Pricing strategies for software companies

Software companies price their products in many different ways, but most are based on some form of a subscription model (Software as a Service / SaaS).. The goal is often to find a price that reflects the value the customer receives while being simple and scalable for the company.

Here are the most common pricing models SaaS companies use:

1. Per-User Pricing Model

This is one of the most common and straightforward models. The price is determined by how many users (or "seats") have access to the software.

• Advantage: This model is easy for customers to understand and provides predictable revenue for the company. Revenue naturally increases as the customer's team grows and more users are added.

• Disadvantage: It can incentivize customers to share accounts to save money, which may limit growth

2. Usage-Based Pricing Model (Pay-as-you-go)

In this model, the customer pays based on how much they actually use the software. This could be based on data storage, the number of API calls, emails sent, or other specific metrics.

• Advantage: The model is fair for customers with varying needs, as they only pay for what they use. It works well for products where value is directly tied to consumption.

• Disadvantage: It can be difficult for customers to predict their monthly costs, making budgeting challenging.

3. Tier-Based Pricing Model ("Good, Better, Best")

This is a very popular model where the company offers different pricing tiers (e.g., Basic, Pro, Enterprise). Each tier includes a different set of features, usage limits, or user counts, with a progressively higher price.

• Advantage: It appeals to various customer segments, from small businesses to large enterprises. Customers can choose a package that fits their needs and budget, and there's a clear path for upgrading as they grow.

• Disadvantage: Choosing the right features for each tier can be complex, and incorrect feature placement might lead to customers choosing the wrong plan or switching to a competitor.

Making the most of your product roadmap

A product roadmap is a high-level strategic plan that outlines the vision, direction, priorities, and progress of a product, or a portfolio of products, over time. It’s essentially a blueprint that shows what you’re building, why you’re building it, and when you plan to deliver it.

Think of it as a storyboard for the product’s future, aligning internal teams (leadership, development, marketing, sales, etc.) and sometimes external stakeholders (investors, customers, partners).

Here are three tips for your product roadmap:

1. Update your product roadmap on a quaterly basis. Helps you validate as is or take away things that aren`t working

2. Don`t be afraid to change the roadmap. Adapt. Always.

3. Communicate your product vision to the customers. Helps the customers plan better

Restaurant tech

We all love going to a restaurant for a meal and a few glasses of wine. A modern restaturant is not only gastronomy, it is also a large, complicated operation, including bookings, seating, orders, people, raw materials, razoredge logistics and so on. Just like many other businesses, these operations are complex and require technology to succeed.

Restaurant tech refers to the tools, software, and hardware designed to improve the efficiency, customer experience, and overall operations of restaurants. This technology spans various aspects of the business, from front-of-house customer interactions to back-of-house kitchen operations. Here’s an overview of the main categories:

1. Front-of-House (FoH) Technology

• Point of Sale (POS) Systems: Modern POS systems handle orders, payments, and inventory tracking. Cloud-based options like Toast, Square, and Clover integrate with other tools.

• Self-Ordering Kiosks: Touchscreen kiosks allow customers to place orders directly, reducing wait times and errors.

• Table Reservation Platforms: Tools like OpenTable and Resy simplify the reservation process for both customers and restaurants.

• Mobile Ordering & Payment: Apps and QR code systems allow diners to browse menus, place orders, and pay from their smartphones.

• Digital Menu Boards: Dynamic displays that can show menu items, specials, and promotions.

2. Back-of-House (BoH) Technology

• Kitchen Display Systems (KDS): Screens replace paper tickets, helping kitchens streamline orders and reduce errors.

• Inventory Management Tools: Software like BlueCart or MarketMan helps monitor stock levels, track waste, and manage supply orders.

• Food Safety Technology: Tools for temperature monitoring, automated compliance tracking, and expiration alerts.

3. Delivery & Takeout

• Third-Party Integration: Platforms like Uber Eats, DoorDash, and Grubhub help manage online orders and deliveries.

• Native Delivery Solutions: Some restaurants use in-house platforms for better control and to avoid high commission fees.

• Delivery Route Optimization: Software to streamline delivery logistics for speed and cost-efficiency.

Many of us have watched the TV-series “The Bear” wondering why it is so chaotic in a restaurant. Well a well run, digitalized operation does not create good TV drama.

Application of drones

In the modern era, where technological advancements define the pace of innovation, drones—unmanned aerial vehicles (UAVs)—have emerged as versatile tools reshaping industries and unlocking new opportunities. Originally designed for military purposes, drones have transcended their origins to become indispensable assets in various fields. Businesses, startups, and enterprises are increasingly leveraging drone technology to gain a competitive edge, reduce costs, and improve efficiency.

