autodesk

Businessmodel of Autodesk

Customer Segments

Autodesk has a niche market business model, with a specialized customer segment. The company targets its offerings at design professionals, primarily those in the architecture, engineering and construction; manufacturing; and digital media, consumer, and entertainment industries.

Value Proposition

Autodesk offers four primary value propositions: accessibility, cost reduction, performance, and brand/status.

The company creates accessibility by offering a wide variety of options. It has acquired numerous firms, adding several new capabilities to its portfolio. These include the following:

  • netfabb – Added software solutions that increase efficiency and reduce production costs in additive manufacturing and 3D printing
  • Shotgun Software – Added a cloud-based production management tool that allows digital studios to track, review, and collaborate on images and projects
  • Within Technologies – Added technologies and tools for advanced manufacturing
  • Delcam – Added a range of design, inspection, and manufacturing software that enables automated CADCAM solutions for various industries
  • Graitec – Added BIM (Building Information Modeling) technology for structural fabrication and detailing The company reduces costs by offering several types of free trials for potential customers. These include free suite trials, free CAD software trials, and free animation software trials.

The company has demonstrated strong performance, as evidenced through various customer testimonials. Design firm HPI Himmen used its solutions to build a comprehensive BIM-workflow. Engineering firm Melia Smith & Jones used its Sofistik product for effective 3D rebar modeling. ABT Netherlands used Sofistik to deliver an innovative BIM-based detailing and modeling solution.

The company has established a strong brand as a result of its success. It is the most broadly-used CAD solution for 2D non-specialized applications. It has been used for many prestigious projects, from Tesla electric cars to the New York Freedom Tower. Lastly, it was used to do work in the films of the last 21 Academy Award winners for Best Visual Effects.

Channels

Autodesk’s main channels are its website and its direct sales team. It also acquires customers through a network of approximately 2,000 distributors and resellers. The company promotes its offerings through its social media pages, webcasts, workshops, seminars, direct mailings, telemarketing, sponsorships, advertising in trade and business journals, and conferences.

Customer Relationships

Autodesk’s customer relationship is primarily of a personal assistance nature. The company assists customers in the following ways:

Support Services – The company offers three levels of support: Basic, Advanced, and Enterprise Priority Support. Service is provided through phone, e-mail, and social media.

Training Services – The company offers classes about its products through Authorized Training Centers (ATCs). Courses include sample exercises emphasizing real-world applications. It also maintains Authorized Academic Partners, a network of instructors that can provide onsite education.

Consulting Services – The company maintains a team or professionals that provide business consulting as well as solution implementation and custom development guidance for customers.

Despite this orientation, there is a self-service component. The company’s website features various self-help resources including online classes, articles, tutorials, and answers to frequently asked questions. There is also a community element in the form of forums where clients can interact.

Key Activities

Autodesk’s business model entails designing and developing its software solutions for customers. The company also utilizes independent contractors to conduct some product development activities.

Key Partners

Autodesk maintains the following partnership programs:

Consulting System Integrator Partners – Consulting firms that provide business process transformation and technology integration services to customers. Specific partners include Avineon, CCDI, ENGMEX, isBIM, Kalypso, PCO Innovation, Sonda, Spatial Business Systems, and TOSS.

Resellers – Companies that purchase and sell Autodesk products; they include the following:

  • Autodesk Authorized Value Added Resellers – Offer general Autodesk product information, training, and support.
  • Autodesk Authorized Off-Campus Resellers– Offer educational sales and marketing expertise to educational institutions and their students.
  • Autodesk Authorized On-Campus Resellers– Offer Autodesk and Discreet software to students, faculty, and staff. They are located on academic institution campuses. Autodesk Developer Network – Software developers that extend the company’s products and technologies to create enhanced software solutions. There are over 4,100 members worldwide.

Strategic Partners – Leading corporations that work with the company on development and optimization activities, go-to-market and sales engagements, co-marketing initiatives, and long-range, fundamental engineering projects. Specific partners include Advanced Micro Devices, Apple, Citrix, Dell, Hewlett-Packard, Intel, Microsoft, NVIDIA, Oracle, and Lenovo.

AEC Partners – Architecture, Engineering and, Construction (AEC) firms that work with the company to provide complementary solutions to customers in specific industries; they include the following:

  • Industry Partners – Work with the company to develop complementary software solutions, hardware products, and cloud offerings for industry-specific end-users. Specific partners include Eagle Point Software, FM Systems, IDAT, Keynetix, Leica Geosystems, and Pitney Bowes.
  • Solution Associates – Integrate and make their hardware, software, or cloud-based offerings interoperable with the company’s specific industry solutions. Specific partners include aSa, CMiC, DAQRI, dRofus, FabSuite, FARO, iConstruct, IDEA StatiCa, Info Tech, and Izumi Systems. Autodesk provides its partners with various forms of support, as well as access to the Partner Portal, which offers toolkits, product news, training resources, and customized price lists and promotions.

Key Resources

Autodesk’s main resources are its human resources. These include its staff of software developers and scientists engaged in research and development. It also depends on its training staff for instruction, consulting staff for advisory services, and customer service staff for support.

Cost Structure

Autodesk has a value-driven structure, aiming to provide a premium proposition through significant service and frequent product enhancements. Its biggest cost driver is sales/marketing, a fixed cost. Other major drivers are in the areas of research/development, a fixed cost, and cost of revenues, a variable expense.

Revenue Streams

Autodesk has two revenue streams:

License and Other – Includes the following:

  • License – Revenue generated from the sale of term-based licenses, perpetual licenses, and Creative Finishing

  • Other – Revenue generated from training, consulting, Autodesk Developers Network, and customer support for Creative Finishing Subscription – Includes the following:

  • Maintenance revenue from software products
  • Maintenance revenue from term-based enterprise and desktop subscription offerings
  • Revenue from cloud service offerings
Written on October 25, 2017