In the tech world many stakeholders influence software business model strategies – product management, customers, engineering, marketing and sales. However, one key stakeholder that is often overlooked is the CFO.
As it turns out, many tech company CFOs absolutely care about software monetization, especially as it relates to establishing predictable and recurring software licensing revenue streams as well as ensuring and accelerating revenue recognition.
In our experiences, the reasons that CFOs care about entitlement management and electronic software delivery is that if the right systems and processes are in place it will help streamline operations and support month- and quarter-end when transactions are at all-time highs. As the graphic below depicts, if legacy or homegrown entitlement management and software delivery systems are used a bevy of undesirable outcomes could occur, including: difficulty transitioning to recurring revenue models, lower renewal rates, time lost chasing-down customer entitlements (what they own, can access and for how long) and missing or lost revenue.