The adoption of drones is driven by their unique ability to access challenging areas, collect data efficiently, and perform tasks with precision. The global drone market is projected to grow exponentially, with applications spanning agriculture, construction, logistics, and beyond. For forward-thinking businesses, understanding and capitalizing on drone applications can be a game-changer. Drones have a potential for the following business applications:

1. Agriculture

Drones are revolutionizing agriculture through precision farming. By capturing high-resolution aerial images, drones enable farmers to monitor crop health, detect irrigation issues, and optimize pesticide application. This data-driven approach enhances productivity and sustainability, ensuring higher yields and cost savings.

2. Construction and Real Estate

In construction, drones streamline site surveys and create detailed 3D models, saving time and reducing errors. Progress monitoring through aerial imagery ensures projects stay on track. For real estate professionals, drones offer stunning aerial views and virtual tours, attracting potential buyers and investors with immersive property presentations.

3. Environmental Conservation

Drones play a vital role in monitoring wildlife and tracking environmental changes. From observing endangered species to assessing the impact of deforestation, drones provide invaluable insights that drive conservation efforts. They are also employed in pollution tracking, helping authorities identify and address air and water quality issues.

4. Delivery and Logistics

Pioneered by companies like Amazon and DHL, drone-based delivery is revolutionizing logistics. From delivering e-commerce packages to transporting medical supplies in remote areas, drones offer a faster, more efficient alternative to traditional delivery methods. This is particularly impactful in disaster-stricken regions where rapid aid is crucial.

5. Emergency and Disaster Response

In emergencies, drones are invaluable. They assist in search-and-rescue operations by locating individuals in inaccessible areas. Thermal imaging-equipped drones detect fire hotspots, aiding firefighting efforts. Post-disaster, drones assess damage, providing critical information to streamline recovery efforts.

6. Photography and Videography

In the creative realm, drones have redefined photography and filmmaking. Capturing unique aerial shots for movies, advertisements, and events has never been easier. Their ability to cover large areas makes them ideal for documenting weddings, sports events, and festivals.

7. Security and Surveillance

Businesses and governments are utilizing drones for enhanced security. From monitoring large-scale events to inspecting industrial sites, drones provide real-time surveillance. Border patrol and law enforcement agencies leverage drones to improve public safety and security measures.

8. Mining and Energy

In the energy sector, drones inspect pipelines, wind turbines, and solar farms, reducing the need for manual inspections in hazardous conditions. Similarly, in mining, drones map mineral deposits and ensure worker safety by identifying potential risks.

Robotics

Robotics is a branch of engineering and science that focuses on the design, construction, operation, and use of robots. It involves the integration of various fields such as mechanical engineering, electrical engineering, computer science, and artificial intelligence. Robotics encompasses everything from the creation of robots that perform simple tasks to advanced autonomous systems capable of complex behaviors.

Key components of robotics include:

1. Sensors: Devices that detect changes in the environment and provide data for the robot to process.

2. Actuators: Mechanisms that enable robots to move and perform physical actions.

3. Control Systems: Algorithms and software that dictate how a robot responds to sensory input and executes tasks.

4. Artificial Intelligence: Techniques that allow robots to learn from and adapt to their environments.

Robots can be found in various applications, including manufacturing, healthcare, exploration, and even everyday tasks like vacuuming or lawn mowing. The field of robotics continues to evolve, with ongoing advancements in technology and AI leading to more sophisticated and capable robots.

Here is an informative video about the topic:

Technology disciplines

We have all heard the buzzwords. Fintech, Greentech, Biotech. These are different technology disciplines or space which a company operates within. Here are some examples of technology disciplines:

1. FinTech (Financial Technology)

• Focuses on technology-driven innovations in financial services.

• Examples: Digital payment systems (PayPal, Stripe), blockchain, cryptocurrencies, robo-advisors, and insurtech.

2. AgriTech (Agricultural Technology)

• Enhances agricultural productivity and sustainability through technology.

• Examples: Precision farming, vertical farming, agri-drones, and AI-powered crop monitoring.

3. BioTech (Biotechnology)

• Combines biology and technology to develop medical, agricultural, and environmental solutions.

• Examples: Genetic engineering, CRISPR, biopharmaceuticals, and biofuels.

4. MedTech (Medical Technology)

• Applies technology to healthcare for better diagnosis, treatment, and patient management.

• Examples: Wearable health devices, robotic surgery, telemedicine, and medical imaging.

5. EdTech (Educational Technology)

• Uses technology to enhance learning experiences and educational delivery.

