Navigating Celonis' Growth: Collaborative Strategy for Success

 
Marie Macha
Birte Cappenberg
Patrick Pohla
Simon Prinz
 
Can you manage the
explosive growth of
Celonis?
 
Agenda
 
3
 
01 | 
Management Summary
 
02 | 
Analysis and Alternatives
 
03 | 
Implementation
 
04 | 
Financials and Risks
 
05 | 
Conclusion
 
Management
Summary
 
01
 
With our strategy 
Collaborative Growth
, you will follow the steps
to a successful growth of Celonis
 
5
 
Strategy
 
Challenges
 
Question
 
Impact
 
3
 
20 %
 
46 %
 
Rising demand for industry-specific solutions might
contradict lean concept
 
Low awareness of Execution Management System
 
Lacking growth strategy for the company
Collaborative
Growth
How is Celonis path to successful growth marked and what are
the steps along the way?
 
Focus on lean core
competency
Provide access t
o 3
rd
 party
developers
Create customer awareness
 
Growth of 3
rd  
party developing
partners p.a.
 
Successful in-house releases
p.a.
 
Customer growth p.a.
 
Analysis and
Alternatives
 
02
Strengths
 
Easy and fast implementation and use
Heterogeneous client base
Lean approach
Deep and rich ecosystem of partners
S
Weaknesses
 
Unclear product offerings
Low awareness of EMS
Lacking growth strategy
 
Both internal and external factors need to be considered –
Strengths being the most influential
 
7
Threats
 
Expected tough competition
Funding of software startups
Opportunities
 
Demand of custom development
Growing heterogeneous client base
W
O
T
 
EXTERNAL  FACTORS
 
INTERNAL FACTORS
 
The external ecosystem of Celonis 
consists of rich and deep
partners to address heterogeneous client needs
 
8
 
Deploy
system
 
Develop
system
 
Long-term
value addition
 
Short-term value
addition
Service Partners
Technology & ISV
Partners
Consulting firms
Celonis trained
professionals
Academic Partners
 
Based on the multi-perspective analysis, we have developed
three alternatives
 
9
 
Multi-
perspective
analysis
 
Combined
key results
 
Alternatives
Collaborative Growth
Remain industry-agnostic to
attract heterogeneous clients
Inhouse Customization
Use in-house development to
reach high independency
Joint Ventures
Build joint venture with
ecosystem partners
Attract growing
heterogeneous client base
Leverage ecosystem
Remain lean approach
Leverage opportunity of
custom development
Claim all revenues
Reach high independency
Leverage opportunity of
custom development
Use experience of
ecosystem
 
The recommended strategy 
Collaborative Growth 
combines the
lean approach while remaining the ecosystem acceptance
 
10
 
Investment
 
1.
 
Lean
 
2.
Criteria
 
Address customer
needs
 
3.
 
Acceptance of
ecosystem
 
4.
Overall score:
Collaborative Growth
Inhouse Customization
Joint Ventures
10
6
7
 
Implementation
 
03
 
The focus on core competencies as a foundation and two pillars
will lead to the success of 
Collaborative Growth
 
12
Attract 3
rd
 party developers
Focus on core competencies
Create customer growth
Collaborative Growth
1
2
 
Focus on core competencies helps not to dilute the
success factors of Celonis
 
13
 
What?
 
Why?
 
How?
Focus on lean development and easy deployment
Customers are attracted by the fast and easy deployment and its consequences
Custom development would increase costs and rollout time significantly
 
 
Encourage
 agile development
 
Develop 
complementing
features
 in-house
 
Keep 
deployment
 as 
easy
 and
fast
 as possible
 
Lean
company
and
product
 
Generate nearly 
immediate
cost savings
 for customers
 
Focus on core competencies
 
Attracting 3
rd
 party developers will fulfill the needs of
customers with low cost for Celonis
 
14
 
What?
 
Why?
 
How?
Provide easy access for 3
rd
 party developers to develop add-on tools for Celonis platform
Customers demand industry-specific solutions
3
rd
 party developers do not have the capacities of Celonis
 
Celonis
 
Software
developer
 
Customer 1
 
Customer 2
 
3
rd
 party developers develop
tools based on customer needs
 
Consequently our platform is
used more and 
revenue grows
 
Help customers to find the 
right
partners
 
Lowering the adoption barriers will make sure that more
customers are experiencing the advantages of Celonis
 
15
 
What?
 
Why?
 
