🧠How To Quickly Assess The Strategic Potential of a B2B SaaS Startup
Knowledge is Power [Francis Bacon]
Can a simple framework change your life?
Doubtful. But it can change the way you think. Which can change the way you act.
Here's a simple way to view the massive B2B SaaS Product Landscape [by Oji Udezue]
The B2B SaaS Frequency x Department Breadth Matrix
In this edition, we explore the strategic framework that categorizes enterprise workflows into four segments based on their frequency and broad applicability. Here is a quick dive into each category:
High Frequency, Everyone (HiEv) Workflows
Definition: Tasks engaged in frequently by almost every member in an organization.
Examples: Communication, calendaring, and note-taking.
Tools: Email, team chat, calendar software, and authoring tools like GDocs and Evernote.
Market Potential: Massive total addressable market (TAM); ideal for fast-growing SAAS ventures targeting large enterprises.
Key Players: Microsoft, Google, Slack, and Zoom.
Strategy: Focus on transforming your workflow tools to fit this category to harness greater value.
High Frequency, Niche (HiNi) Workflows
Definition: Specialized workflows utilized frequently within specific departments.
Examples: Support, marketing, inside sales, and hiring.
Tools: Specialized collaborative tools.
Market Potential: Large TAM with high subscription pricing due to the specialized nature and essentiality of tasks.
Key Players: Zendesk, Intuit, and Hubspot.
Strategy: Leverage expertise in niche areas to create essential, high-value tools.
Low Frequency, Everyone (LiEv) Workflows
Definition: Workflows with a medium frequency of usage, spanning across most individuals in an organization.
Examples: Payroll and HR workflows.
Market Potential: Significant if you can dominate and dictate high subscription prices.
Key Players: Workday and Paycom.
Strategy: Aim for domination to leverage high subscription pricing.
Low Frequency, Niche (LiNi) Workflows
Definition: Infrequently used workflows confined to specific departments.
Examples: Auditing and website help content publishing.
Market Potential: Limited; success hinges on significant efficiency gains.
Strategy: Focus on efficiency improvement to justify the expense.
Missing Elements in the Framework:
Infrastructure SAAS: Often can be categorized as HiEv, but requires robust tools for accurate analysis.
Vertical SAAS: Offers an opportunity to build a unique software ecosystem catering to specific industries such as healthcare and manufacturing.
Takeaway:
Target high-intensity workflows for rapid growth and profitability.
Evolve your strategies to shift towards high-intensity workflows.
Bypass LiNi workflows unless they can offer a remarkable increase in productivity and command high subscription fees.
Align your strategies and focus on high-intensity workflows to fast-track your way to becoming a unicorn in the SAAS sector.
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