Digital Solutions Economy

Membership-based business models are increasingly taking hold in all kinds of industries. Even in economically difficult times, they provide stable and reliable revenue streams. Initially this meant a move towards subscriptions but with the Digital Solutions Economy, it includes consumption-based , outcome based or similar models that are proving lucrative for companies.

According to Gartner, by 2023, 75% of organizations selling direct to consumers will offer subscription services. And we see that this trend is definitively not restricted to B2C model, while the lines between B2B and B2C are blurring.

Average Subscription Billing
Software Revenue
Business Leaders
Monetizing Products

Digital Solutions Economy

Membership-based business models are increasingly taking hold in all kinds of industries. Even in economically difficult times, they provide stable and reliable revenue streams. Initially this meant a move towards subscriptions but with the Digital Solutions Economy, it includes consumption-based , outcome based or similar models that are proving lucrative for companies.

According to Gartner, by 2023, 75% of organizations selling direct to consumers will offer subscription services. And we see that this trend is definitively not restricted to B2C model, while the lines between B2B and B2C are blurring.

Digital Subscription Economy Solutions Mobile

Potential Benefits of the subscription economy:

Deeper engagement with the customers

Deeper engagement with the customers

Higher retention rates

Higher retention
rates

Enhanced opportunities for up-selling and cross-selling

Enhanced opportunities
for up-selling and
cross-selling

Increased brand loyalty

Increased brand loyalty

Higher revenue streams with more predictability

Higher revenue streams with more predictability

Deeper engagement with the customers

Deeper engagement with the customers

Higher retention rates

Higher retention
rates

Enhanced opportunities for up-selling and cross-selling

Enhanced opportunities
for up-selling and
cross-selling

Increased brand loyalty

Increased brand loyalty

Higher revenue streams with more predictability

Higher revenue streams with more predictability

Key considerations for subscription billing and revenue management

Membership-based business models are increasingly taking hold in all kinds of industries. Even in economically difficult times, they provide stable and reliable revenue streams. A transformation towards subscriptions and consumption-based offerings is lucrative for most companies – if done right. The 6 Things You Need to Consider:

Traditional unit-based pricing methods with surcharges and discounts don’t work anymore. It’s necessary to rethink pricing strategies and associated processes.

New services need to be scalable. In subscription-based models, starting small and going big is the norm, not the exception.

Flexible contracts replace fixed orders. During the customer lifecycle, they are likely to change, with additional services being added and removed or specific entitlements granted.

A reliable, always up to date view on the actual product and service usage is key. This requires collecting, measuring, and processing of large amounts of transactional data.

It’s essential to establish an end-to-end process including web shops, quoting tools, invoicing, collection, revenue recognition, fraud management, analytics, etc.

More than before, companies will need to work with partners to provide the services their customers demand. This requires a partner settlement with a range of contract agreements (e.g. revenue share).

Key considerations for subscription billing and revenue management

Membership-based business models are increasingly taking hold in all kinds of industries. Even in economically difficult times, they provide stable and reliable revenue streams. A transformation towards subscriptions and consumption-based offerings is lucrative for most companies – if done right. The 6 Things You Need to Consider:

Traditional unit-based pricing methods with surcharges and discounts don’t work anymore. It’s necessary to rethink pricing strategies and associated processes.

New services need to be scalable. In subscription-based models, starting small and going big is the norm, not the exception.

Flexible contracts replace fixed orders. During the customer lifecycle, they are likely to change, with additional services being added and removed or specific entitlements granted.

A reliable, always up to date view on the actual product and service usage is key. This requires collecting, measuring, and processing of large amounts of transactional data.

It’s essential to establish an end-to-end process including web shops, quoting tools, invoicing, collection, revenue recognition, fraud management, analytics, etc.

More than before, companies will need to work with partners to provide the services their customers demand. This requires a partner settlement with a range of contract agreements (e.g. revenue share).

Start your Journey to the Digital Solutions Economy with the
Right Partner and Guide – Bramasol

Whether you are moving to a subscription business model or other outcome based model, you need an Enterprise Platform and Partner who can guide you with the experience, expertise and vision to guide you. We bring together elements of the SAP Intelligent Enterprise to give you foundation or vision for transforming your company to meet the needs of your customers. And whether you want to do it all at once or one step at a time we can help.

Start your Journey to the Digital Solutions Economy with the Right Partner and Guide – Bramasol

Whether you are moving to a subscription business model or other outcome based model, you need an Enterprise Platform and Partner who can guide you with the experience, expertise and vision to guide you. We bring together elements of the SAP Intelligent Enterprise to give you foundation or vision for transforming your company to meet the needs of your customers. And whether you want to do it all at once or one step at a time we can help.

End-to-End Model for our Solutions Economy customers

End-to-End-Model.png
1
  • Omni Channel

  • Customer Engagement on

    their time

  • Automation of Order Capture

    & Fulfillment

2
  • Dynamic Bundling

  • Flexible Offers built on the fly

    by the Customer

  • Complex Order Management

3
  • When I need it

  • Where I need it

  • How I need it

  • Digital supply Chain

4
  • Show me all my transactions

  • Group my Invoices

  • Dynamic Billing by Usage

5
  • Flexible Credit Terms

  • Flexible Payment Options

  • Secure Transactions

  • Monthly/Quarterly/Annual

    Payments

6
  • Multi-Element Arrangements

  • Put the Revenue

    Where it needs to be

End-to-End Model for our Solutions Economy customers

End-to-End-Model.png
1
  • Omni Channel

  • Customer Engagement on

    their time

  • Automation of Order Capture

    & Fulfillment

2
  • Dynamic Bundling

  • Flexible Offers built on the fly

    by the Customer

  • Complex Order Management

3
  • When I need it

  • Where I need it

  • How I need it

  • Digital supply Chain

4
  • Show me all my transactions

  • Group my Invoices

  • Dynamic Billing by Usage

5
  • Flexible Credit Terms

  • Flexible Payment Options

  • Secure Transactions

  • Monthly/Quarterly/Annual

    Payments

6
  • Multi-Element Arrangements

  • Put the Revenue

    Where it needs to be

With Bramasol Solution Economy

With nearly two and a half decades of experience in the financial workings of global enterprises, Bramasol helps build agile Digital Subscription Economy solutions coupled with Automated Revenue Management & a AI-powered core, from the ground up to both comply with the mandated 5-step accounting process and mesh seamlessly with SAP S/4HANA – Intelligent Enterprise, SAP Applications and Non-SAP 3rd party Applications.

As experts in the Solution Economy, we bring a unique perspective across the entire Order to Cash process. We have a team of deep experts who can help you take advantage of the SAP BRIM portfolio while ensuring critical linkages to your Revenue Accounting, Treasury, Finance and Supply Chain processes. Unrivalled Experience and Expertise – (Revenue Accounting & BRIM)

Bramasol Solution Economy
Bramasol Solution Economy mobile
Bramasol Solution Economy
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