Led by Reagan Lancaster, SourceTap helps software companies execute at a higher level, doing more with less.
We assist technology companies of all sizes to monetize and execute their revenue in multiple proven models through 3rd parties, international expansion, concentrating on verticals, or more product specialization.
We have assisted many small companies to help them achieve their goals… and building sales organizations. And setting up consulting organizations and support models that can achieve growing revenues.
We understand SaaS, cloud, enterprise, direct, and indirect models and the demands of running them in a global organization. We can assist companies that may decide to go public and hiring top tier management teams. We work with companies to help them acquire companies to extend their product line, or work with companies looking for an exit, or want to be acquired.
We can help with consulting pricing, development pricing to make these models run smoothly.
Overall, SourceTap is a high end management and consulting company that knows the software business through our creativity and experience is what has made us so successful.
Want to know about Tige Investments? Click here.
NEW Books – The Gorilla Dance: Leadership For Executives by Reagan Lancaster. Available now for FREE on Google Books.
Reagan Lancaster — Quarter Horse News Feature Story by Amber Hodge – See Full Quarter Horse News Article
PR Newswire – Reagan Lancaster Inducted into University of North Texas Business Hall of Fame – Read Now
Reagan Lancaster on “International”Expansion” – Direct Link Here
Find out what people are saying about us on LinkedIn.
Reagan Lancaster on “How To Think Like A CEO” – Direct Link Here
Reagan Lancaster (www.reaganlancaster.net) of SourceTap / Intellect Software / Tige Investments / Lancaster Ranch speaks on how Corona has effected the stock market. Should we stay in or jump out?
For more info on Reagan Lancaster visit:
Reagan Lancaster (www.reaganlancaster.net) of SourceTap / Intellect Software / Tige Investments / Lancaster Ranch
For more info on Reagan Lancaster visit:
One of the major differences in selling your software to a large company is that they have many people in a developed organization that could use your product. There are many decision-makers, influencers, and companies out there who have distributed buying control at a regional or functional or product-specific area that could engage your company or buy your products.
Often sales organizations call on one piece of a company and tell everybody that the company isn’t buying, but they end up buying your competitor’s product in another division or another location. You have to call on everyone in the organization to find an executive who wants to grow and be known in the company as a mover and a shaker, and who’s interested in business-process change and savings he could attain.
Oftentimes the compensation structure of an executive and the product savings can be aligned to make an executive successful and your business successful in selling to that individual. Remember in selling to a small organization or large organization you have to have the 3 legs of the stool, the executives, the IT department, and the users for a functional area that’s going to utilize the product.
Learning the language of a big companies’ industry and competitors and financial position in the market with earnings and stock price and key objectives in their annual report and 10k will help you sell your products into a large organization. There are also large influencers in big organizations, like their big customers, their big suppliers, their auditors. Other tech companies doing business with them that you’re aware of are all people you have to sell on your company. There are so many rocks to turn to reach all the people that can influence a decision for a large company.
It is also key to make sure you’re dealing within a large company, a person who can sign for however big your contract is, and they’ve done it before. You also need to understand the approval process in a large company. You also need to understand (9in contracting with a large company) their terms and conditions along with your terms and conditions have to be reviewed by a legal counsel and need to be involved in the process.
The beauty of dealing with large companies in a good economy, growing is that they need new processes to be put in place. Another important economic impact on selling to a big company is if they’re in deep trouble financially, they are willing to listen to new ideas for cost-savings programs.
There are only so many big companies out there in the world, so you have to be careful and make sure you are professional, you make a great first impression, and you set expectations low and over-deliver, and be easy to work with and be completely, completely honest with incredible integrity.
Most US companies start off understanding the US market with regions, cut-up throughout the US and regional organizations to cultivate those customers in those locations with local/regional people. As the opportunity arises to sell to a European multi-national company (like Siemens) or a Japanese multi-national company like Toshiba, or a Brazilian multi-national company like Emriare companies can take their successes with those US subsidiaries of these international companies to develop the countries further.
Once they get a few (3-4) accounts in a particular country generation money and income with projects that are started in the US and are brought back to their HQs then companies can start hiring country managers and taking US-based employees who have lots of experience with the company and products and sending them to the country managers to build core-competencies of your company in those foreign companies.
It’s good to get legal representation and often sales agents to help make introductions in those countries as you’re building the specific country of focus.
One of the companies that come to mind is Samsung, which had a consumer electronics organization located in the US that was focused on consumer electronics retailers (like Best Buy) to gather forecast information and send it back over to Korea. With the success of the forecasting system that we put in place, and the value of forecast accuracy improvements of 40% it created an easy sale back to Samsung HQ in Soul Korea to allow us to do worldwide-forecasting including cell phones, TVs, and other areas on the consumer-electronics area. From our success at Samsung, it drove LG and eventually drove Posco and other large Korean companies.
There have been many attempts to run the Eumea organization with a leader from Italy or the UK or Germany but my specific success was with after all these failures with a Dutch business executive who spoke 7 languages, and the Dutch people are known as some of the best business people in the world, getting along with all of the European businesses.
