and unifies the monetization stack by performing two key functions - the missing metering and rating infrastructure required for complex pricing, and automating data flows between the CRM, ERP, BI stack, and the product itself. 6️⃣ Once this third leg of the stool is in place, it creates a framework that everything else can ‘snap into’. For specialist tasks (for example CPQ, tax calculation, revenue recognition, invoicing) you have your choice between best-in-class point solutions or products in the CRM and ERP suites. Teams work in the environments they feel most comfortable in. And the overall lead-to-revenue system can support complex business models with a high degree of automation and easy adaptability to change.
Ton Dobbe 🔆
1w
Love how you're laying out a model that helps to avoid the compromise so many companies struggle with. CRM will never be an ERP ERP will never be a CRM (even though it's often tried....) And both will never be great where it comes to dealing with pricing (although it could sit in both). Focus on the strenghts.
John Griffin
1w
Great post partner!
CEO/Founder at m3ter - pricing and billing for B2B SaaS
1wRead about m3ter's Reference Architecture here👉 https://www.m3ter.com/blog/introducing-m3ter-s-reference-architecture