Business model

Creactives has a flexible business model based on “SaaS, – Software as a Service”, which provides efficient earning visibility with a recurring revenue stream.

A project setup is necessary in order to provide the Service.

project Setup with Customers 

Creactives comprehends over 30 languages as well as a huge number of concepts and words, nevertheless, during project setup, Creactives’ AI learns from the customer’s examples to build the best Deep Neural Network and adapt the Semantic Knowledge Base.

Depending on the use case, number of languages, number of taxonomies, and number of items, project setup can last anywhere from less than one day to a few weeks.

SaaS

Once the project is set up, the system is installed and can go live.

The SaaS service fee is dependent on the number of languages and items, and includes a “full service” which is comprised of: software, maintenance, updates, special services, and hosting.

The standard SaaS contract has a duration of 3 years.

The project range depends on the use case:

  • a project of Inventory Optimization (Material Master Data) could span from 50.000 to 5 million items, consisting of 10 languages.
  • a project of Procurement Optimization (Spend Categorization) could span from 500.000 to 20.000.000 purchase order and invoice rows, consisting of 2 to 30 languages per year.
  • a project of Categorization Assistant could span from 40.000 to 500.000 suggestions, consisting of 4 to 20 languages per year.

TCV: total contract value

The Total Contract Value is the total amount of the project setup plus the 3 year SaaS fee, which could change accordingly from 50.000 € to 1.000.000 € or more, depending on the circumstances.

The SaaS renewal is automatic: we have a very low churn rate.

Sales and delivery model

The sales cycle depends on the use case, the dimension of the customer, the dimension of the project, and the organization deal (RFI, RFQ, Pilot, direct negotiation, partnership support).

The average duration is between 6 months (Categorization Assistant) and 1 year (Inventory Optimization).