October 2 by Eric Dreshfield
Think about your business – are you hitting the goals you set? Are you securing leads and opportunities? Is your closed-won ratio high enough? Think about your sales cycle – does it typically take days, weeks, or months? Or is it even longer? Think about how your company is performing against the competition – are you accelerating ahead? Pushing limits? Expanding market share?
Forrester stated in it’s Top Capabilities To Accelerate Digital Transformation publication (April, 2018) that “What worked in the past is no guarantee of future success. Indeed, past capabilities that helped differentiate your business may hinder future success.” This is cruising.
In it’s Next-Gen Tools Will Drive Your Digital Transformation In Sales publication (November, 2017) Forrester said, “Every successful company in history has excelled at selling its product or service, but over time, differentiation has moved from the offering to the experience.” This is winning.
Where do you want your business to be?
The Evolution of the Economy
A quick look through history will reveal that the economy has primarily been driven by agriculture for thousands of years, then in the 1900s, it became industry that took charge. Since 2000, Anything-as-a-Service (XaaS) has taken over. Think about the rise of companies like Uber and GrubHub. Need a ride? A couple taps on your phone and a car is on the way. Hungry? Just a few clicks and your favorite food will be delivered to your door shortly. And don’t worry if you never carry cash with you – these services are supported by cashless transactions automatically charging to your credit or debit card. Instant gratification.
For companies that rely on B2B transactions, future success needs to approach the buying process in exactly the same manner. Focus on the buying experience: make it easy; make it quick; make it modern. The new business models that successful companies have adopted include:
New Business Models
- Subscription Economy
- Sharing Economy
- On-Demand Economy
- Everything-as-a-Service (XaaS)
By harnessing the strengths of these models, your organization will be able to drive revenue to an entirely new level.
“Subscription e-commerce market has grown by more than 100% a year over last five years.”
“56% of CEOs say digital investments improved net profit.”
Harvard Business Review
“Over the next decade, AI won’t replace managers, but managers who use AI will replace those who don’t.”
Are You Cruising, or Are You Winning?
Most people in business today will agree that improving the buying experience and taking advantage of today’s service economy is important. Actions speak louder than words. Are you doing it or just talking about it? Your stakeholders ask you all the time: How’s the business performing?
Your Manager wants to know. Your Executive team wants to know. Your CEO and your Board wants to know, and most certainly your investors want to know. So – are you cruising or are you winning?
How will you know if you are really winning? What metrics are you measuring? Ultimately, the number one key performance indicator that determines if you are winning, cruising or running out of gas is revenue. Unless you are a non-profit organization, your business revolves around how well you generate revenue. Sure, profitability, margins and market share are important, but the single most important metric is revenue.
Generating Revenue in the Service Economy
Any business that wants to succeed in today’s service economy must ultimately act on three key objectives:
1 – Make Money: Generate revenue, not just from new customer, but from renewals on current customers. That’s a guiding premise of the subscription model, that customers renew their business with you after each subscription period. This can be accomplished through automation of business processes that make renewing the subscription the easiest option.
2 – Save Money: For a business to succeed, they must be able to grow and scale with efficiency while controlling costs. This requires a behavior change. To accomplish this, you must positively impact the behavior of your personnel to execute processes more effectively.
3 – Remain Agile: Fueled by intelligence, data turns into information which enriches decision making and speeds operational execution. It’s not just about making things happen, it is about making the right things happen at the right time.
Maximizing Business Outcomes
While each of the three are impactful in their own right, combining the power of all three together produces a multiplier effect that can really spur your business into a faster, smarter, better state. Strategically combining process, behavior and intelligence improvements helps you maximize business outcomes. This is Apttus’ perspective. Just as ERP and CRM systems are based on platform approaches, so too is the Middle Office. Apttus addresses the Middle Office’s business processes with the industry’s first and only platform called Omni, with a complete and intelligent suite of integrated commercial applications – Digital Commerce, CPQ, CLM, and Billing. By combining everything on a single platform with a singular data model within the cloud, you enable faster sales, lower risk, ensured compliance, and automated renewals.