In South America, there’s a large space with not that many companies outside of the MBA program. That’s Mexico, Brazil, Argentina. In developing South America those are the 3 major hubs you need to start with to build out your organization – with the same concept of a foreign multi-national by taking back the success to the home country.
Another strategy to help develop international expansion is to sign up 3rd party resellers who will invest the resources and marketing dollars for your products in their home country so that you get immediate reach as soon as possible. Sometimes it looks very attractive to get a 3rd party reseller to give you cash upfront for built-in discounts into their countries, but oftentimes a critical mistake they make is that the discounts they offer are so deep, often it’s not as successful as you selling and building it yourself. That’s typically not known up-front, but later down the road (hindsight).
Also, localizing your product for each country is often required so that your international pricing has to be more expensive. Typical companies run international pricing to 1.25-1.5% depending on the currency on the country, how far it is, etc. – and it could be higher in a different country. That’s also a mistake companies often make, not changing pricing for international sales.
The fundamentals of technology consulting have to be solution-based that focuses on a value proposition that can be achieved in short order.
Technology consulting gets a bad rap because it’s hourly focused often on just getting a product running without attachment to a business process or improvement inside a business. Having quantified, measurable results in 90-day increments or business releases is the key to successful consulting projects.
From a customer standpoint, technology consulting has generally been delivered like legal fees. Hourly based with no end in sight. Today’s corporations need to be critical of technological organizations in the fact that they deliver real results quickly that have quantified financial incentives for the company and even a bonus for the technology consulting organization.
One of the most famous companies in the history of technology consulting companies was a company called the Thomas group. A boutique tech consulting corporation that gained 100% of their fees based on results. Their consultants were called Resultants. This process of 90-day increments, smaller pieces of a total project, with the eye on value stops runaway projects, projects that are over budget, and projects that never deliver.
Before starting a technology project you need to understand the as-is requirements of how current businesses run. That needs to be mapped to the to-be process. And when these two processes are laid out, the difference in the processes is going to be the value that is going to be achieved. Buy-in on technology consulting projects has to be the 3 legs of the stool. The executive commitment to getting the new tech up and running with the following benefits and buy-in, buy-in from the IT organization to make the data available and support the users, the existing and to-be systems in place. And 3 the users have to be bought-in to identify the benefits to buy-in. Based on value, the project can reach 100% success.
The makeup of a technology consulting organization focused on value is a little different than a traditional product-specialist consulting organization. Typically deep subject matter experts or consultants with experience in doing projects in a specific industry or strategic consulting people from McKinzie, Booz Allen, Bain, and the like brings a different level of mapping customer requirements to utilizing with to-be processes. These people are in addition to standard project managers, detailed project specialists, and developers. These are the requirements of the new technology organizations that will be able to thrive in a product-oriented software company or a standalone tech organization.
Most people believe that a great idea that will change an industry will change the way something is done, or that revolutionizing a process is all it takes for an entrepreneur to gain the American dream… hitting a home run in the software business.
Most companies start with this great idea, start developing the software with software engineers with limited subject expertise for 2-3 years until they’re ready to have something to sell.
A better approach would be to identify the business problem and the solution jointly with a customer with a high level of need who views the new tech people as experts, or the best people to build a solution for this problem. If the value is great, and the technical expertise is better than is available in the market, customers will allow and pay to joint-develop their requirements put into a new technology platform and be delivered for the savings. In this fashion, the entrepreneurial idea begins an execution process to go live with an abundance of subject matter expertise and real-world requirements and problems to be solved during this implementation.
The original joint-development partner and customer need to be a name that is respected and looked at as a market leader so that other companies can glean respect of their requirements “if they were able to be successful with the market leader, then they can do it for us”.
Continuing to build on this first success building out the product with about 10 customers gives a strong narrative that you can accomplish and execute the business problem with your solution. After 10 customers, then the scalability of what you’re doing needs to be put into one product as opposed to ten joint-development projects as a lowest-common-denominator to go into other companies. This allows the company to scale.
This process is almost 100% counter to what most software entrepreneurs start with. Execution is the key and there are many examples of execution in the market today. One of the easiest ones to look at is the company Seattle Consulting who wrote MS-DOS and was later re-sold to Microsoft to IBM. Microsoft found the business problem and the customer who could use the technology. They didn’t sit in a room and develop for 3 years without a customer.
Another example of developers developing a product without customers or without an organization that could leverage it with experts is Xerox and Park Palo Alto research center. They’re the ones who developed windows, the mouse, icons, the whole windows environment. Steve Jobs and Wozniak took these inventions and went and marketed them directly while Xerox who was a copier company and focused on copiers, couldn’t get their organization to focus on those products. They developed the products and failed.
In conclusion, the last example of joint-developing a product with a customer is how Oracle and Larry Ellison and Bob Minor built an SQL database for Amdahl Corporation written in C. They co-owned the code they built and took it to market, and today Oracle is one of the largest software companies in the world.