Licensed content accounts for significant revenue for many companies, yet there are five no-nos when it comes to royalty management. Link to our slideshare, or view the slides below to find out the Top 5 Royalty Management Mistakes–and their solutions.
1. Ignoring the costs of poor royalty management
Implementing a royalty management system requires an upfront investment.
Too often, companies fail to weigh the cost of a new system against the dangers of overpaying or underpaying royalties, or the risks of litigation over royalty disputes.
Assessment of the litigation and reputational risks of existing royalty management practices.
Clear cost-benefit analysis of poor royalty management.
2. Lack of management buy-in
Adopting a new royalty management system is about human capital as much as software. Without proper support, poor implementation will create additional costs and delays, and damage employee confidence in the new system.
Buy-in at the executive level and visible support for implementing a new system.
A team dedicated to resolving issues with the new system as they arise.
3. Dependence on custom software
Custom software has some critical disadvantages. Maintenance costs are more and it requires greater IT support; more external support is required for updates, and maintenance costs more and requires greater IT support.
A royalty management system with a configurable, modular structure that offers built-in flexibility.
4. Too much ownership on IT
When too many high-level functions of the royalty management system require the intervention of IT to implement, the result is bottlenecks, frustrations, and delays.
Put high-level control into the hands of business users.
Have a simple, intuitive interface that make customization easy.
Give business users the ability to modify fields, calculations, definitions and drop down lists.
5. Lack of phased implementation
Software implementation is never a once-and-done job. Imposing a new system on all employees, without time to get early adopters excited, take feedback, or iron out early issues, guarantees trouble.
Phased implementation, with time for reflection, training, feedback, and internal marketing, instills confidence in both the software and the process, and makes employees feel included in the project.
Early training should focus on employees who are likely to become internal advocates for the new system.
To speak to one of FADEL’s experts on implementing a royalty management system, get in touch with us. You can also learn more about IPM Suite, our royalty management system, by reading our Fact Sheet.