Upload
zuora-inc
View
628
Download
0
Tags:
Embed Size (px)
Citation preview
Confidential and Proprietary Information. Do not distribute beyond intended audience.
Four Key Challenges in the Shift to Digital Recurring Revenue
W e b i n a r w i t h Z u o r a a n d S a u g a t u c k T e c h n o l o g y
Brian BellChief Marketing Officer
Mike WestResearch Fellow
Joe AndrewsSr. Director, Marketing
Moderator Featured Guests:
Agenda
1. Context – the enterprise business shift
2. Research – the four key challenges in making the shift
3. Relationship Business Management – a system of
innovation
4. Learning from companies who have made the shift
Slide 4 − Zuora Confidential, not for distribution beyond intended recipient
4
Disruption of Everything.CODE: VIP50
The Subscription Economy takes the changes wrought by the SaaS model and applies them to companies in every industry.
We call this the Subscription Economy
Monetize RelationshipsShip Products
The Shift To Models Built on Relationships
CONSUMER BUSINESS
4 out of 5 businesses believe their customers are switching to new consumption models. “ ”
PearsonZendesk HPDellConnect America KaplanSPH
Reed Elsevier
Intuit American ExpressNCRTripAdvisor GoodMouthTouring Car Suisse
ServCorpQualcomm InformaticaDocuSignCarfax MindBodyFinancial Times
Customer Preferences Have Changed
High Tech
Cloud Infrastructure
Internet Of Things Education
Healthcare
SaaS
Communications
Creating Business Model Innovation In Every Industry
51% of companies have changed or are in the process of changing the way they deliver goods and services“ ”
Media
Copyright 2014 ǀ Saugatuck Technology, Inc. ǀ All Rights Reserved www.saugatucktechnology.com
Mike West
Research Fellow
Saugatuck Technology
Retooling for the Digital Economyand Recurring Revenue
9
The Challenge:How can you make these changes happen cost-effectively and with the least disruption?
The digital imperative
Presents new technology challenges…
recurring revenue and monetization
new business partners
new systems
integration
10
recurring revenue and monetization
11
“Used to be 90 percent broadcast, but today it’s over 50 percent digital products. It’s everything from pure ad revenue to content reach on online platforms we monetize, but the bigger piece is in the shift to digital downloads and other ways of distributing video-on-demand in a combination of a la carte and subscription….”
Copyright 2013 ǀ Saugatuck Technology, Inc. ǀ All Rights Reserved www.saugatucktechnology.com
Page: 12
new business partners
“We’ve been happy with ability to deploy faster, increase the speed at which we are moving, by partnering and adopting an agile approach…
…especially with a complex solution involving multiple partners. We are dependent on our infrastructure provider, our billing provider, on our Cloud platform for scaling to meet demand and need.”
new systems
13
“Need to make sure you’re not just bringing the old stuff and adding a few things…”
“New systems are necessary, whether billing or revenue recognition or go-to-market, catalog, or social channels in customer care. New tools mostly but sometimes just the same tool implemented differently.”
integration
14
“We have a need to hook ERP environments into third party APIs, doing handshakes for exchanging sales keys -- If it’s not automated, you can’t scale -- for monitoring customer experience and for monetization performance”
summary
Meeting the four key challenges:one recurring revenue and monetization
two new business partners
three new systems
four integration
15
How can you make these changes happen cost-effectively and with the least disruption?
closing
16
“We are always surprised where innovation comes from. As we deploy new capabilities in the Cloud to make things easier for the business, it lets the business focus on innovation.”
summary
Meeting the four key challenges:one recurring revenue and monetization
two new business partners
three new systems
four integration
17
How can you make these changes happen cost-effectively and with the least disruption?
Innovation Requires Agility, But…As An Enterprise, You Have A Unique Challenge
A system that is not sufficiently flexible to meet changing business demands is an anchor, not a sail, holding the business back, not driving it forward.
“”
You have invested heavily in your ERP application
But your ERP system doesn’t help you innovate in an agile fashion
BUY NOW SUBSCRIBE
Recurring Revenue(Long-term, adoption, loyalty)
New approach to growth
Sell One-Time Units
Fixed, SKU Based
One-Time Transactions
Backwards Looking Metrics
Flexible, Plan Based (Editions, Bundles, Usage)
Recurring(upgrades, add-ons, renewals)
Forward Looking(ARR, MRR, Churn,
Renewals)
You require a completely different approach
New approach to pricing
New approach to commerce
New approach to finance
Innovationin Pricing& Packaging
Complexity in Commerce
& Order Management
Complexity in Billing
Complexityin Payments
Complexityin how youMeasure
Innovation in one area of your business causes complexity in other areas
Without a system that can manage this complexity, business model innovation is hard
1
2
3
4
5
Confidential and Proprietary Information. Do not distribute beyond intended audience.
