New Model Aligns Vendor and Customer Goals, Eliminating Vendor Lock-In
Why do CFOs and CIOs struggle with traditional SaaS subscription models? HighRadius, a provider of 190+ AI agents for the Office of the CFO, is addressing this issue with its innovative Outcome-Based Pricing (OBP) model. This new approach ensures customers only pay a fraction of the realized gains based on P&L impact, with zero implementation and subscription fees until go-live.
HighRadius is redefining the way CFOs and CIOs approach SaaS solutions,” said Sashi Narahari, CEO of HighRadius. “Our OBP model aligns our goals with those of our customers, ensuring that we are both invested in achieving measurable business outcomes.
The Problem with Traditional SaaS Models
Traditional SaaS models, governed by ASC 606, require companies to standardize and recognize revenue based on contractual obligations. This approach is misaligned with the dynamic, outcome-driven needs of modern businesses. Less than 40% of software buyers report being satisfied with the value delivered relative to the cost they pay, leading to vendor lock-in and high switching costs.
This misalignment creates friction, budget overflows, and change orders, eroding trust between vendors and customers. The need for a new model that aligns vendor and customer goals is urgent and specific to the CFO’s office.
The Controlled Group Experiment
Just as a scientific experiment tests the efficacy of a new drug, HighRadius conducted a 24-month controlled experiment to validate its OBP model. The experiment involved two groups: one with a formal Mutually Agreed Success Criteria (MASC) document and measurable baseline and target metrics, and another without MASC.
The results were clear: customers who went through the MASC process achieved their business outcomes, while those without MASC experienced frustration and misalignment. This experiment underscores the importance of aligning on business outcomes for successful project completion.
HighRadius’ Outcome-Based Pricing Model
HighRadius introduces a groundbreaking OBP model that eliminates implementation and subscription fees until go-live. Customers only pay a fraction of the actual savings realized, ensuring both parties are incentivized for success. This model is designed to eliminate vendor lock-in and align vendor and customer goals.
By eliminating implementation fees and tying earnings directly to the impact on a customer’s P&L, we are creating a win-win scenario,” said Narahari. “This model ensures that both HighRadius and our customers are focused on achieving measurable business outcomes.
Future Outlook
The future of SaaS in the CFO’s office is evolving, and HighRadius is at the forefront of this change. With its OBP model, the company is setting a new standard for vendor-customer alignment and value creation. As more CFOs and CIOs recognize the benefits of this approach, the traditional SaaS model may become obsolete.
HighRadius has already seen success with this model, driving value creation for over 1,500 enterprises, including 3M, Unilever, and GE Healthcare. The company’s commitment to innovation and customer success is evident in its consistent recognition as a market leader by Gartner, IDC, and Forrester.
Conclusion
HighRadius’ OBP model is a game-changer for CFOs and CIOs, addressing the critical issue of vendor lock-in and misaligned goals. As the industry continues to evolve, how is your organization preparing for this shift? Join the conversation in the comments below.
Chapter 5: About HighRadius
HighRadius provides a single Agentic AI platform for the Office of the CFO. It integrates 190+ agents that orchestrate end-to-end processes across Order-to-Cash, Close & Reconciliation, Consolidation & Reporting, Accounts Payable, B2B Payments, and Treasury. HighRadius guarantees operational KPI improvements by mapping them to specific agents on the platform. With Speed-To-Value implementation methodology, HighRadius drives value creation for 1500+ enterprises such as 3M, Unilever, Red Bull, GE Healthcare, Konica Minolta and more.
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