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Why AI in B2B SaaS is not a promising business model

08/23/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

In recent years, artificial intelligence (AI) has revolutionized the business world and transformed numerous industries. Especially in the software-as-a-service (SaaS) space, AI has attracted a lot of attention. However, despite the enthusiastic coverage of the potential benefits of AI in the B2B SaaS model, there are some fundamental challenges and concerns that make this business model less promising. In this article, we'll take a closer look at these critical issues.

Complex implementation and integration:

Integrating AI into a B2B SaaS product is a complex task. Most AI models require extensive amounts of data to deliver reliable results. Companies that cannot adequately leverage their own data or access relevant datasets encounter difficulties in implementing AI in their existing SaaS products. This results in high costs for data collection, cleansing, and integration.

High development costs and expertise:

Developing a powerful AI algorithm requires specialized knowledge and talented data scientists. However, finding such expertise is challenging and expensive. The cost of developing, implementing, and ongoing maintenance of AI in B2B SaaS can quickly go beyond budget and become prohibitive for many organizations.

Lack of transparency and explainability:

Another critical factor is the lack of transparency and explainability of AI decisions. In B2B environments, where complex decision-making processes and liability issues play an important role, it is essential that AI models can make their decisions understandable and comprehensible. However, most deep learning models are so-called "black boxes," meaning that it is difficult to understand their decision-making rationale, which can reduce user confidence in the product.

Data quality and ethics:

AI models are only as good as the data on which they are based. If the data used to train the algorithm is of poor quality or contains biases and prejudices, the AI results may be unreliable and inaccurate. This can cause serious problems for companies relying on AI-driven processes and even raise ethical concerns.

Market saturation and competition:

The B2B SaaS market is highly competitive, and many companies already offer established and successful SaaS solutions without AI. It can be difficult to gain a foothold in such a market and convince customers of the need for an AI-based solution. It takes extensive persuasion and investment in marketing and sales to prevail over already established competition.

Conclusion:

While AI undoubtedly offers tremendous opportunities and can be successful in some specific use cases, the challenges and concerns in the B2B SaaS model are not negligible. Complex implementation and integration, high costs and expertise, lack of transparency, ethical considerations, and the competitive market make AI in B2B SaaS a less promising business model. Companies should therefore carefully consider whether and how AI can be meaningfully integrated into their SaaS solutions before embarking on this venture.

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What are no-go's in sales?

08/08/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

No-go's in sales are behaviors or practices that should be avoided because they can have a negative impact on the sales process and customer relationships. Here are some examples of no-go's in sales:

Aggressive Selling: Pressuring or aggressively persuading customers to buy a product or service can lead to negative reactions and damage customer trust:

Aggressive selling can lead to negative reactions and damage customer trust.

Unprofessional appearance: An ill-prepared, unprofessional demeanor can give the impression that you don't care about the customer's needs. This includes inappropriate language, poor choice of dress, or lack of knowledge about one's product or service.

Unprofessional appearance.

Inadequate product knowledge: Customers expect salespeople to have extensive knowledge about the products or services they offer. If sales staff cannot provide sufficient information or make false statements, this creates uncertainty and can lead to rejection.

Inadequate knowledge of the product or service offered.

Unreliability: Failure to meet commitments or deadlines, late deliveries or lack of communication with customers are no-go's in sales. Reliability is an important factor in building trust and long-term customer relationships.

Missing customer focus: a sales representative should be responsive to the customer's needs and requirements and provide customized solutions. If the focus is only on selling and there is no real customer focus, this will frustrate the customer and lead to rejection.

Poor communication: clear and effective communication is critical in sales. If a salesperson has difficulty articulating their thoughts clearly, listens poorly, or does not adequately address a customer's questions or concerns, it can lead to misunderstandings and affect trust.

These are the no-go's.

These no-go's should be avoided in order to succeed in sales and build good customer relationships. Instead, salespeople should focus on professionalism, customer orientation, reliability and clear communication.

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What do I need to consider before starting a business?

07/10/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

1. Check the market opportunities and do research on your target group.

2. Familiarize yourself with the legal framework of your start-up.

3. Draw up a realistic business plan.

4. Check the financing potential.

5. Inform yourself about legal regulations, taxes and insurances.

6. Determine your personal time and cost requirements.

7. Take advantage of the consulting and support services for founders.

8. Look for suitable employees.

9. Develop an efficient marketing and sales concept.

10. Plan a continuous development of your company.

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What are the founding steps?

06/29/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

There are various founding steps that are important when founding a company. Here are the key steps:

Develop a business idea: The first step in founding a company is to develop a business idea. The idea should be based on market analysis and be unique.

Create a business plan: The next step is to create a business plan. The business plan includes a description of the business idea, a market analysis, financial planning and a description of the organizational structure.

Choose legal form: An important decision when starting a company is the choice of legal form. There are various options such as sole proprietorship, GmbH or AG.

Secure financing: Starting a business usually requires financing. There are various financing options such as equity, debt or subsidies.

Registration with the trade office: Before founding, the company must be registered with the trade office. The tax identification number and the sales tax ID are also requested here.

Building a business: After registering with the trade office, the company can be set up. Here you have to rent, hire employees and find suppliers.

Marketing and sales: Once the business is built, marketing and sales activities must be started to attract customers.

Controlling: Controlling is necessary to monitor the success of the company. Key figures such as turnover and profit are monitored here and appropriate measures are taken to keep the company on track.

The exact steps may vary by industry and legal entity, but these are the basic steps when starting a business.

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What does everyday sales life look like?

05/15/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Daily sales work can vary depending on the industry, company and position, but generally includes the following tasks:

Customer acquisition:

Sales representatives seek out potential customers and try to win them over for the company.

Customer care: sales representatives maintain existing customer relationships to ensure that customers are satisfied and their needs are met.

Sales calls: sales representatives conduct sales calls with potential customers to convince them of the benefits of the product or service.

Quotation preparation: sales representatives prepare quotations for potential customers and work closely with the sales team to ensure that the quotations meet the customers' needs.

Contract Negotiation: Sales representatives negotiate contracts with customers and ensure that all contract terms are acceptable to both parties.

Sales representatives negotiate contracts with customers and ensure that all contract terms are acceptable to both parties.

Reporting: sales representatives prepare regular reports on their activities and results to provide the company with an overview of sales progress.

Training: Salespeople regularly attend training sessions to keep their knowledge of the company, its products and services, and sales techniques up to date.

Overall, salespeople are required to provide the company with an overview of sales progress.

Overall, day-to-day sales requires a mix of customer orientation, negotiation skills, assertiveness and the ability to deal with pressure and uncertainty.

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