What's the "Vertical SaaS" Premium?
A recent discussion with a tech-savvy prospect has inspired this blog on the economic value of building a vertically integrated SaaS platform. The question asked and answered is "How does DiligenceVault deliver greater value than leveraging series of single functionality horizontal SaaS products?"
A vertical SaaS combines the advantages of a SaaS model and resolves multiple pain points for the end user, by integrating multiple functional slices. It derives premium value from being built for customers who share common pain points unique to their industry.
How do you ensure that the vertically integrated solution is much more valuable than the sum of its parts? In other words, how can you make the platform benefit from a conglomerate premium?
In patchwork quilt of tech, we discussed use of disparate applications where inefficiency takes the form of manual data sync, double entry, rote copy-paste tasks, and errors and omissions. Integration of the tech stack creates value by simply eliminating these points of friction.
A vertically integrated tech stack provides for a seamless experience to the end user, improving usability and efficiency. It also reduces the amount of time necessary for training or referring to the users’ manual.
Centralization of information, data, documents, decisions, and processes in a vertically integrated platform creates relevant information for faster decision making.
An integrated platform offers greater security by limiting end points and sources of data loss
So it appears that vertical integration cooks up some tremendous benefits. But how do you create it? What are the key ingredients and how do they come together to create the special sauce? In our case, here’s how:
Mix all the ingredients in a carefully designed architecture, and put them through a sprinter. Host it on a well-calibrated cloud for optimum presentation.
Pro-tip: Do not substitute for optimal result. Frustration free, made at a facility that processes ideas and innovations
Up until this stage, foundational value has been created by the master baking team in delivering a premium product.
If a bake is versatile enough such that it can be consumed as an appetizer, main or side dish, its value also improves tremendously. By making the platform modular, as well as API-based, we ensure that users can build their own version of DiligenceVault. The power of easy integration means that it plays well in the sandbox.
The recipe scales easily for 5 or 150. So no additional effort necessary in interacting with more clients and investment partners.
One man's cake is also another man's cake (not poison in our case). Literally, what works for one user type may result in a terrible experience for another. But if there is a bake which works for you and also works for your clients and investment partners, the resulting gustatory harmony is priceless!
And the most important thing: what if this priceless product is available as a service? You don't have to slave over a hot stove, or go out on a rainy day to pick it up. The bake is delivered to you on a silver platter, with no delivery (implementation) fee, unless you want it loaded with lots of extras...
We very much welcome collaborations on new ingredients and processes in extending the current vertical stack.