GRO invested in Tacton in 2017, with the aim of supporting the vision of a digital transformation of complex manufacturers’ selling processes, as well as the ambition to scale Tacton globally.
A first strategic priority after completion of the transaction was to turn focus away from a license-based offering with customizations to a new feature-rich SaaS-based solution. The multi-tenant cloud platform was first launched in 2016. This fundamental change of focus required significant change in many functional areas and investments in many of Tacton’s business processes. This included processes within R&D and Product Management, the skillsets within Services, and establishing a Customer Success department, as well as the introduction of a business value focused go-to-market approach.
Gartner has recognized Tacton as a Leader in the 2022 Gartner® Magic Quadrant™ for Configure, Price and Quote Application Suites.
Over a relatively short period of time, Tacton has transitioned from a customized CPQ provider with an unclear go-to-market approach to the industry thought-leader serving customers through a mature multi-tenant cloud platform. This very complex journey was facilitated by several key hirings made to strengthen Tacton’s senior management team, including the appointment of Bo Gyldenvang as CEO and Klaus Andersen as Chairman of the Board. Other critical hirings in this journey include a new CRO, CFO, CMO, CPO and the senior executives leading the sales organizations in the US and EMEA.
CPQ software is a business-critical enabler to modern-day discrete manufacturers, which usually connects to other software infrastructure such as ERP, CRM and PLM. This often leads to a long and complex sales process with many stakeholders. GRO has been working with Tacton to capture value by shortening the sales cycle and implementation phase, so customers reach the full value of Tacton faster. Through this work, Tacton has achieved a very detailed understanding of its land-and-expand business model, which impacts almost all strategic initiatives today.
A third strategic priority in the GRO investment thesis was to fuel the global expansion of Tacton with an entry into the US market. This initiative required setting up a Tacton US HQ in Chicago, as well as significant investments into most local business functions, including marketing, sales, sales engineering, and services. Today, Tacton has approximately 50 employees on the ground serving the US market and takes a lot of pride in an impressive list of blue-chip logos. US revenues are already on par with revenues in the Nordics and DACH.
Tacton’s constraint-based approach to configuration is unique in the market for CPQ software, but the GRO due diligence at entry showed that it was not widely understood by the market. Since then, a lot of resources have been deployed to market the uniqueness of Tacton and hence position the company as solving a critical challenge for manufacturers of complex product
Coupled with continued investments into the product roadmap, Tacton is today viewed by experts as an industry thought-leader. This is recognized by Gartner, which positioned Tacton as a Leader in the 2022 Gartner® Magic Quadrant™ for CPQ software. Click here to access the full report.
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