Complete Your ERP System With Good Sign Billing Automation
With years of experience with different ERP systems, I still find that they are excellent for many tasks but not for subscriptions and recurring...
2 min read
Taija Engman
:
Jan 25, 2018 7:22:00 AM
Read almost any survey or research paper touching business models: service transformation is clearly visible.
There may be several terms used when discussing growth of services and new service business models, for example:
No matter the terms used, the growing trend towards selling and procuring as-a-service is clear.
Below are two examples: a survey by CFO Research and a study by Forrester.
A survey conducted by CFO Research in Q1 2017 aimed to evaluate the impact that the economy’s shift to a subscriptions and services focus has on CFOs:
The report summary states that “CFOs who recognize the significance of the change in business focus can in fact drive more revenue from services, such as professional services, subscription-based services, software/apps delivered as a service, managed services and usage-based contracts.”
According to Forrester´s Q3 2017 published “Recurring Customer and Billing Management” report service transformation is ongoing in most industries and 29 percentage of organisations are aiming to introduce recurrent revenue-based business models in the next 12 months.
Forrester research states that the biggest business and technology trends drive recurring customer relationships: “The age of the customer is pushing companies of all sizes and across all industries to adopt more recurring relationships with their customers. Subscriptions aren’t for every company — but recurring relationships are.”
“Business models now include hybrid models that combine one-time transactions, subscriptions, and usage/consumption rating.”
The mentioned CFO study concluded that only 17% of CFO’s believe they have the proper operational and technological infrastructure in place to cope with an increase in service-related revenues.
Forrester’s research findings suggest that 40 percentage of companies planning to launch new business models see also a need for new technology to enable those models.
Further, Forrester concludes that also the focus in supporting software has shifted away from traditional subscription billing software towards supporting companies to design, launch, and manage any business model.
This is why modern software like Good Sign's Billing and Monetization Software has been created: to digitalize any service business model offering recurring revenue end-to-end digitalization capabilities.
With years of experience with different ERP systems, I still find that they are excellent for many tasks but not for subscriptions and recurring...
Without proper tools, revenue recognition is time-consuming and error-prone, especially for SaaS businesses, due to the nature of subscription-based...
Businesses of continuous services (XaaS - anything as a service) in 2023 will focus on the growing trend towards introducing new services that...