Sramana Mitra: Which persona generates the bulk of the revenue?
John Davagian: The machine maintenance persona generates the bulk of the revenue.
Sramana Mitra: Machine maintenance performed by a human being.
John Davagian: Correct. Done by a human, but the extraction of data of how the machine is doing is not necessarily done by a human being.
Sramana Mitra: How is that use case priced? Is it per human user or per machine basis?
John Davagian: For that particular use case, it’s based on the maintenance users or repair techs that are in your facility.
Sramana Mitra: Let’s switch gears and talk about where the industry is going. I will preface this by drawing an analogy from the MarTech space. I had a wonderful conversation recently with the founder of HubSpot. Dharmesh was saying that when he and his co-founder envisioned HubSpot, they wanted to create an integrated workflow for doing inbound marketing.
They knew that they were trying to provide a lot of functionality and each of those was categories in their own rights. They didn’t think that they would be number one or number two in any of those categories. They were going to be an average player in each of those categories, but their value proposition was a comprehensive workflow that is fully integrated.
Over time, they improved each of the categories and now, they’re number one or number two. This is an interesting strategy. What you described earlier reminds me a little bit of that conversation.
John Davagian: I think you read it perfectly. We found our wedge into these accounts. If I were to give you what I think is coming and what is in our future, if you take a step back and think about e-commerce, the next phase is highly personalized in nature.
For example, sneakers can be personalized for you. We already went through the t-shirt and how to optimize all of that. Think of all the products that are going to be personalized for you. It’s critical because it’s what consumers demand. It’s great that you can then personalize it on an e-commerce site.
Then you think about the digitalization of that entire value chain that needs to occur. That digitalization from supply chain all the way through from manufacturing to last-mile delivery. We’re talking about last-mile delivery which is a little bit different than the last-mile delivery that we read about with DoorDash and others. Some of the products we buy on the internet are not going to fit in the car.
When you think about unifying that entire value chain, the companies that do that are going to get a significant competitive advantage. The alignment that you talked about with regards to HubSpot – their thesis was, “If we provide this entire chain, we’re going to have a competitive advantage over other companies.” Inbound marketing was their wedge. Ultimately, what they provided was the entire ecosystem because they recognized that connecting all these parts together and orchestrating everything created more efficiency and productivity for the customer they were working with.
I think this is coming. It’s led by e-commerce. We’ve gone through the phase of personalization and how we want to buy and procure products as consumers and businesses. These manufacturers are going to have to adapt. The only way to get there is how do you digitize the entire value chain. If we put it all within one streamlined solution, it’ll remove so many friction points. That’s what I see coming.