Reimagine and transform your business with Subscription Commerce

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nternet of Things (IoT) is not only generating big data and insights but also enabling smart devices to place orders based on context,

preferences, or predefined rules. Product manufacturers who are reimagining their businesses as ‘service providers’ are exploiting the power of IoT, big data, and cognitive analytics. Businesses across industry verticals are therefore pursuing Subscription Commerce to offer fast moving goods under subscriptions and capital goods or equipment on lease, increasing service revenue and providing an innovative customer experience.

Enterprises have progressed a lot in providing personalized digital commerce to their customers – intuitive discovery of products, upsell/cross-sell during checkout, and customer-friendly order fulfillment are all prevailing capabilities today. This plain-vanilla digital commerce is giving way to the next generation Subscription Commerce for a few reasons: customers are willing to pay more for outcomes than for products; connected devices are generating a lot of intelligent data on customer preferences; digital disruptors are offering innovative services instead of products; enterprises are trying to establish lifelong relationships and maximize revenue per customer. Subscription Commerce is redefining personalized digital commerce experience. It is focused on delivering satisfactory outcomes and not just selling à la carte products. Subscription Commerce is bringing together various proven digital commerce capabilities such as configure, price, and quote (CPQ), IoT data from connected devices, cognitive analytics, cloud computing, and mobility to transform several enterprises.

Aviation industry offers a perspectiveCompanies that are exploring Subscription Commerce need to observe the aviation industry, a pioneer in business and technology innovations. Aircraft manufacturers have been leasing their products to airline companies to convert huge capital expenditure into manageable operational expenses. This helped

I several new airlines to begin operations and existing airlines to expand their fleet, accelerating the aviation industry growth. Meanwhile, the number of parts in a commercial aircraft exploded from a few thousands to several million – Boeing 737, a 1960s model, had about 400,000 parts whereas 747-8, a 2016 model, has over 6 million parts. The need to gather intelligence on aircraft parts has become clearer with a growing leased fleet, entailing effective inspection and maintenance of aircrafts immediately after touchdowns. The latest Pratt & Whitney’s Geared Turbo Fan (GTF) engine launched in 2016, for instance, has 5000 sensors that generate up to 10GB of data per second. A twin-engine aircraft would therefore generate 844TB of predictive analytics data from a 12-hour flight (for a comparison, Facebook receives 600TB of data in a day), enabling passenger safety and service level agreements adherence with airline companies. Additionally, cloud computing eliminates the need to analyze this big data in-house.

Subscription Commerce in other industriesWhat happens in the aviation industry would sooner or later come to other industries. IoT and smart devices have already begun transforming several traditional manufacturing and trading businesses: Connected Cars are helping auto manufacturers to redefine relationships with service stations, dealers, corporate buyers, fleet owners, and service aggregators like Uber or Lyft. With increased R&D in self-driving cars, companies like BMW are exploring pay-per-use personal transport. Subscription Commerce allows automobile customers to relinquish vehicle ownership and grab low-cost services instead. It can make recall of vehicles, a huge regulatory cost to address faulty parts, irrelevant in the future.

Connected medical equipment and devices are enabling medical device manufacturers to enhance the healthcare experience. Although expensive diagnostic equipment like MRI/CT scanners are leased to hospitals today, more devices are expected to be offered as services by

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About the author

Bharath Sarma Rejeti,Principal Consultant, Wipro

He leads new business pursuits in Digital Commerce for Connected Customer Experience (CCX), a service line within Wipro Limited. He has

17 years of experience in presales, product marketing, and IT services marketing, partner enrollment and enablement.

either group purchasing organizations (GPOs) or device manufacturers. Similarly, healthcare and wellness devices, such as pacemakers, smart implants or Fitbit, are expected to be marketed by providers or payers. Patients would get all the required devices under a health plan, eliminating the need to buy them separately. Subscription Commerce can therefore accelerate the growth of affordable healthcare.

Smart Shelves and location-intelligence devices are pouring in insights on customer behavior and preferences, enabling retailers to reimagine how they sell products. Meanwhile, online retailers such as Dollar Shave Club and Birchbox are delivering personalized surprise pack of leading

brands in shaving, makeup, and skincare solutions through monthly subscriptions. Subscription Commerce would enable retailers to offer innovative ways to capture repeat orders, improve their customer experience, and increase revenue per customer.

In summary, Subscription Commerce is not just an emerging trend to exploit the full power of smart and connected devices, cognitive analytics and insights on customer preferences. It is expected to disrupt business and revenue models, offering flexible innovative subscription options to customers and increasingrecurring revenue.

Subscription Commerceis redefining personalized digital commerce experience. It is focused on delivering satisfactory outcomes and not just selling à la carte products.

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