MGI Research made quite the bold statement in 2016; saying that Quote-To-Cash was no more. It will take a more comprehensive monetisation platform and focusing on processes to support this platform to improve productivity, customer churn, compliance, and revenue leakage.
Being able to quickly repackage, re-price, and then deliver an existing service, as well as rapidly developing and monetizing new services will take the separate divisions of marketing, sales, finance, and support, and package them together in a cycle of product development, delivery, sales, billing, and customer care. Doing this will take a monetisation platform that can be used to support each of these functions and push new products to market at a rapider pace.
Traditional billing systems that would collect usage, process subscriptions and rates, send invoices, and apply payments will now be replaced by fully integrated monetization platforms. These platforms will work well with a cloud ecosystem and offer important features such as revenue recognition and CPQ. The perfect monetization system features advanced tools, enabling it to morph and adapt to support brand new business functions as the monetization process evolves.
Companies that survived to 2017 on cobbled-together solutions that proved to be “good enough” are going to finally take steps towards implementing and a transformational cloud-based solution to give themselves a competitive edge. Companies that survived to 2017 on cobbled-together solutions that proved to be “good enough” are going to finally take steps towards implementing and a transformational cloud-based solution to give themselves a competitive edge.
- The Cloud Will Become a Requirement for Monetization Rather than an Option It wasn’t all that long ago that companies wanted to take non-essential functions such as CRM to the cloud. This time is over. Cloud-based solutions have been shown by the global market to be better, more cost-effective, and also more secure for companies hoping to upgrade a legacy system. Legacy ERP, billing, and several other systems are already being migrated onto the cloud. 2017 will see the cloud become the standard. We are now in the days when many businesses and consumer applications will be delivered through the cloud to create a mass migration motivated by quality rather than cost-effectiveness. Almost every innovation in software applications is focused on a cloud delivery these days.
- Billing Becomes a Front-Office Function 2017 will see an increased demand for monetization platforms that bring billing together with marketing, sales, operation, and financial reporting. Features such as producting modelling, advanced packaging and rating, and CPQ and revenue recognition will be bundled with core billing, and billing itself will be taken out of the back office to provide a swifter, better connected and fluid marketing-to-cash process. Companies that have to quickly model and implement a new product and pricing model won’t be able to leave it until the monetization process to discover if their initiatives can be monetized or not with a disconnected billing application. Developing and modelling products will begin on the monetization platform where new products and services are developed; put into rules-based CPQ; are monetized through a range of flexible invoicing and payment features; and are then accounted for according to a range of adjustable revenue recognition rules. The modern monetization platform will be brought to the front office because they are able to support the whole lifecycle of a product from the inception to delivery to accounting; meaning that companies will be able to quickly navigate the aggressively competitive global market.
- Everything Will be Connected 2017 will see a continuation of the demands for everything to be faster that have been a part of the global economy over the past decade. Connecting platforms and data together creates a continuous, seamless cycle of product development, delivery, and reinvention that forms the heart of the current competitive landscape. These new and efficient global operations will be unable to exist without an orchestrated, connected system. The idea of a slow and winding CPQ, invoicing, closing, and delivery process will be removed through automation and information access offered by holistic, interconnected environments accessed online. The demand for billing systems is set to fade in 2017, to be replaced by demands for end-to-end monetization platforms created by the evolution of consumer and competitive landscapes.
- The “Subscription Economy” Will Move Past Flat-Rate Subscriptions Newcomers to billing have long touted the creation of the Subscription Economy. There are upsides, such as creating awareness, improving the tangibility of the market, and helping bring meaningful use cases to bear. However it is unrealistic to believe that a company can just flip a switch and become subscription based, or that a company (or customer) would be willing to turn everything into subscriptions. A true monetization platform allows for flexibility in managing a range of consumption models without the need for multiple solutions behind the scenes. It’s also important to evolve such models quickly through the simple use of clicks vs code to gain a competitive edge.
The above predictions are a reflection of the impact technology and networking innovations are having, as well as their impact on consumers and the global economy as a whole. 2017 will see a continuation of the need of business information systems to respond readily to accommodate for the rapid shifts happening in consumer behavior and technology.
There’s no longer room for traditional billing systems in the evolving new world as the demands for agility in businesses and their associated systems call for a better business machine that is able to connect people, processes, functions, and customers fluidly and effectively to create a never-ending cycle of prospect-to-closure. The goal of the modern monetization platforms of 2017 is to drive technology and consumer behavior to redefine the market, instead of just responding to them in order to stay relevant.