OPEXEngine

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Accelerating R&D Value Creation Starts with R&D ROI

OPEXEngine

With the right methodology, cost productivity discipline not only helps fuel steady growth and big initiatives but also are rewarded by shareholders, leading to substantially higher TSR, in both good times and downturns, according to Bain long-term research. The post Accelerating R&D Value Creation Starts with R&D ROI appeared first on OPEXEngine.

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ACCELERATING R&D VALUE CREATION STARTS WITH R&D ROI

OPEXEngine

At OPEXEngine, we continue to bang the drum on the importance for business and finance leaders to measure and benchmark the return on R&D spend. We encourage all SaaS companies to do a simple calculation of their R&D ROI : Divide last year’s R&D expense into this year’s change in revenue (End of 2022 revenue / ARR) – (Start of 2022 revenue / ARR) ———————————————————

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Unlearning the Growth vs. Costs Myth

OPEXEngine

How some companies use this timeless tension as a catalyst for outperformance. At a Glance Caught in the bind of running vs. changing the business, many companies feel they need to “choose” between either margins or growth. Top-quartile companies can achieve both. With the right methodology, cost productivity discipline not only helps fuel steady growth and big initiatives but also are rewarded by shareholders, leading to substantially higher TSR, in both good times and downturns, according to o

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Cutting R&D to Grow GTM Spend : Is it Happening Across Software Companies?

OPEXEngine

During Office Hours with Lee Kirkpatrick , Lee recalled managing a startup through a downturn. The business cut R&D spending to conserve cash. By prioritizing sales & marketing, the company successfully lengthened its runway to increase revenue, which eased the subsequent fundraising. I wondered if a similar pattern existed in the public software markets.

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CFOs to combat downturn with more automation

OPEXEngine

CFOs should think about automation as an “additional teammate” in their financial departments as they look to push digital transformation initiatives forward in the new year. CFOs are bracing for a potential recession as 2023 begins, with some predicting a downturn to start within the first quarter of the new year amid slumping consumer spending and increased costs.

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Cohorts lead to Performance Benchmarks

OPEXEngine

Most SaaS executives can relate to a friendly debate they’ve had at a board or leadership team meeting about what percentage of revenue should come from “upsells” to existing customers or what is “healthy churn.” In these discussions, lots of conventional wisdom is shared, backed up by “benchmarks” that came from an investor, a conference, or another industry source.

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Five Pillars of PLG with Carilu Dietrich

OPEXEngine

Editor’s Note: On a monthly basis Tomasz Tunguz hosts Office Hours with guests within the SaaS and Tech world. On October 19th he invited Carilu Dietrich from Atlassian to speak. Yesterday, Office Hours hosted Carilu Dietrich, marketer at Atlassian & advisor to many iconic product-led growth companies (PLG). She’s seen many different types of businesses from startups to massive publicly traded software companies.

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