Sector: Software Development for Government and Public Administration
Company Size: 600 Employees
Project Duration: January 2022 - Present (6 months of preliminary work, 6 months to develop a new accounts receivable module, 1 year of business development)
Challenge
A few years ago Cipal Schaubroeck, market leader in accounting and payroll software for government and public bodies, noticed that new market entrants, especially startups, were offering specific modules that replicated key functions of Cipal Schaubroeck’s software package. This challenge put Cipal’s market position under pressure. The company had to make a strategic decision: collaborate with these startups, expand its own software, or acquire other technologies through mergers and acquisitions.
Start it X Journey
Here are the key points of the collaboration between Cipal Schaubroeck and Start it X:
Entrepreneur in residence: Through the Start it X network of over 2,500 entrepreneurs, a collaboration was formed with Davy De Witte. Davy, a seasoned entrepreneur who co-founded a startup in accounting software, led a comprehensive market and customer needs analysis for Cipal Schaubroeck.
Market analysis: The team surveyed 25 public administrations extensively to understand their specific needs and evaluated competitors and potential partners.
Development advice: Based on this research, Davy compiled a shortlist of five potential partners. Cipal Schaubroeck was advised to develop its own advanced accounts receivable module tailored to the unique requirements of public administrations, which include the ability to process taxes and fines, and require integration with the national registry and debt management.
Risk and sustainability: The requested functionalities did not fit into a standard package, and there were concerns about the sustainability of the solution: what if a startup went bankrupt, was acquired by a player with a different strategy, or no longer maintained specific modules?
The IT team at Cipal Schaubroeck estimated that building the software in-house would take about two years. However, the involvement of Start it X significantly accelerated this process by facilitating the acquisition of a startup with a working prototype.
Key Results
The launch of the module significantly boosted revenue growth, customer satisfaction, and improved Cipal Schaubroeck’s overall market positioning.
Within one year of the launch, 15% of the target customers had subscribed; this number is expected to increase to 25% by the end of 2024.
An additional revenue of 3 million euros is projected over five years, with the break-even point reached within two years.
The new modular approach has led to greater customer satisfaction, making the software more user-friendly and easier for new employees to learn.