Businessmodel of Tyler Technologies

Customer Segments

Tyler Technologies has a niche market business model, with a specialized customer segment. The company targets its offerings at school districts, municipal and county agencies, and other local government offices.

Value Proposition

Tyler Technologies offers one primary value proposition: brand/status.

The company has established a strong brand due to its success. It bills itself as the largest software firm in the United States solely focused on integrated software and technology services for the public sector. It serves over 15,000 local government offices in all 50 U.S. states, Canada, the United Kingdom, the Caribbean, and other global locations. Lastly, it has won many honors, including:

• Ranking on the “Most Innovative Growth Companies” in 2016 by Forbes
• Recognition as one of “America’s Most Trusthworthy Companies“ by Audit Integrity
• Ranking on the *Software *Magazine Software 500 seven years in a row
• Recognition as one of the “Top 100 Places to Work“ by the Dallas Morning News
• Six-time placement on the Barron’s 400 Index ### Channels

Tyler Technologies’ main channel is its direct sales team. The company promotes its offerings through its website, social media pages, direct mailings, and participation in industry events such as webinars, trade shows, and conferences.

Customer Relationships

Tyler Technologies’ customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. The company operates Tyler University, a continuing education platform that offers online courses on software and new technologies. Its website also maintains a “Library” section featuring useful resources such as user guides, documents, images, and videos.

Despite this orientation, there is a personal assistance component in the form of phone, e-mail, and online customer support. There is also a community element in the form of Tyler Community, an online mass collaboration and crowdsourcing tool that enables customers to interact with staff and each other.

Key Activities

Tyler Technologies’ business model entails designing and developing its products and related services for customers.

Key Partners

Tyler Technologies’ key partners include the suppliers that provide it with the equipment it needs to produce its solutions. These suppliers are primarily original equipment manufacturers and distributors. The equipment includes computers, printers, scanners, peripherals, office automation software, and operating system software.

The company also works with technology firms and associations that provide complementary solutions for its customers. The solutions are in areas such as business intelligence, online purchasing, online payments, asset management, and GIS mapping. Specific partners include Microsoft, ESRI, Cloud Security Alliance, and The International Association of Privacy Professionals.

Key Resources

Tyler Technologies’ main resources are its human resources, who include the technology employees that design and develop its solutions, the sales employees who promote them, and the customer service employees that provide support.

Cost Structure

Tyler Technologies has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is cost of revenues, a variable expense.

Other major drivers are in the areas of sales/marketing, research/development, and administration, all fixed costs.

Revenue Streams

Tyler Technologies has four revenue streams:

• Software licenses and royalties
• Subscriptions
• Services (software, maintenance, appraisal)
• Hardware and other