See how CIOs can deliver the agile pricing, customer acquisition and revenue forecasting capabilities your enterprise needs to test new business models and successfully compete in a world of continuous disruption.

1. Slide 1 − Zuora Confidential, not for distribution beyond intended recipientSlide 1 − Zuora Confidential, not for distribution beyond intended recipient
A New Look at the
Classic IT Dilemma
By Travis Huch
Build vs. Buy

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2
• The Disruption is here
• The CIO is under pressure
• Change is happening – The Five Kinds
• The business case for agility in pricing
• Solution components & the cloud stack
• Summary and recommendations
Agenda / Let’s Make this
Interactive

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Disruption is Here
3

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CIOs Are Under Pressure
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“We spend 80% of our budget maintaining the old
legacy stuff we need to keep. We can’t just unplug it.”
AND
“Our only competitive advantage today is speed”

5. Slide 5 − Zuora Confidential, not for distribution beyond intended recipient
The Five Kinds of Change
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Launch Pivot Scale
B2Any or Usage BasedM&A

6. Slide 6 − Zuora Confidential, not for distribution beyond intended recipient
It Looks Easy to the Business

7. Slide 7 − Zuora Confidential, not for distribution beyond intended recipient
Billing
Gateways
Fulfillment
Provisioning
Immediate or
delayed payment
Connect
to CRM
Notification
Connect to
accounting
Self service
vs assisted
flows
But it’s Harder Than It Seems

8. Slide 8 − Zuora Confidential, not for distribution beyond intended recipient
The New Pricing Lifecycle
The pricing lifecycle is shorter than ever before

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And you are layering in
more services
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• Personalization / Customization
• Remote monitoring and updates
• Compute and storage
• Monitoring and contextual services
• Collaboration and sharing

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All These Changes Are Too Much
10

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THE Textbook Case for Pricing
Agility
11
• MCI announced The Friends and Family Plan
• AT&T was unable to respond for 18 months
• MCI’s revenues went up 11% while AT&T lost 8+%
market share

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The Modern Example
12

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When was the last
time you changed
your pricing?
13

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Now You Know You Need to
Change
14

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But What Kind of CIO Are You?
15
“We build things
that are part of our
core competence”
“It’s a simple ROI
calculation to figure
build vs buy”

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The Emergence of The Business
Innovator
16
“We extend and future-proof our architecture by
using best of breed components”

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“As-Is” Solution at First Contact
17
43% of companies who elect to build commerce billing
and payments come back within 2 years
49%
31%
18%
2%
Commercial accounting
systems
Built home grown system
Replacing a commercial
billing system
Completely mannual

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How Do I leverage what I have?
18

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The New Cloud Stack
19

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There Are Really 3 Parts of the
Problem
Product Catalog
Pricing
Web Order
Sales-Assisted Order
Upsell / Cross-sell
Invoices
Reciepts
Credit Card Payment
Refunds
Partial Payments
Balances
Service Rating
& Billing
Secure PCI
Payments
Commerce Billing & Payments Finance

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21
Plugs into your
ecosystem

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22
It all starts with the right data model

23. Slide 23 − Zuora Confidential, not for distribution beyond intended recipient
Companies that Built then Bought

24. Slide 24 − Zuora Confidential, not for distribution beyond intended recipient
Common Themes Post Go-
Live from our Enterprises
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We’re more agile in our approach to pricing and
onboarding customers
Our engineers have been deployed to things that are
higher value things that are closer to our wheel house
We were able to meet the deadline for launching the
new SaaS product
We maintain the onboarding and provisioning flows,
and Zuora manages everything else
“
”

25. Slide 25 − Zuora Confidential, not for distribution beyond intended recipient
Infinite
pricing options
Things you need to Consider before
Building
1. What is the risk of building (accuracy, leakage
issues)
2. Will you need to support the numbers in an audit?
3. Opportunity Cost = $600K per year in additional
rev
4. What is the timeline goal that this is tied to?
5. How will this functionality need to change over
time?

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Summary
26
• Most companies don’t have unique requirements
when it comes to core billing and payments
• Deploy dev resources on things that give you a
competitive advantage and differentiation
• Agility = Revenue. Ability to change pricing
quickly is a requirement in today’s market
• Let us provide you an assessment of what it
would take to meet your use cases based our
experience

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Thank You!
travis@zuora.com
@travishuch
Let me know if you are interested
in participating in our “What is the
Ideal Enterprise Architecture?”
panel discussion at Subscribed
2014!