For Coupa Software's Supplier Management module, should we emphasize expanding the supplier network or improving the depth of supplier risk assessment tools?

Introduction

The trade-off we're examining for Coupa Software's Supplier Management module is whether to focus on expanding the supplier network or improving the depth of supplier risk assessment tools. This decision is crucial for Coupa's strategic direction in the procurement space. I'll analyze this trade-off by considering the product's current state, potential impacts, and key metrics, then design an experiment to inform our decision.

Step 1

Clarifying Questions (3 minutes)

• Based on Coupa's market position, I'm thinking this decision might significantly impact our competitive advantage. Could you share more about our current market share and main competitors in the supplier management space?

Why it matters: Helps prioritize features that differentiate us from competitors Expected answer: We're a market leader with 30% share, facing increasing competition from SAP Ariba Impact on approach: Would focus on unique value propositions in either network expansion or risk assessment

• Considering our revenue model, I assume we charge based on the number of suppliers or transactions. Is this correct, and are there any changes planned for our pricing structure?

Why it matters: Aligns product strategy with revenue goals Expected answer: Current model is per-supplier pricing, considering move to transaction-based Impact on approach: Would influence whether to prioritize network growth or deeper engagement

• Looking at user behavior, I'm curious about the adoption rate of our current risk assessment tools. What percentage of our customers actively use these features?

Why it matters: Indicates potential for improvement in existing tools Expected answer: 60% adoption rate, with varying degrees of usage depth Impact on approach: Low adoption might suggest focusing on improving existing tools before expansion

• Regarding technical feasibility, how integrated is our current supplier network with our risk assessment tools?

Why it matters: Determines ease of expanding either aspect Expected answer: Moderate integration, with some data silos Impact on approach: High integration would favor improving risk tools, low integration might prioritize network expansion

• Considering our development resources, what's our current team capacity for taking on new features versus improving existing ones?

Why it matters: Ensures alignment with available resources Expected answer: Balanced team, slightly more capacity for new feature development Impact on approach: Would influence the scope and timeline of chosen strategy