Are you tired of hearing about the latest buzzword in the tech world and feeling left behind? Well, buckle up because we’re about to take a deep dive into investing in the world of Configuration, Pricing, and Quoting (CPQ) software.
Who better to guide us through this complex and exciting market than Patrik at cpq.se, a true expert in the CPQ space.
Market Dynamics: It’s no secret that the demand for CPQ solutions has skyrocketed as businesses embrace digital transformation. Patrik noted that we are focused on the EU market and have deep insights into it, but don’t have much knowledge of the North American market.
The EU market is driven by the need for businesses to go digital and meet the demands of the modern market. Patrik noted that the maturity in different segments or verticals varies, with some companies being early adopters of CPQ solutions and others just starting to adopt them.
One of the big drivers for adoption is having a CPQ solution so that quotes can be delivered faster than the competition. This is causing other companies in the same vertical to adopt similar solutions.
Driving Growth: The main driver behind the growth of CPQ solutions is the need for companies to go digital, as they are no longer able to sell through traditional channels. The COVID-19 pandemic has only accelerated this trend, forcing companies to quickly adapt to digital selling methods.
Patrik noted that the maturity in different segments or verticals varies, with some companies being early adopters of CPQ solutions and others just starting to adopt them. The drive to keep up with competitors and offer faster quotes is a big factor in the growth of CPQ solutions in the EU market.
Product Capabilities: CPQ solutions are designed to handle the complexities of configuring, pricing, and quoting industrial goods and equipment. Patrik noted that these solutions are capable of handling the most complex products, such as gas turbines or substations, and that the outer limit is usually when a company doesn't have a product, but rather a project that requires engineering work each time it’s sold.
The versatility and capability of CPQ solutions make them a valuable tool for companies in the industrial market, regardless of the complexity of their products.
Customer Adoption: When it comes to customer adoption, Patrik noted that among their customers, best-of-breed solutions seem to be more popular, with only a few customers opting for bundled solutions.
The trend towards best-of-breed solutions speaks to the value that these customers place on having the best tools for the job, rather than a one-size-fits-all solution. The preference for best-of-breed solutions also highlights the importance of having a deep understanding of the market and the solutions available to make informed decisions.
In conclusion, the CPQ software market is growing rapidly, driven by the need for companies to go digital. These solutions have the capability to handle the complexities of configuring, pricing, and quoting industrial goods and equipment, and customers are adopting best-of-breed solutions over bundled ones.
With the expert insights of Patrik and the team at cpq.se, investors can make informed decisions about potential investments in this exciting and rapidly growing market.