Is it better for Workday to focus on expanding our enterprise client base or improving small business offerings?

Introduction

The trade-off we're examining today is whether Workday should focus on expanding our enterprise client base or improving our small business offerings. This decision is crucial for our product strategy and overall business growth. I'll analyze this trade-off by considering market dynamics, user needs, technical feasibility, and potential business impacts.

Step 1

Clarifying Questions (3 minutes)

• Based on our current market position, I'm thinking enterprise clients might be our primary revenue source. Could you share the revenue split between enterprise and small business segments?

Why it matters: Helps understand the financial impact of focusing on either segment Expected answer: 80% enterprise, 20% small business Impact on approach: A higher enterprise revenue share would lean towards expanding that segment

• Considering user behavior, I'm assuming small businesses might have different needs and usage patterns. What are the key differences in feature usage between enterprise and small business clients?

Why it matters: Identifies potential product development priorities Expected answer: Small businesses use core features, enterprises use more advanced modules Impact on approach: Would influence which features to prioritize for each segment

• Looking at our technical infrastructure, I'm wondering about the scalability for small businesses. How different is our current architecture for enterprise vs. small business offerings?

Why it matters: Determines the technical effort required for expansion Expected answer: Shared core with some enterprise-specific modules Impact on approach: Would affect resource allocation and development timelines

• Regarding our team structure, I'm curious about our current focus. How are our product and engineering teams currently allocated between enterprise and small business segments?

Why it matters: Indicates current resource distribution and potential for reallocation Expected answer: 70% enterprise, 30% small business Impact on approach: Would influence the feasibility of shifting focus

• Considering market trends, I'm thinking about the growth potential in each segment. What are the projected growth rates for enterprise and small business markets in our industry?

Why it matters: Helps assess long-term potential of each segment Expected answer: Enterprise market growing at 5%, small business at 15% Impact on approach: Higher growth in one segment might justify more investment