A recent article by CIO.com explains that the fear of being disrupted by digitally native start-ups is pressurizing CXOs into looking at building smarter enterprises characterized by productivity, innovation and new business models. Legacy enterprises are thus turning to digital transformation, driven by clear business-focused drivers. Gartner Inc.’s annual global survey of CIOs, reveals that cloud computing is amongst the top priority areas where most CIOs will increase their investments in 2020, with the global market expected to reach $445.7 billion in 2022.
Thus, cloud adoption has gone mainstream and every organization can be measured on the stage at which they are in on their cloud journey. The survey segments these companies into four main categories. Namely, torchbearers with high adoption of cloud across functions, pathfinders with moderate cloud adoption, defenders who take a siloed approach and aspirants with low adoption.
In this digitally advanced, competitive environment it is imperative not only to modernize business models, but to scale-up efforts to drive digital transformation initiatives forward. Here are a few suggestions on how to reach the next level, from wherever in the transformation journey you are.
Transforming “With Cloud”, not just “Moving to Cloud”
Cloud empowers companies to adopt technologies like big data analytics, artificial intelligence, machine learning, internet of things, blockchain, edge computing and much more. To benefit from these emerging technologies and to remain competitive amidst evolving customer needs, enterprises must invest in the future with a view to generating value and scaling business. Enterprises need to embrace transformation across applications, infrastructure, monetization platforms, ERP, data centers and adoption of full-stack solutions. Adopting and expanding on strategies including containers, microservices and APIs, elevating the customer experience through customization, enabling technology-driven business innovation and AI/ML driven self-service operations is an investment in the future. Focus should be maintained on accelerated workload migration to the cloud, while also simultaneously modernizing applications to make them real time and digital-ready. It involves an interdisciplinary collaboration, data-based decision making and embracing agile, experimental and immersive ways of working, while also taking care of all the security standards and best practices.
Focus on Transformation Initiatives and Value Discovery
Organizations require competent enterprise-grade partners with a demonstrated track record of driving digital transformation, armed with investments into enterprise architecture, a suite of industry solutions, proven methodology and success rate. As the future landscape becomes increasingly complex, organizations that select the right partner to meet their business goals and digital transformation objectives will have a strong competitive advantage. Similarly seeking the right partner for automating the entire order-to-cash process, including billing, revenue management and partner payments will give organizations a strategic advantage.
Modern Best-of-Breed Still Wins
According to a recent Forbes article, enterprises have diverse needs and will most likely subscribe to more than one cloud service to meet those needs. This is a modern version of the classic “best-of-breed” approach to IT, in which the top solutions from different vendors are brought in to support the business needs. As organizations modernize apps, they are evolving into composite applications that use a mix of microservices and environments, which results in more complex applications from more vendors. A composite multi-cloud architecture ensures that various online resources can be managed as a unified environment.
Improve Customer Lifetime Value through Digital Transformation
These strategies can help enterprises acquire more customers, improve customer lifetime value, and be more competitive, all leading to superior brand affinity. This digital transformation empowers organizations with a scalable and predictable revenue engine that enables improved financial management and increased and sustained profits.
Typically, companies that transition to a recurring revenue model use their existing customer relationship management and ERP systems. Since most ERP systems are designed for transactional businesses, it can be difficult for them to handle sales spanning multiple periods.
To address these issues RecVue’s founders built the only enterprise monetization platform based on big data and powered by Oracle’s cloud infrastructure that helps enterprises adopt and manage innovative business models to drive recurring revenue growth. With RecVue’s revenue management capabilities, finance organizations have an easier, more secure process for translating complex contractual relationships into accepted accounting statements to meet rigorous compliance rules. While other revenue recognition solutions require that you re-build the order, with RecVue the contract is the central element for all downstream processes. RecVue’s unique, unified platform integrates with ERP and front-end order processing systems. Customers are mastering hybrid subscription and high-volume usage-based models with sophisticated pricing and rating scenarios, while gaining operational efficiencies, expanding their business footprint, and exceeding customer expectations.
Reach out to us today for an order-to-cash assessment and to learn how smart monetization can fuel your recurring revenue and traditional business models and take your enterprise to the next level of digital transformation.