Navigating Celonis' Growth: Collaborative Strategy for Success
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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Presentation Transcript
Marie Macha Birte Cappenberg Patrick Pohla Simon Prinz
Can you manage the explosive growth of Celonis?
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
01 Management Summary
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
02 Analysis and Alternatives
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
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
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
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
03 Implementation
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
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
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
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
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
04 Financials and Risks
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
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
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
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
05 Conclusion
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
Thank you for your attention! We will happily answer any questions that you might still have.