• Examples: Online learning platforms (Coursera, Duolingo), virtual reality classrooms, and AI tutors.

6. CleanTech (Clean Technology)

• Focuses on reducing environmental impact and improving sustainability.

• Examples: Renewable energy technologies (solar, wind, geothermal), energy storage systems, and water purification tech.

7. FoodTech (Food Technology)

• Innovates in food production, distribution, and consumption.

• Examples: Lab-grown meat, food delivery apps, meal kits, and AI for food safety.

8. PropTech (Property Technology)

• Enhances real estate management, transactions, and development through technology.

• Examples: Smart buildings, real estate marketplaces, and IoT-based property management systems.

9. AutoTech (Automotive Technology)

• Focuses on advancements in automotive design, manufacturing, and user experience.

• Examples: Autonomous vehicles, electric vehicles (EVs), and connected car systems.

10. AeroTech (Aerospace Technology)

• Develops innovations in aviation and space exploration.

• Examples: Spacecraft, drones, satellite technology, and supersonic travel.

11. MarTech (Marketing Technology)

• Uses software and tools to enhance marketing efforts.

• Examples: AI-driven ad targeting, CRM platforms, and social media analytics.

12. CyberTech (Cybersecurity Technology)

• Focuses on protecting digital systems and data from cyber threats.

• Examples: AI-powered threat detection, encryption, and identity management systems.

13. DeepTech

• Concentrates on groundbreaking scientific and engineering advancements.

• Examples: Quantum computing, nanotechnology, and artificial general intelligence (AGI).

14. HealthTech

• Broader than MedTech, focusing on health and wellness solutions.

• Examples: Mental health apps, fitness trackers, and personalized health platforms.

15. GreenTech

• Aims to mitigate environmental challenges through innovative technologies.

• Examples: Carbon capture, sustainable packaging, and eco-friendly energy solutions.

16. SportsTech

• Enhances athlete performance, fan engagement, and sports management.

• Examples: Wearable fitness trackers, VR for training, and data analytics in sports.

17. GovTech (Government Technology)

• Innovates public services and governance through technology.

• Examples: Digital identity systems, e-governance platforms, and AI-driven policy analytics.

18. InsurTech (Insurance Technology)

• Reinvents insurance processes and customer experiences using technology.

• Examples: Usage-based insurance, blockchain in claims processing, and AI risk analysis.

19. EnergyTech

• Innovates in energy production, management, and distribution.

• Examples: Smart grids, energy storage systems, and nuclear fusion technologies.

20. RegTech (Regulatory Technology)

• Helps businesses manage regulatory compliance using technology.

• Examples: Automated compliance checks, anti-money laundering (AML) systems, and fraud detection.

21. RetailTech

• Enhances retail operations and customer experiences through technology.

• Examples: E-commerce platforms, augmented reality shopping, and inventory management systems.

22. LegalTech

• Uses technology to streamline legal processes.

• Examples: Contract automation, AI-driven legal research, and e-discovery tools.

23. ConTech (Construction Technology)

• Focuses on improving construction efficiency and safety through innovation.

• Examples: 3D printing in construction, AI-driven project management, and modular building systems.

Technology strategy

A great idea does not guarantee great profits. If a company's R&D funds are going to pay off in profitable products or services, it needs a technology strategy that works in concert with its broader competitive strategy.

A technology strategy is a structured plan that defines how an organization will use technology to achieve its objectives. It’s not just about adopting the latest tools or trends—it’s about aligning technological capabilities with business priorities. Think of it as a bridge between where your organization is today and where it aims to be tomorrow.

At its core, a technology strategy answers these critical questions:

• What role does technology play in achieving our business goals?

• Which technologies should we invest in, and why?

• How do we ensure our technology evolves alongside our business needs?

Key Elements of a Successful Technology Strategy

1. Clear Alignment with Business Objectives
   Start with your organization's vision and mission. Technology should be a tool to achieve these—not an end in itself.

2. Technology Roadmap
   Create a timeline of initiatives, from deploying new software to upgrading legacy systems. A roadmap helps prioritize investments and track progress.

3. Focus on Scalability and Flexibility
   Technology should evolve with your business. Invest in solutions that can adapt to changes, such as cloud computing platforms or modular software architectures.

Creating a technology strategy involves collaboration, planning, and execution. As technologies like generative AI, 5G, and quantum computing become mainstream, organizations must embrace a dynamic approach to strategy. The focus will shift from simply adopting technology to integrating it seamlessly into every facet of the business. Organizations that succeed will be those that treat technology as a strategic enabler—one that drives not just efficiency but also innovation and growth.

Here is an excellent video from Cambridge University explaining how to create a technology roadmap: