Subscription business models are gaining momentum in Germany, particularly across Industry 4.0 as manufacturers make the shift from offering traditional products to valuable, recurring services. However, companies across all industries are realizing the importance of a new architecture featuring a third cloud, a subscription management platform. A two-cloud architecture is not enough in today’s Subscription Economy.
Below are excerpts from the latest stories in Germany.
Where are the new Industry 4.0 business models? (Industry of Things) by Michael Mansard, Principal Business Transformation & Innovation, Zuora and Jean-Michel Cagin, Senior Partner, Roland Berger.
The establishment of new business models can often be seen as an opportunity in the context of Industry 4.0. The biggest opportunity in this context is a shift away from one-off business towards more customer loyalty and so-called recurring models. In short, it is necessary to revise the old models and generate new sales. Many areas have been dramatically transforming for several years. The subscription economy subsumes all business models where monetization takes place via digital add-on services, flexible subscription models or pay-per-use. In addition to new revenue opportunities, this also offers other advantages: The providers of such models can analyze the use of their products by the user much more accurate and adapt so exactly to the customer needs. This makes true customer orientation possible, which until now has often been just wishful thinking. Software-as-a-service and media providers like Microsoft and Netflix make it.
Why Subscription Business Models Need SaaS (Computerwoche) by Michael Mansard, Principal Business Transformation & Innovation, Zuora and Jean-Michel Cagin, Senior Partner, Roland Berger.
Cloud solutions, artificial intelligence, blockchain, the constant availability of the mobile Internet and the Internet of Things ( Internet of Things, IoT ) are the main technological “enablers” that revolutionize many business models currently fundamentally. In the Subscription Economy, monetization takes place via digital add-on services, flexible subscription or pay-per-use models. Thus, in addition to new sales opportunities also other benefits: The suppliers of such models can analyze the use of their products by the user much more accurate and adapt so exactly to the customer needs. Customer orientation has probably spelled out almost every company in the past on the flags. But with the new possibilities, these can actually be implemented for the first time.
Where are the new business models? (Computer-Automation.de) by Michael Mansard, Principal Business Transformation & Innovation, Zuora and Jean-Michel Cagin, Senior Partner, Roland Berger.
Schneider Electric, one of the world leaders in energy management and industrial automation, has already converted numerous offerings to flexible usage models. The company aims to drive forward the digital reorientation of energy management and automation technology and ensure that IoT-enabled solutions can be seamlessly networked to capture and analyze data in real time. For example, with its EcoStruxure Facility Advisor, Schneider Electric helps building owners or operators improve the energy efficiency of small to medium-sized buildings, ensure smooth operation and optimize operating and maintenance costs. The Advisor is one of numerous EcoStruxure platform solutions available in 480. 000 properties are used worldwide and connected to more than 1.6 million devices. Over 20,000 partners and system integrators support customers with this platform.
The Third Cloud (Sapport) by Philippe van Hove, VP Continental EMEA, Zuora
A two-cloud architecture is not enough. Due to the dynamics of subscriptions, companies in the subscription economy must pursue a three-cloud architecture strategy. A CRM/eCommerce solution for the acquisition channel, ERP for the general ledger and in the middle an end-to-end subscription management solution. This solution is responsible for all order-to-revenue transactions and enables companies to evaluate, bill, collect, measure, acquire and maintain their subscribers. When subscriptions are added or changed, all transactions are recorded in one system. As the market strategy evolves, all effects on incoming orders are aggregated in this system.