http://blogs.flexerasoftware.com/ecm/2010/04/governance-for-effective-software-licensing.htmlAs an extension to last week's topic of software license policies, is
the topic of licensing governance. "Licensing Governance" is the
effective management alignment of all licensing (and perhaps pricing)
activities across and ISV's or device manufacturer's organization
structure.
Software licensing has a significant cross functional impact to any
organization. What we see is that the deployment of effective software
licensing can go awry if there is a misalignment among 3 core
functions - commercial intent (what Marketing & Sales intended or
wanted), product design (product structure and design), and IT systems
and processes (the effective deployment of software through the sales
channel.
Take for example, the deployment of a subscription license model for a
company that has historically only sold perpetual licenses. This can be
problematic if many elements of a business don't align: if engineering
doesn't implement "time out" messages in the software, if the ERP
Systems can't adopt new revenue recognition systems, if the CRM systems
can't track expiring licenses, or if sales management doesn't consider
the effect of a new revenue model to sales compensation. The result of
such misalignments can cause product failure, revenue leakage, high
operational costs, and a poor customer experience.
These problems can be minimized and effectively managed by managing
your software licensing infrastructure in a holistic manner by deploying
a centrally managed, cross-functional team that is organized as a triad
it its core. This triad is chiefly responsible for ensuring alignment
among commercial intent, product design, and business systems &
processes for current and future license models. This triad consists of
the following business leaders:
-
The License Czar: This person is the overall
"owner" of the business of licensing and is usually hired specifically
for this role. This person will often have the title of "Director or
Pricing & Licensing", or "Licensing Director". They often report
into a Marketing or Finance Organization. This person is responsible for
organizing a cross functional licensing team, owning the development
and socialization of the license policies that we described last week,
and, managing policy review processes. As if that isn't enough, this
person should be looking to the evolving market needs for licensing,
and, be an effective internal politician.
-
License Architect: The License Architect is in
development, and responsible for the development and deployment of core
license technology and business policy that will be adopted by the
products in a consistent fashion, as prescribed by the corporate policy.
This person may be dedicated to license technology, or, to managing the
deployment of a common services layer.
- System Architect: This person(s) usually resides in
the IT or Operations organization, and is responsible for the
deployment of business processes and systems that enable for the
effective deployment of software with license models prescribed in the
policy document.