Gearing Up for New Revenue Models
New revenue models are emerging as advances in social media, mobile devices, artificial intelligence, robotics, big data, and the Internet of Things (IoT) continue to disrupt whole industries. Companies in every industry are transitioning to or adding subscription or usage-based models, also known as recurring-business models. These new business models require an ongoing relationship so businesses must focus on driving customer adoption and value, aligning the success of the customer with that of the business.
The benefits of recurring models drives smoother and more predictable revenues, along with significantly higher valuations from investors. Leading Chief Financial Officers are taking the lead on adapting their companies to the new business models, and with that responsibility they must avoid the potential pitfalls in the transition. To succeed with subscription/ recurring revenue models, companies need to adapt their company cultures and technology.
Key Points in this eBook:
- Companies of every size and in every industry want to build recurring relationships with their customers through new business models.
- Recurring-business models, such as subscription or usage-based businesses, offer more and new revenue opportunities.
- Recurring revenue models generate more predictable, smoother revenue streams.
- Companies with recurring revenue models need to adapt their people, processes and technology.
- Company culture changes as a result of new business models are typically led by the CFO.
- With the new business models, companies should consider evaluating their existing quote-to-cash technology and determine how they can support recurring-business models.
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