Operations
Developing the operational structure and processes required to support a growing international business.
Case study: Appnovation
Building a managed services business from $0 to $850K MRR
At Appnovation, I helped build a managed services business from $0 to $850,000 in monthly recurring revenue. That took less than two years. The unit became a multi-award-winning operation of 50 people across six countries.
On this page
- The challenge: clients needed ongoing technology support
- Managed services compared with development projects
- Building a managed services business around four areas
- The results: a multi-award-winning international operation
- What the growth demonstrated about building a managed services business
- Using the four areas as questions for a new business unit
- Where this work fits today
- Frequently asked questions
The challenge: clients needed ongoing technology support
Building a managed services business at Appnovation started with a shift in the market. Appnovation operated in a rapidly changing digital technology market. Clients increasingly needed ongoing technology support and managed services, not simply individual development projects.
The opportunity was to establish and scale a managed services business capable of delivering consistent value to clients. That meant building the operational structure, team and commercial foundation required for significant growth.
Managed services compared with development projects
Managed services and development projects differ in how the work is shaped, how revenue arrives and what the business needs.
| Dimension | Development project | Managed services |
|---|---|---|
| Shape of the work | Usually a defined scope with a start and an end | Ongoing responsibility for a client's technology support |
| Revenue pattern | Often fees tied to the agreed scope | Recurring fees, often tracked as monthly recurring revenue (MRR), the predictable revenue from recurring contracts each month |
| What the business needs | Delivery capacity for each project | Usually an operational structure, a team and a commercial foundation that keep serving clients month after month |
Building a managed services business around four areas
I took responsibility for establishing and growing the new managed services business unit. The focus was building the organization around four interconnected areas.
People and leadership
Building and managing a high-performing team distributed across multiple countries. Creating the organizational structure to support continued growth.
Sales support
Working alongside the commercial organization to support business development. Creating a scalable foundation for recurring managed-services revenue.
Business practice leadership
Connecting strategy, people and execution so that the growing business unit could operate effectively as it scaled.
The results: a multi-award-winning international operation
- $0 to $850K monthly recurring revenue (MRR) in less than two years
- 50 people across six countries
- Multi-award-winning international managed services operation
What the growth demonstrated about building a managed services business
The growth demonstrated the ability to take a developing business practice and scale it into a significant recurring-revenue business. Getting there meant establishing the operational infrastructure around the practice and building an international team.
This engagement reflects the type of work I now bring to founders and growth-stage organizations:
- Turning strategy into an executable operating model
- Building and scaling business units
- Developing high-performance teams
- Creating operational structure during periods of rapid growth
- Aligning people, processes and commercial objectives
- Managing distributed international teams
- Supporting recurring-revenue business models
- Leading organizational change through growth
Using the four areas as questions for a new business unit
The four areas from this case study can double as questions for a founder-led company building a new business unit. The answers can change as the unit grows, so the questions may need asking more than once.
- Operations: does the business have the structure and processes to support growth?
- People and leadership: is there a team, and an organizational structure, that can keep growing?
- Sales support: does the commercial team have a scalable foundation for recurring revenue?
- Business practice leadership: who connects strategy, people and execution?
Where this work fits today
I continue this work today as a Fractional Executive, for example through the Fractional COO engagement. In a founder-led company, growth-driven complexity can show up as more and more coming back to the founder. That pattern is covered under the founder as bottleneck.
Execution under a 45-day deadline is the focus of the LED product recovery. The Odoo ERP transformation applies the same focus to an operating model. All three sit together on the case studies page.
My wider background is on the about page. If growth has created complexity in your company, you can start a conversation.
Frequently asked questions
How was the managed services business unit built?
The managed services business unit rested on four interconnected areas: operations, people and leadership, sales support and business practice leadership. I took responsibility for establishing and growing it. The work covered operational structure, an international team, support for the commercial organization and the link between strategy and execution.
What were the results of building the managed services business?
The managed services business reached $850,000 in monthly recurring revenue, growing from $0 in less than two years. It became a multi-award-winning operation of 50 people across six countries.
Why build a managed services business?
In this case study, the managed services business answered a shift in the market. Clients increasingly needed ongoing technology support, not simply individual development projects. The opportunity was to deliver consistent value to clients. That meant building the operational structure, team and commercial foundation for significant growth.
What does MRR mean for a managed services business?
MRR stands for monthly recurring revenue, the predictable revenue a business earns each month from recurring contracts. In this case study, the managed services unit reached $850,000 in MRR from a $0 start. Managed services can suit that measure because the work is ongoing rather than a one-off project.
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