Patterns of Extension
After a Vertical SaaS Vendor (VSV) has won its category, it has the opportunity to extend through the value chain. In addition to the merchant, the VSV can sell to the merchant’s suppliers, employees, and consumers. If it is successful, it can start the cycle over again: Win, Expand, and Extend. The businesses who succeed on this path are superlative, with control points across multiple constituents and interlocking workflows. At its highest form, a VSV transforms from a simple tool into a multi-stakeholder platform, setting the direction for an entire industry. The question is, how? The path looks like this: You should put on your goggles, because today we are swimming in the deep end of the pool. I recognize that this essay could be partially characterized as a philosophy treaty—the data points are rare and successfully extended VSVs are few. But I believe that this opportunity is real, and that the next generation of VSV leaders will be platforms and networks that extend int
After a Vertical SaaS Vendor (VSV) has won its category, it has the opportunity to extend through the value chain. In addition to the merchant, the VSV can sell to the merchant’s suppliers, employees, and consumers. If it is successful, it can start the cycle over again: Win, Expand, and Extend. The businesses who succeed on this path are superlative, with control points across multiple constituents and interlocking workflows. At its highest form, a VSV transforms from a simple tool into a multi-stakeholder platform, setting the direction for an entire industry. The question is, how?…
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