SaaS Renewal Prediction via Big Data Analysis

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Solution Overview

Problem

Small business accounts lack the computing resources and knowledge to effectively monitor and predict usage of Software-as-a-Service (SaaS) offerings, limiting their ability to make informed decisions when renewing contracts and negotiate better terms.

Innovation Solution

A server system utilizing machine learning models to analyze big data from multiple accounts and software vendors, identifying recurring transactions, generating average contract prices, and providing confidence scores to recommend renewal terms, thereby sending alerts for contract renewals.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional servers and accounts are used to monitor and predict SaaS usage, then the system structure remains simple, but the ability to make informed renewal decisions is insufficient due to lack of computing resources and knowledge

Engineering Contradiction:
Improvedecision-making capabilityVSAvoidsystem complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The patent introduces a server as an intermediary between multiple accounts and the SaaS vendor. This server collects usage data from multiple accounts, processes it using machine learning models, and generates aggregated insights that individual accounts could not produce alone. The server acts as a mediator that transforms raw usage data into actionable renewal recommendations, resolving the contradiction by enhancing decision-making capability without requiring individual accounts to have complex computing resources.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent merges data from multiple accounts to create a collective knowledge base. By combining usage patterns, transaction histories, and service metrics from numerous accounts, the system generates more reliable predictions and insights than any single account could achieve. This merging of resources and data resolves the contradiction by pooling computing capabilities and information to enhance overall decision-making reliability.

Inventive Principle:
Principle #5Merging (Combining)

2Measurement precision

If machine learning models are used to analyze big data and generate predictions, then prediction accuracy improves, but the computing resources required increase significantly

Engineering Contradiction:
Improveprediction accuracyVSAvoidcomputing resource consumption
Core Design Contradiction:
Measurement precisionVSUse of energy by moving object

Solution Approach 1:

The server system performs self-service by automatically collecting usage data, training machine learning models, generating predictions, and providing recommendations without requiring individual accounts to invest in complex computing infrastructure. The system serves itself by leveraging aggregated data from multiple accounts to build predictive capabilities that would be prohibitively expensive for any single account to develop independently.

Inventive Principle:
Principle #25Self-service

Solution Approach 2:

The server provides universal service to multiple accounts, performing data collection, processing, analysis, and recommendation generation for all participating accounts. This multi-functional system resolves the contradiction by distributing computing resource consumption across multiple beneficiaries, making the high resource requirements sustainable through shared usage and aggregated value creation.

Inventive Principle:
Principle #6Universality (Multi-functionality)

3Adaptability or versatility

If accounts lack adequate knowledge base about SaaS offerings, then the system remains simple to operate, but the ability to negotiate better renewal terms is limited

Engineering Contradiction:
Improvenegotiation capabilityVSAvoidknowledge base availability
Core Design Contradiction:
Adaptability or versatilityVSLoss of information

Solution Approach 1:

The system implements feedback loops where usage data is continuously collected, analyzed by machine learning models, and transformed into actionable insights that are fed back to accounts. This feedback mechanism provides accounts with knowledge about their usage patterns, pricing benchmarks, and negotiation leverage points, enabling better renewal decisions without requiring accounts to independently build complex knowledge bases.

Inventive Principle:
Principle #23Feedback

Data Source

PatentUS12045847B2Predictions based on analysis of big data
Publication Date: 2024.07.23 CAPITAL ONE SERVICES LLC
  • US12045847B2 patent drawing
  • US12045847B2 patent drawing
  • US12045847B2 patent drawing

AI summary

Systems as described herein may analyze big data to generate predictions for Software-as-a-Service (SaaS) offerings and/or other subscription-based software. A prediction system may receive small business transaction data comprising payment information between a plurality of merchants and a software vendor. The prediction system may receive enterprise merchant insights information. The prediction system may identify, based on the small business transaction data and the enterprise merchant insights information, recurring transactions using a first machine learning model. The prediction system may generate an average contract price and a confidence score, using a second machine learning model. The prediction system may generate a recommendation comprising a renewal rate. Based on a determination that a service provided by the software vendor is coming due for renewal, the prediction system may send, to a particular merchant, an alert associated with the renewal and the recommendation.