Strategies to Improve Licensing and Entitlement Management Capabilities
Tech Sheets - The High Tech Blog
Posted by Rohan Sud on April 4, 2013
Licensing and entitlement management refers to the capability of an organization to track and manage “who” has “what rights” to “what products and services” for “how long and how many” and “why”. Simply put, it provides a mechanism for an organization to both sell to and service their customers in the most optimal way.
Today many companies face manifold challenges in this area ranging from overly-complex licensing and entitlement models; to manual and error-prone order management processes; to poor customer and installed base data. These challenges inhibit top-line growth, add to customer dissatisfaction and increase bottom line costs.
In my view companies can improve their overall licensing and entitlement management capabilities by following these simple strategies.
Simplify the product structure to reduce complexity for licensing and entitlements: Complex SKU structures with large number of product variations invariably lead to complicated licensing and entitlement models and the attendant difficulty in managing them. Minimizing the product variations and simplifying the SKU structure will thus reduce complexity in licensing and entitlement models.
Provide easy access to licensing and entitlement data to promote better customer experience: An intelligent licensing and entitlement approach that provides customers easy access to their products, a unified view of their installed base and cross-sell, up-sell options based on customer segmentation and specific characteristics will improve customer experience and the chances of realizing significant value at each customer interaction. For example, providing unfettered experiences i.e. easy-to-install, readily unlocked products, targeted at large, trusted enterprises which often need installation support will promote a better customer experience.
Implement a technology platform that enables all stages of the licensing and entitlement lifecycle process to promote better end-to-end experience from sale to service and continued sales opportunities: A technology solution that addresses all functional requirements for customers, partners and employees across the create, fulfill and manage phases of the entitlement lifecycle will facilitate a slick delivery and installation process, further improve service to the customer, enhance their experience using the product and increase the chances to renew, cross-sell, or up-sell to higher-value products and services.
Centralize and promote the importance of licensing and pricing functions in the organization to drive overall improvement.
These strategies can positively impact customer and channel satisfaction as well as reduce the burden on the call center and support operations. Additionally, they will improve visibility of entitled data across sales and channel thus providing opportunities to grow revenue.
While these are conceptually simple steps, making the transformation can be complex from a business operation, organization, IT and customer / partner relationship perspective. Don’t take any single one of these lightly, as each needs to be addressed for overall effectiveness.
|Rohan Sud is a senior manager in Deloitte Consulting's Technology Sector. During his tenure at Deloitte, Rohan has worked with numerous large and medium sized clients in the High Tech industry.|
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