You Need
Relationship Business Management
RBM Is Your
System of Innovation
ERP Is Your System Of
RecordBuilt For
Monetizing Products
Built For Monetizing Relationships
The Relationship Business Management Difference
Plan-Based Catalog
Multi-channel Commerce
Lifecycle Orders
E-Commerce CPQ Engines RBM System
Relationship CommerceBilling Engines
Recurring Billing & Payments
ERP
Recurring Billing Automation
Recurring Payment Automation
Recurring Revenue Mgmt
Accounting Close
Revenue Recognition
Subscription Metrics
It integrates with your existing enterprise ecosystem
Systems ForCustomer Engagement
Systems OfRecord
Relationship Business
Management
CRM
Website
ERP
Financial Applications
Systems Of Innovation
“NCR rivals Paypal as Square’s scariest competitor.”
The Business Model Shift:• NCR Silver represents NCR’s first foray into
selling POS solutions to individuals and small businesses
• NCR Silver is NCR’s first iPad base POS solution
The Challenge:• Needed the ability to launch flexible pricing
models and iterate rapidly to compete in a crowded market of over 300 providers like Square
• Needed to be launch in 2 months
The Solution:NCR chooses Zuora as the commerce, billing and finance management platform for NCR Silver.The project is delivered in 61 days, with web self service sign ups, integration to Salesforce, and summary journal entry updates to Oracle. NCR uses Zuora to rapidly launch new pricing models, automate high volume billing and collections, and manage subscription lifecycle events.“NCR missed the transition to digital,” said CEO Bill Nuti, “and it hasn’t been engaged with small business owners since 1971. But NCR wants a new relationship with small and medium businesses, and today it’s about to start. And it’s going to do it via Apple’s iPad. Today marks the launch of NCR’s first new division aimed at small businesses in 50 years.”
“Touring Club Suisse replaces AS400 with Salesforce ,Zuora.”
DiginomicaThe Business Model Shift:• A business that counts half the population of
Switzerland as its customers needed to stay relevant in an increasingly competitive market
• TCS needed a way to engage with a younger, digitally engaged demographic
The Challenge:• TCS had been running its operations on a
AS/400 computer for over 20 years• Making changes was an expensive and time
consuming process• TCS was unable to offer anything other than
annual memberships on its current platform
The Solution:TCS rebuilt it’s IT infrastructure with 6 cloud native apps. At the heart of this new infrastructure are Salesforce and Zuora. Salesforce is the core CRM environment used by sales agents in the call center, and Zuora is used for subscription management, billing for almost 3 million subscriptions. Zuora is also integrated with SAP for consolidated financial management.
“Easy pricing, easy billing is absolutely key. We have built an environment now where the system adds a lot of value …With Zuora we do get that kind of flexibility where we manage the whole payment cycle [separately] from managing the subscription.” Ernest Gmunder, CIO, TCS
“Acxiom’s Audience Operating System could reinvent data driven marketing.”The Business Model Shift:• AOS is Acxiom’s most important business
initiative in 30 years• The launch of AOS represents a pivot from a
low volume of large 7 figure, high touch perpetual license B2B sales to a high volume of B2Any subscription sales in new markets.
The Challenge:• Needed flexible subscription based pricing
and packaging for the success of AOS• Needed seamless integration to Salesforce
for front office and PeopleSoft for back office• Needed to be live in less than 6 months
The Solution:Acxiom chooses Zuora as the commerce, billing and subscription management platform for AOS.The project is delivered in 159 days, with integration to Salesforce, PeopleSoft. Acxiom uses Zuora to experiment with new pricing models, and sign on new AOS clients that represent new markets and the next phase of growth for the company.“We are at an inflection point and starting the next chapter in our journey,” said Acxiom CEO Scott Howe. “We are a new company. Over the past two years we have worked to build a better business and to drive innovation. While it’s early, we are pleased with our launch of the Acxiom Audience Operating System and the resulting customer reaction and support.”