Business Transformation in the Subscription Economy (Accelerate East)

1. Business Transforma5on in the Subscrip5on Economy Nicholas von der Wense 1 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

2. Why I am here…. •  In “tradi*onal” business •  Bureaucra*c & hierarchical •  30%+ growth drives our transforma*on •  Happens to be in SoBware (as a Service) •  Senior Execu*ve said so 2 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

3. Neopost $1.4 Billion Global Revenue Paris Based 800,000 Customers 90 Countries Sold to 29 Countries Direct Opera5ons 6000 Employees 35% Market Share in Europe 65% Market Share in France SAP ERP 3 3 USA 50% of Revenue 400,000 Customers 30 Direct Market Opera5ons 1600 Employees 20% Market Share Oracle ERP Zuora confidential, shared under non-disclosure and subject to disclaimer notice Zuora confidential, shared under non-disclosure and subject to disclaimer notice

4. 20% Mail Volume Decline in the USA 213 Billion 172 Billion 4 4 •  From 2007 to 2013 •  Mail declined 20% •  Neopost Revenue has Grown 20% (Same Period) Zuora confidential, shared under non-disclosure and subject to disclaimer notice Zuora confidential, shared under non-disclosure and subject to disclaimer notice

5. What’s our Core Business? Strategy; Op5mize and Grow Organic, single digit •  Mailing solu5ons •  Equipment and services is our Core, tradi5onal business 5 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

6. What’s our Growth Business? Strategy: 30%+ Growth, Acquire, Leverage Core & Install Base •  Customer Informa5on Management •  Communica5on and Shipping Solu5ons 6 Measure both Core and Growth internally and publicly (Do b non-disclosure and subject Zuora confidential, shared under oth at once) to disclaimer notice

7. What Led us to Our Transforma5on Goal of Leveraging Core & Installed Base, Cross-‐Selling SaaS Applica5ons How do you: •  Pay a Hardware rep on a sogware subscrip5on •  Recognize the revenue •  Change the customers subscrip5on on the ﬂy? •  Drive Adop5on of the subscrip5on? •  Get everyone to agree!? 7 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

8. Decisions & Lessons Learned •  IT and Marke5ng are now on the same team •  Communicate clearly even if you are not sure you are sure •  Use an employee engagement or Change management program •  Must emphasize collabora5on and teamwork 8 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

9. Why We Chose Zuora •  Did not want to build capability (not our core competency) •  Oracle is inflexible when it comes to Subscrip5ons •  Need a tool that’s easy to use, scalable & flexible •  Integrates directly to our Salesforce CRM •  Need to support pricing flexibility for future growth 9 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

10. What We Decided •  IT and Marke5ng are now on the same team •  Communicate clearly even if you are not sure you are sure •  Use an employee engagement or Change management program •  Must emphasize collabora5on and teamwork 10 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

Business Transformation in the Subscription Economy (Accelerate East)

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Business Transformation in the Subscription Economy (Accelerate East)