by twieberneit | Jan 9, 2023 | Blog |
Finally, it happened. We lived in our blissful world of an abundance of money that fuelled the illusion of eternal and unlimited growth. The stock markets knew only one direction for a decade. They were rising and rising. Venture capital was readily available. Valuations of all sorts of companies, profitable or not, skyrocketed. Growth at all cost over profitability has been the war cry. Acquisitions have been extremely expensive up to the end of 2021. Logic never supported this illusion, the signs have been on the wall, yet we closed our eyes. Then, in 2022, reality knocked at our doors, and none too subtle. In the “CX industry”, examples for this quite rude awakening include Zendesk. Zendesk went private in June 2022 for $10.2 bn after refusing a $16+ bn offer in February 2022. Another one is Freshworks shares starting a steep decline in October 2021 after a very successful IPO in September 2021. These are only two examples and I by no means want to single out these great companies. Other signs included an increasing number of major layoffs throughout the first half of 2022, culminating in Salesforce announcing more focus on profitability due to a subdued outlook and subsequently laying off 8 thousand employees. Oracle already laid off more than 10 thousand employees of its CX division in August 2022. Amazon fired 18 thousand employees since November, 2022. Especially companies in the tech industry increasingly implemented hiring freezes throughout 2022. This is to quite an extent a consequence of their optimism (or should we say hubris?) but also of companies across industries keeping their budgets in tighter control than before. Another problem is that the definition of customer experience...
by twieberneit | Nov 25, 2022 | Blog |
One of the terms du jour is „industry cloud“. We hear it even more often than even platform or CX at this time. Why is that? Why do we speak about them only now and not for a longer time? After all, we have seen industry solutions forever, albeit on premise. Yes, the concept of vertical solutions is that old. What is the value of an industry cloud? How does “industry cloud” differ from “industry solution”? And does this term really describe what industries need? These are only some of the questions that we wanted to discuss with Vinnie Mirchandani as part of aCRMKonvo. Hurricane Ian intervened and Vinnie had more important things to do than a CRMKonvo. Luckily, everything turned out well for him. Good for the CRMKonvos team, that friend and Enterprise Irregular Jon Reed could jump in to what turned out to be an even more interesting topic than we hoped for. We will continue this discussion with Vinnie on a later occasion. He has quite something to say about industry clouds, and comes from another angle than Jon. The problem with industry clouds Most business applications have started their life as horizontal applications. This makes a lot of sense, as a good deal of the functionality that a business needs, and the application offers, is not exactly industry specific. Instead, it is applicable across a range of industries. Therefore, business software vendors at first concentrated on developing horizontal functionality, as this functionality is reusable across and customized for numerous industries. Often with only little effort. This applies to SaaS software as well as it did apply to on premise...
