Uddhav Gupta, President of CloudBlue.
At a time when customers want convenience and access to services on demand, many businesses are having to rethink their go-to-market strategies, especially in the tech sector. Traditional models of ownership are giving way to the subscription economy.
When it comes to digital transformation, maturity levels vary, and every organization has a different understanding of what that transformation should look like for their organization. It is an ongoing process, and you need to be committed to see it through if you embark on it. It does not happen overnight.
Establishing ways to generate revenue from cloud services will aid in the digital transformation experience, participation in the subscription economy and the future trajectory of the company. With my experience spearheading the development of world-class service offerings and the necessary commerce infrastructure to support a subscription business while introducing new digital routes to market, I’ve found that more enterprises are looking at monetization as the first step in their digital transformation journey.
Unlocking Opportunities For Growth
Subscriptions to cloud services made up about 45% of the global digital subscription economy in 2020, which reached a market size of $650 billion that year. According to a technology report by Bain & Company, software companies that increase their share of revenue from subscriptions have stronger growth in share price.
Partnerships are crucial to taking full advantage of the subscription economy because each business contributes resources, such as products, data, services or expertise. You can access new market segments, leading to increased brand visibility and customer engagement. A fitness equipment manufacturer, for instance, can offer software as a service (SaaS) on a subscription basis so customers can sync their workout data and join a community of users. A tech manufacturer can sell a laptop along with a subscription to cybersecurity or data storage.
As you add more partners, products and services, daily operations become more complex. Utilizing a cloud infrastructure that enables end-to-end automation and integration of processes is essential. You need a sophisticated cataloging system, a high-performing billing engine, a mature integration platform and the ability to overlay commerce or experience workflows on top of traditional systems.
Optimizing AI
The agility and scalability you get with cloud migration can be enhanced by advanced technologies such as artificial intelligence (AI) and machine learning (ML) tools. For instance, AI can analyze user behavior and preferences to suggest highly personalized product recommendations. How do customers interact with your website? You can use data to curate content that will resonate best with your customers. This not only enhances the user experience but also increases the chances of cross-selling and up-selling.
In terms of defining digital experiences, real-time AI/ML insights are a game changer, enabling you to automatically offer solutions tailored to each customer. Just like social media feeds generate suggestions based on user preferences, this type of insight is impacting digital marketplaces.
Detecting anomalies is also a critical application of data analysis, providing valuable information and facilitating prompt reactive measures when things go wrong. By integrating advanced technologies, you can create engaging experiences for users while also improving operational efficiency and business management processes.
Maintaining Digital Fitness
Digital transformation should be treated as a paradigm-changing project, akin to wanting to become physically fit. No one should start by trying to lift 300 pounds on the first day. If you want substantial results, you need a long-term exercise regimen to keep you on track.
Members of your team might have varying levels of understanding and familiarity with digital technologies, even about the cloud basics. Recognizing this learning curve is important when planning and implementing digital transformation initiatives.
An organization takes on the characteristics of its leaders, impacting the direction and success of digital transformation. As a leader, you need to champion change, set an example and inspire a culture of innovation and agility.
Staying digitally fit is a process. Just like with an exercise routine, you need to work up to the point where you start seeing results and then push past that level to stay in shape. You make some tough decisions along the way, but you commit to it.
Creating An Omnichannel Experience
In the subscription economy, customers want a user-friendly way to consume technology. I’ve found that business customers, like regular consumers, want their shopping experience to be convenient and accessible with just a few clicks. All channels should be interconnected, telling a complete story of the customer journey like chapters in a book. You want it to be a good read from beginning to end, so it is important to map the process and identify how your customers are consuming your products and services.
An organization’s digital transformation is a top-down initiative that requires all stakeholders and departments to engage. Ensure employees are trained to provide consistent customer service and messaging across channels from customer call centers to social media platforms to AI-powered applications.
Eliminating “swivel chair operations”—manual data transfer between systems and applications–is crucial to providing a frictionless customer experience. It is important to automate and integrate processes early. The digital marketplace is the commerce engine in the front, but you need technology at the back end to run it all efficiently. The more add-ons you offer from other vendors, the more complex managing subscriptions can become. Utilizing automation tools for processes such as customer engagement, ordering, provisioning and billing is essential to efficiently manage recurring streams of revenue.
Collaborating with an experienced cloud monetization platform can provide the infrastructure that enables you to build digital ecosystems and serve your customers more efficiently. These platforms add a layer of connectivity and integration capabilities, making it easier to connect with other systems, services and third-party partners.
Conclusion
Generating revenue from cloud-based services is a crucial first step in driving digital transformation. You can leverage these services to enhance your operations and the customer experience, as well as create new revenue streams. No matter where you are in your journey, it requires an ongoing commitment from your leadership team and key stakeholders as you position your organization to adapt to trends and evolve with technology.
Your company’s digital growth is a process that must be organized step by step, with monetization as the initial building block, paving the way for continued development and expansion.
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