Licensing Strategy Formulation and Implementation
Identifying new opportunities for computer software development, and understanding the potential benefits and ramifications of licensing
A government department, TaxMoney@Work, (TM@W) had developed and launched a computer software to manage relationships with it constituents. The development of its own client relationship management system was necessitated because a suitable system was not commercially available. The government department believed that there might be an opportunity to license their system to other government agencies, thereby enabling the recovery of development expenses and perhaps the generation of funds for other initiatives.
In order to assess the potential of licensing, TM@W needed to gain an understanding of:
- the commercial potential of its development,
- channels to market, and
- ramifications of undertaking a licensing program.
To assist the TM@W with assessing the licensing potential for their proprietary custom software, Vertex first gained an in-depth understanding of the product that had been developed. Extensive market research was needed to gain an understanding of the client relationship management challenges that existed in other organizations and the key features of TM@W's system that would be attractive to other potential users. Vertex developed a commercialization approach for TM@W and provided advice regarding about the implications of undertaking a licensing program.
Armed with an understanding of:
- the potential market for their software product,
- probable revenue that could be achieved, and
- effort that would be required in the sale of a license and with the customization of licensee systems;
TM@W was able to make an informed decision regarding the feasibility of pursuing a licensing program.