Peachtree 2013 Annual Report Download - page 47

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Growth cornerstones
Our strategy for accelerating growth comprises three cornerstones: Focusing our business; Capturing the technology opportunity; and The benefits
of subscription. Under Focusing our business, we track how much of our investment we have redirected towards products with the highest potential.
Under Capturing the technology opportunity, we monitor the pace of adoption of our key technology products through customer numbers and revenue
growth. Under The benefits of subscription, we track the progress of our move to subscription through the annualised value of revenue we receive from
customers with whom we have a subscription relationship.
Link to
strategy KPI description 2013 2012 Change
1
Research and development (“R&D”) and sales and
marketing (“S&M”) spend by category
Resource optimisation is captured by reporting on the resource
allocation in our business. R&D and S&M spend in the year is
divided into three categories of product – Invest:Harvest:Sunset.
Our strategy is to focus our investment towards the Invest
products in our portfolio.
R&D reallocation
50:43:07
S&M reallocation
49:46:05
35:53:12
42:49:09
15:(10):(5)
7:(3):(4)
2
Adoption of Sage One
The number of paying subscriptions at the end of the year for
Sage One Cashbook, Sage One Accounts, Sage One Payroll
and Sage One Accountant Edition.
22,400 6,190* 16,210
2
Adoption of hybrid cloud
The number of paying subscriptions at the end of the year for
hybrid cloud products.
750 115 635
2
Sage ERP X3 underlying revenue growth
The percentage increase in underlying revenue derived from
Sage ERP X3 in the year compared to the prior year. The
impact of foreign exchange is neutralised in prior year figures.
12% 5% 7%
2
Integration of payments
The number of customers at the end of the year who are using
a Sage core accounting system, a Sage payments solution,
and the integration of the two is provided or owned by Sage.
13,800 9,700 4,100
3
Organic annualised value of the subscriber base
The amount of organic software subscription revenue recorded
in the last month of the year multiplied by 12.
£108m £85m 27%
Customers
Satisfied customers are incredibly important, and measuring how many of them choose to maintain their support, payments or subscription relationship
with us each year is an effective way of determining whether we are meeting their needs.
Contract renewal rate
The number of contracts successfully renewed in the year
as a percentage of those that were due for renewal.
82% 81% 1%
Note:
* The 2012 Annual Report & Accounts disclosed Sage One paying customers of 6,100. This year we are reporting the number of paying subscriptions.
Strategic drivers
The measurement of progress in delivering
our strategy is important and we have developed
a number of KPIs to measure performance.
Turn to the CEO’s review
starting on page 26 to read
about our strategic progress
this year.
45The Sage Group plc | Annual Report & Accounts 2013
Financial statementsGovernanceStrategic report