The journey to Subscription and Consumption based models

Manufacturers are adding Software-As-A-Service to their existing products and parts, are going for an Everything-As-A-Service model and are going to a Solution-Bundle model.

New pricing mechanisms are required for subscription and consumption models.

Customer relationships are based on contracts, no more orders, very likely to change over their lifetime with add-ons, removals, co-terming, or specific entitlements.

 Collection, metering, and pricing of large amounts of transactions and events is needed to charge based on usage.

 The easy integration between front office (sales and quoting tools) and back-office (ordering, invoicing and collection).

Scaling capabilities to “Start Small,

but Think Big” their subscription and consumption models adoption


Digital Transformation Drivers

of Subscription and Consumption based models

Efficiency due to low- touch to zero-touch Quote-2-Cash process will enable exception-based handling and the increase of revenue growth and harmonized customer experience.

Effectiveness personalizing the offering based on Digital Data sources and Advance Predictive algorithms that will help to increase customer satisfaction.

Agility to respond faster to the deployment of new business models, Joint Ventures (JVs) and Alliances.

Loyalty of customer base beyond the business model: perpetuity, subscription or consumption-based services.