Tracking and Fulfillment of Licenses and SERVICES

License fulfillment is at the SO level vs. the Project; however will be associated at times with a scheduled workshop. Review the contract terms on how a license is consumed (i.e. at the Accelerate™ or SPI-1 upon launch, upon participation in the workshop, upon registration in the workshop, upon registration for the workshop, etc.).  Workshops will need to fulfilled for every session, which will be upon completion of each session. Once fulfilled, the workshop will be invoiced to the customer.  Services will need to be fulfilled upon completion of each for invoicing.

 

Types of Licenses

There are four standard types of licenses:

1. Committed Licenses
2. Pay as you Go Licenses
3. Named User Licenses
4. Subscription Licenses

Committed License.

An IP license that a customer purchases and is committed to the full value and quantity of licenses during the term. Licenses are typically time bound to the License Term identified in the SOW. Once a participant accesses that IP license they can use it perpetually as long as they are licensed employee of that company (save and except for any platform access, which requires ongoing access fees). A committed license term cannot be extended beyond the initial term in a SOW, so it is important to manage consumption with the customer so they have received the full value of the initial commitment.  Commitments are typically invoiced in full upon execution or with an installment plan approved by the CFO.

 

License Tracking of Committed Licenses is typically based on the following, but please consult the SOW as there may be some negotiated terms or consult with Contracts as needed:

1. If a group/bundled license of:  Accelerate™, workshop, and QuickCheck license it is based upon the initial Accelerate launch of each user.
2. If a group/bundled license of:  workshop + QuickCheck  it is based upon the number of participants registered for the VILT session.
3. If workshop only: it is based upon the number of participants registered for the VILT.
4. If SPI-1: it is based on the number of users launched within SPI-1.

Pay as You Go License.

Pay as you go licensing is extended for customers who need the flexibility to pay as you consumed.  All SO’s will require the sales team to put estimates of the total number of licenses and workshops they believe the customer is intended to do. Pay as you go licenses are invoiced upon fulfillment based on actuals and should be associated with the workshop (unless otherwise indicated by the client).

 

Named User License.

Named user licensing is more limited and with customers such as United Airlines, Farm Credit, Equifax, Yancey Brothers, etc. This license is typically when it allows a customer access to multiple programs within one license and those programs may flex from one user to the next. As an example, United Airlines purchases 500 named user licenses, and each named user can access up to 4 programs of the 10 programs outlined in the contract. Named user models typically allow for 10% transferability in each subsequent year.  There is a custom application within NetSuite to help track named user to avoid double counting across multiple programs that will be outlined in this fulfillment section. See video tutorial here.

Fulfillment of a Committed License

If the payment schedule states the IP is billed 100% upfront or in installments, the PM will track consumption of the licenses at each program/IP level. Typically clients will consume bundled/group licenses as follows:

1. Mass launch of users within a platform (Accelerate™ or SPI-1) without knowing which workshops each participant is assigned to.
   1. Use Case: Redfin asks us to launch 100 users in their bundled/group license in Accelerate™ while they plan to schedule the rollout. The PM would go to the SO then click Fulfill.
      1. Tick the Fulfill box on the right hand side for the Items you are tracking.
      2. In quantity update 100 for all parts of the bundle/group.
      3. Update status to Completed
      4. Note: Since we do not have details about which workshops this launch relates to, you do not need to link it with an Associated Project.
      5. Click Save.

2. Launch of cohorts assigned to a workshop.
   1. Use Case: Redfin tells PM they anticipate 10 participants to attend an upcoming VILT. The PM launches the 10 users in advance to the workshop.
      1. Tick the Fulfill box on the right hand side for the Items you are tracking.
      2. Tick the Fulfill box for the Workshop.
      3. In quantity update 10 for all parts of the bundle/group.
      4. Update status to Scheduled (if you move to Complete, this will invoice the customer for the Workshop date that did not happen yet)
      5. Assign the Associated Project of the VILT to each line
      6. Click Save.
      7. If Redfin adds 2 additional users, you can go back into the Item Fulfillment and update the  quantity from 10 to 12 for the licensed items.
      8. Following completion of the workshop, the PM will update the Status from Scheduled to Completed, which will then invoice the Workshop.

 

Fulfillment of Pay as You Go Licenses

 

For customers who contract under a pay as you go model, the tracking of the licenses must be linked to the workshop, if the customer is expecting to have it consolidated on an invoice.  If something is not bundled, fulfill based on actuals – note timing of when invoice needs to be created and when it is packaged.

1. Tracking Pay as You Go licenses with workshops.
   1. Use Case: Sigura has an SPI-1 license and a separate workshop license. The workshop license is invoiced based on actual number of attendees in the workshop that attend and the SPI-1 is based on those launched in the SP1-1 platform. Sigura provides the PM with a roster of 15 participants to be launched in SPI-1 and upon completion of the 2 day workshop, the PM receives the roster of 12 attendees. There are two options to manage this
      1. Leveraging the Scheduled status pre-session and update post workshop completion when roster is received.  
         1. Tick the Fulfill box on the right hand side for the Items you are tracking.
            1. Update SP-1 Platform Item to 15 – assign to the upcoming workshop under Associated Projects
            2. Update 2.0 Day Solution Selling License to 15 – assign to the upcoming workshop under Associated Projects
         2. Tick the Fulfill box for the Workshop that is linked to the Associated Projects
         3. Update status to Scheduled
         4. Click Save

1. 1. 1. 5. Once the Workshop completes, the PM receives the roster and only 12 attended. The PM will go back into the Item Fulfillment record and update the 2.0 Day Solution Selling License from 15 to 12 to align with the roster.
         6. Update status to Completed
         7. Click Save – this will now invoice the customer for 15 SPI-1 licenses, 12 IP licenses, and 1 workshop on 1 invoice.

1. 1. 2. By passing the Scheduled status and updating only at Completed. This will need to have post-session and the PM will need to update the actual number of users launched in SPI-1 and update the IP licenses based on total number of attendees when the roster is received.
         1. Tick the Fulfill box on the right hand side for the Items you are tracking.
         2. Tick and update SP-1 Platform Item to 15 – assign to the upcoming workshop under Associated Projects
         3. Tick and update 2.0 Day Solution Selling License to 12 – assign to the upcoming workshop under Associated Projects
         4. Tick the Fulfill box for the Workshop that is linked to the Associated Projects
         5. Update status to Completed
         6. Click Save.

 

Fulfillment of a Standalone Services

For any standalone Services that may not be invoiced along with a Workshop and/or licensing, you would follow the same process as below. Note the end to end design management process is above for managing the actual project before fulfillment.

1. Fulfilling a Service (i.e. CRM alignment, Customization of workshop materials)
   1. As a use case: Sigura has completed the Sales Tools Tailoring Services in the month of December. We do not have an upcoming workshop scheduled yet, but we want to complete the project and invoice the customer in advance.

1. Tick the Fulfill box on the right hand side for the Items you are tracking.
2. In quantity update to 1
3. Update status to Completed
4. Click Save.