Sr. Director, Product Marketing
We’ve written a lot about the Subscription Economy and what’s required to build and run a successful subscription business. As the market shifts to delivering recurring services and innovative delivery models, massive growth opportunities exist for companies ready to transform their businesses.
But this shift is especially challenging for large, established global enterprises.
To this end, Zuora sponsored this research paper by Saugatuck Technology. The research is based on interviews with senior finance and IT executives with the goal of uncovering the primary challenges and the keys to success for enterprises in the digital business transformation.
This paper details 4 challenges among enterprises in the shift to digital:
Monetization of digital offerings
Partnering for digital business
Implementing new systems
Integrating with back-end ERP systems
Designing a new business model built around recurring relationships is easier for start-ups, as they aren’t constrained by a legacy of product-centric business processes, mindset and legacy IT systems. For large, global enterprises that have a traditional product based business model however, the transition can be a significant challenge.
Monolithic ERP systems make it difficult for enterprises to swiftly and easily embrace alternative business models like subscriptions. As a result, companies need platforms that bolster their backend legacy ERP systems to enable continuous business model innovation centered on the recurring customer relationship.