How?
Create further customer growth and awareness
Product generates high costs savings for customers
Awareness of product and convincing the customer
 
Free
trials
 
Wall Street
Journal
Campaign
 
Leverage
academic
network
 
Ecosystem
 
Satisfied
customer
campaign
 
Our timeline lays out the important first steps in implementing
Collaborative Growth
 
16
 
Financials and
Risks
 
04
 
The concrete example of a fragrance manufacturer underscores
the added value of the Celonis software
 
18
Profits
USD +17.4 mn.
Revenue
USD +15.0 mn.
Costs
USD –2.4 mn.
 
The impact of Celonis from a customer perspective
It is important to stress the profitability benefits for customers by underlining
revenue as well as cost benefits
 
USD 15 million 
of additional 
transportation
costs
 were not charged to clients
 
40 full-time equivalents 
were
lost 
each year 
to late order changes
Customer example:
fragrance manufacturer
 
 
 
Different KPIs can be used in order to track the successful
implementation of the 
Collaborative Growth 
initiatives
 
19
 
Target per
year
 
3 releases
 
20%
 
43%
Focus on core
competencies
Attract 3
rd
 party
developers
Create customer
growth
Monitoring 
Collaborative Growth 
will 
ensure sustainable
revenue growth 
throughout the next years
 
Forecasted revenue streams quantify the actual growth of
Celonis throughout the next year
 
20
 
Valuation of USD 2.5 
bn. in 2019
at a 
Price-Turnover-Ratio 
of
 13
 
Assumptions
 
Approx. 
1000 customers
 in 2022
 
F
orecasted revenue streams
Revenues will hit 
USD 2.4 bn. in 2026
 
Average revenue 
growth rate of
43%
 per year as a realistic
assumption
 
The strategy is exposed to various risks which can be mitigated
by effective countermeasures
 
21
 
Impact
 
Probability
A
B
C
 
Risk Matrix
 
Risks and how to mitigate them
 
Conclusion
 
05
 
With our strategy, Celonis is now able to manage a successful
growth while staying lean and innovative
 
23
 
Monday Morning Action
 
Next steps
 
Simplify access for 3
rd 
party developers
Identify smaller companies suitable for
partnering
Implement a free trial system and start
marketing campaigns
1
2
 
Focus on lean development and easy
deployment
 
Lower the adoption and deployment barriers
for customers
 
Provide easy access for 3
rd
 party developers to
develop add-on tools for Celonis platform
 
How is Celonis path to successful growth
marked and what are the steps along the way?
 
Thank you for
your attention!
 
We will happily answer any
questions that you might still have.
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With a focus on collaborative growth and a clear strategy in place, Celonis is poised for success. By addressing internal and external factors, leveraging its rich ecosystem of partners, and staying agile in a competitive landscape, Celonis is on the path to sustainable growth. Challenges like low awareness and competition are acknowledged, but the company's lean approach and diverse client base provide a strong foundation. By following the Collaborative Growth Strategy outlined, Celonis aims to enhance customer growth and drive innovation in the industry.


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  1. Marie Macha Birte Cappenberg Patrick Pohla Simon Prinz

  2. Can you manage the explosive growth of Celonis?

  3. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion Agenda 01 | Management Summary 02 | Analysis and Alternatives 03 | Implementation 04 | Financials and Risks 05 | Conclusion January 2023 Collaborative Growth 3 M nster Consulting

  4. 01 Management Summary

  5. Analysis and Alternatives Implementation Financials and Risks Conclusion Management Summary With our strategy Collaborative Growth, you will follow the steps to a successful growth of Celonis Impact Focus on lean core competency Provide access to 3rdparty developers Create customer awareness Collaborative Growth Strategy 3 Successful in-house releases p.a. Rising demand for industry-specific solutions might contradict lean concept 20 % Challenges Low awareness of Execution Management System Growth of 3rd party developing partners p.a. Lacking growth strategy for the company 46 % How is Celonis path to successful growth marked and what are the steps along the way? Question Customer growth p.a. January 2023 Collaborative Growth 5 M nster Consulting

  6. 02 Analysis and Alternatives

  7. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion Both internal and external factors need to be considered Strengths being the most influential Threats Strengths Expected tough competition Funding of software startups Easy and fast implementation and use Heterogeneous client base Lean approach Deep and rich ecosystem of partners EXTERNAL FACTORS INTERNAL FACTORS S T Opportunities Weaknesses W O Demand of custom development Growing heterogeneous client base Unclear product offerings Low awareness of EMS Lacking growth strategy January 2023 Collaborative Growth 7 M nster Consulting

  8. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion The external ecosystem of Celonis consists of rich and deep partners to address heterogeneous client needs Long-term value addition Celonis trained professionals Academic Partners Service Partners Technology & ISV Partners Deploy system Develop system Consulting firms Short-term value addition January 2023 Collaborative Growth 8 M nster Consulting

  9. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion Based on the multi-perspective analysis, we have developed three alternatives Multi- perspective analysis Attract growing heterogeneous client base Leverage ecosystem Remain lean approach Leverage opportunity of custom development Claim all revenues Reach high independency Leverage opportunity of custom development Use experience of ecosystem Combined key results Collaborative Growth Remain industry-agnostic to attract heterogeneous clients Inhouse Customization Use in-house development to reach high independency Joint Ventures Build joint venture with ecosystem partners Alternatives January 2023 Collaborative Growth 9 M nster Consulting

