Enterprise Software Homework Problem

• A software company in a competitive market sells Enterprise Resource Planning Software (ERP) software. It is a SaaS model and the average selling price is represented by the annual contract value, which is $300K. The company focuses on large enterprises and looks to displace incumbent premise-based software. While ERP is well known, a SaaS model is a new approach to the market. The sales team is crying for more leads.Please look at the waterfall and determine how they may improve. Please address the following:

• Under the current waterfall performance, how many inquiries will be required to generate the same number of units sold for the industry average companies and best practice?
• What are potential issues you can see from the data, and how would you advise them to improve?

• If there are SLA's which maybe an issue, which ones and why?

• What will the impact on performance be should the company get to industry benchmark? What about best practice? Please comment on the revenue, units sold, and sales pipeline sourced.

• Please note ASP stands for Average Selling Price

Waterfall Analysis Enterprise Software ASP $300K Company Average Best Practice Inquiry to AQL 5% 9% 15% AQL to TAL 80% 72% 88% TAL to TOL 30% 53% 67% TOL to SAL 80% 88% 92% SAL to SQL 60% 61% 88% SQL to Won 20% 29% 33% Key Inquiry INQ Automated Qualified Lead AQL Tele Accepted Lead TAL Tele Qualifed Lead TOL Sales Accepted Lead SAL Sales Qualified Lead SQL Won WON