Should Model N prioritize expanding its Revenue Management solution's industry-specific features or focus on improving core functionality applicable to all sectors?

Introduction

The trade-off question at hand is whether Model N should prioritize expanding its Revenue Management solution's industry-specific features or focus on improving core functionality applicable to all sectors. This scenario involves balancing the needs of specific industries against the broader appeal of a more generalized product. I'll approach this analysis by examining the current product landscape, evaluating potential impacts, and proposing a data-driven decision framework.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Model N's current market position. Could you share how our Revenue Management solution currently performs across different industries?

Why it matters: Helps understand if there's a clear need for industry-specific features or if core improvements would benefit more customers. Expected answer: Mixed performance across industries, with some sectors showing higher adoption. Impact on approach: Strong performance in specific industries might lean towards industry-specific features.

• Business Context: Based on our revenue model, I assume we charge per user or transaction volume. Is this correct, and are there any industry-specific pricing structures?

Why it matters: Informs whether industry-specific features could justify premium pricing. Expected answer: Primarily per-user pricing with some industry-specific add-ons. Impact on approach: Industry-specific features might create new revenue streams if priced separately.

• User Impact: I'm curious about our user feedback. Are we seeing more requests for industry-specific features or improvements to core functionality?

Why it matters: Directly informs which direction would address user needs more effectively. Expected answer: Mixed feedback, with some industries pushing for specific features. Impact on approach: Would help prioritize which set of features to focus on first.

• Technical: Considering our current architecture, how modular is our system for adding industry-specific features without affecting core functionality?

Why it matters: Determines the feasibility and potential risks of pursuing industry-specific features. Expected answer: Moderately modular, but some challenges in isolating industry-specific components. Impact on approach: High modularity would make industry-specific features more attractive.

• Resource: What's our current team composition in terms of industry expertise vs. core product development?

Why it matters: Helps understand if we have the right resources to pursue either option effectively. Expected answer: Balanced team with some industry specialists and core product experts. Impact on approach: Strong industry expertise might favor expanding industry-specific features.