  10. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion The recommended strategy Collaborative Growth combines the lean approach while remaining the ecosystem acceptance Criteria Collaborative Growth Inhouse Customization Joint Ventures 1. Investment 1 2 3 1 2 3 1 2 3 2. Lean 1 2 3 1 2 3 1 2 3 Address customer needs 3. 1 2 3 1 2 3 1 2 3 Acceptance of ecosystem 4. 1 2 3 1 2 3 1 2 3 Overall score: 10 6 7 January 2023 Collaborative Growth 10 M nster Consulting

  11. 03 Implementation

  12. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion The focus on core competencies as a foundation and two pillars will lead to the success of Collaborative Growth Collaborative Growth 1 2 Attract 3rdparty developers Create customer growth Focus on core competencies January 2023 Collaborative Growth 12 M nster Consulting

  13. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion Focus on core competencies helps not to dilute the success factors of Celonis Focus on lean development and easy deployment What? Customers are attracted by the fast and easy deployment and its consequences Custom development would increase costs and rollout time significantly Why? Focus on core competencies Keep deployment as easy and fast as possible Lean company and product Encourage agile development How? Generate nearly immediate cost savings for customers Develop complementing features in-house January 2023 Collaborative Growth 13 M nster Consulting

  14. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion Attracting 3rdparty developers will fulfill the needs of customers with low cost for Celonis Provide easy access for 3rdparty developers to develop add-on tools for Celonis platform What? Customers demand industry-specific solutions 3rdparty developers do not have the capacities of Celonis Why? Help customers to find the right partners Software developer Customer 2 3rdparty developers develop tools based on customer needs How? Celonis Consequently our platform is used more and revenue grows Customer 1 January 2023 Collaborative Growth 14 M nster Consulting

  15. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion Lowering the adoption barriers will make sure that more customers are experiencing the advantages of Celonis Create further customer growth and awareness What? Product generates high costs savings for customers Awareness of product and convincing the customer Why? Satisfied customer campaign Free trials Ecosystem How? Leverage academic network Wall Street Journal Campaign January 2023 Collaborative Growth 15 M nster Consulting

  16. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion Our timeline lays out the important first steps in implementing Collaborative Growth Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2025 2026 Focus on lean core competency Attract 3rdparty developers Implement easy access and APIs Research customer needs Find right partners Lower adoption barriers Introduce fee trials Launch different marketing campaigns Leverage network January 2023 Collaborative Growth 16 M nster Consulting

  17. 04 Financials and Risks

  18. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion The concrete example of a fragrance manufacturer underscores the added value of the Celonis software The impact of Celonis from a customer perspective Revenue USD +15.0 mn. USD 15 million of additional transportation costs were not charged to clients Profits USD +17.4 mn. Costs 40 full-time equivalents were lost each year to late order changes USD 2.4 mn. It is important to stress the profitability benefits for customers by underlining revenue as well as cost benefits January 2023 Collaborative Growth 18 M nster Consulting

  19. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion Different KPIs can be used in order to track the successful implementation of the Collaborative Growth initiatives Focus on core competencies Attract 3rdparty developers Create customer growth Successful in-house releases 3rdparty developers growth KPI Customer growth Target per year 3 releases 20% 43% Monitoring Collaborative Growth will ensure sustainable revenue growth throughout the next years January 2023 Collaborative Growth 19 M nster Consulting

  20. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion Forecasted revenue streams quantify the actual growth of Celonis throughout the next year Forecasted revenue streams Assumptions $3,000,000,000 Valuation of USD 2.5 bn. in 2019 at a Price-Turnover-Ratio of 13 $2,500,000,000 $2,000,000,000 $1,500,000,000 Approx. 1000 customers in 2022 $1,000,000,000 Average revenue growth rate of 43% per year as a realistic assumption $500,000,000 $- 2023 2024 2025 2026 Revenues will hit USD 2.4 bn. in 2026 January 2023 Collaborative Growth 20 M nster Consulting

  21. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion The strategy is exposed to various risks which can be mitigated by effective countermeasures Risks and how to mitigate them Risk Matrix Risk Countermeasure Impact First mover advantage and lock-in secure market position Gradual entry of new vendors in EMS category A A C Companies focusing only on process with richest data flows Demonstrate clear benefits also in low data processes for customer B B Ensure cybersecurity through steadily up-to- date software Potential cyber attacks C Probability January 2023 Collaborative Growth 21 M nster Consulting

  22. 05 Conclusion

  23. Management Summary Analysis and Alternatives Implementation Financials and Risks Conclusion With our strategy, Celonis is now able to manage a successful growth while staying lean and innovative Next steps How is Celonis path to successful growth marked and what are the steps along the way? Simplify access for 3rd party developers Focus on lean development and easy deployment Identify smaller companies suitable for partnering Provide easy access for 3rdparty developers to develop add-on tools for Celonis platform 1 Implement a free trial system and start marketing campaigns Lower the adoption and deployment barriers for customers 2 Monday Morning Action January 2023 Collaborative Growth 23 M nster Consulting

  24. Thank you for your attention! We will happily answer any questions that you might still have.

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