3. We are Changing
83 percent of IT Gartner forecasts Cloud storage is
decision say cloud cloud computing expected to have
computing made market will be double digit
business more $241 billion by growth until at
productive 2014 least 2017
Overstock.com: In More YouTube Car-sharing
the business of video uploaded revenues in North
moving “electrons in 2 months than America will hit
and algorithms” all new network $3.3 billion by
content combined 2016
since 1948
Today we are talking about billing systems Why? Billing is the technology or systems that are core to your business and how you actually make money. It doesn’t matter how great your cloud service is if you can’t charge and realize revenue from its use.
Our culture has shifted the way we consume. We download instead of purchase in a store, We like user generated content and unscripted reality over Hollywood We prefer to buy single music tracks vs complete CDs. We like on-demand and sharing services instead of outright ownership. This shows an economy that is moving more and more to an activity-based consumption model. In this economy companies survive and thrive by evolving old business models to address these new customer preferences for consuming
Business has ad-hoc, one-off purchasing options Activities are not measured, subscription options do not exist No formal billing capabilities, function is largely manual No insight into customer behavior
Business rolls out simple subscription offers More stable and predictable revenue Billing becomes more complex, prone to errors Revenue recognition is difficult Billing is resource and time intensive
Usage caps and activity charges are applied to subscriptions to increase revenue More advanced systems replace homegrown or manual billing systems that can’t support activities Market segmentation and business intelligence is greatly enhanced by formalized billing systems Is able to customize individual price offers because of multidimensional billing features The organization proactively optimizes billing activities, processes, and outcomes based on changing needs Billing becomes integrated with other systems
