Pwc Consulting Launches Xaas Solution To Support Business Model Transformation From “selling Goods” To “selling Things”

That way, you’ll own the capability and can quickly build your new services business. Disruptive technologies and new business models are re-defining or even converging industries and causing re-evaluations of enterprise value. Market leadership depends not only on innovative thinking but on the ability to monetize new technology. While the possibilities of servitization and increasing your organization’s value proposition through the use of the XaaS model may be tempting, adopting this approach is no simple task. To succeed, the goal of servitization must be more than just milking more money from customers.

XaaS business model

Most consolidated organizations also have complex processes for approving investment projects, through the elaboration of detailed business cases that require clear definitions of objectives, purposes, and scope. This rigor does not encourage initiatives in which trial and error have to be part of the modeling process that will lead to the definition of the new product or service. Business ideas like Spotify, Netflix or AirBnB, -mainly born on experimentation- could not have passed the filters of the rigorous investment committees of corporations in the music, cinema or hospitality industries.

Tech-driven transportation can be divided into many subcategories, depending on, for instance, the type of payment, distance length, or open/closed distribution system, however, for the purpose of this post the adopted distinction will be customer’s involvement in transporting. Hence, the two main categories considered are platforms connecting drivers with passengers and vehicles available for self-contained transport. The most popular types of MaaS include bike sharing (most notably in China – Mobike, and in Europe – Nextbike), ride hailing , car sharing , ride sharing , as well as the recent global phenomenon of rapidly scaling electric scooters .

Kpmg Connected Enterprise

Long employed by utility and telecom companies, flexible consumption has now expanded to businesses in other industries, creating value for both customers and the companies that adopt them. Benefits to customers include flexibility, convenience, and affordability, while vendors can enjoy financial predictability, lower unit costs from aggregation, and enhanced customer relationships. All of the above have been influencing the shift to MaaS, and, along with the strengthening of the Millennial generation as the main economy driver, as well as the rise of an even more tech-centred Gen Z, the ‘aaS’ model will only continue to grow.

  • You can read more about it in our recent report on MaaS (it’s in Polish, but you can grab some resources in English here).
  • In this sector, there is a shifting focus from creating a product at a specific point in time to the continued use of that product over an extended period.
  • Millennials prefer to experience/use/take advantage of rather than own/possess stuff.
  • The Zuora product portfolio, which quickly monetizes the subscription business, covers all operations from upstream to downstream on one platform, can be linked with ERP and CRM, and has a track record of introduction by more than 1000 companies globally.
  • This rigor does not encourage initiatives in which trial and error have to be part of the modeling process that will lead to the definition of the new product or service.
  • Finally, it is worth mentioning the emergence of new transportation technologies, such as artificial intelligence, self-driving vehicles, smart appliances and other IoT advancements, will present new possibilities for Mobility-as-a-Service.

They must also incorporate a new governance model for these elements, which will now be added to the traditional IT processes. It allows its users’ resources been provided such as processing, storage, firewalls, load balancers, and networks. Each user company has the responsibility of configuring and deploying the applications that consider appropriate.

In fact, our latest Subscription Economy Index found that subscription businesses grew revenues about 6 times faster than S&P 500 company revenues (17.8% versus 3.1%) from January 1, 2012 to June 30, 2020. In the world of composite computing, it will not be easy to say -for an application or a business process- where one service model ends and the other begins, or which deployment models it uses; You may use a combination of several of them . It may not matter the limits that theory imposes on us when it comes to addressing business opportunities. Hybrid solutions should be welcomed because they also allow a smooth transition from legacy applications to the new model. KPMG Connected Enterprise is a digital transformation approach, it’s industry-specific, and customer-centric.

What Is Xaas? Everything As A Service Explained

This is a common trend in the manufacturing industry, where manufacturers move from simply building and selling a product. They start adding additional services and products and may sell direct to consumers. In this approach manufacturers get closer to customers, provide more value to them, and retain them by providing different levels of service differentiation. The evolution of business models from distinct products and services towards XaaS. A business model defines how a company creates, delivers, and captures value.

XaaS business model

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By outsourcing aspects of your business, you can focus your core team on upskilling and strategic development efforts without losing traction with existing customers. If you have the expertise in-house and the resources needed for some aspect of your new XaaS business model, make use of those resources, and then identify your gaps and determine the best strategy to fill them. If you have the capital, then perhaps you acquire a company that’s focused on a singular aspect of the business that covers your gaps.

So we adopted, almost without noticing it, solutions like Facebook, Google Maps, Waze, and others. A Consumer has the right to request that a business delete any personal information about the Consumer which the business has collected from the Consumer. If we determine that an exemption applies, we will inform you and tell you why we are not deleting the requested information. The categories of personal information that the business collected about the Consumer in the preceding 12 months. The business or commercial purpose for collecting or selling personal information. The web site may provide links to third-party web sites or apps, including our social media pages.

Examples Of Business Model Innovation And Xaas

Regardless of the category, the key element for all MaaS providers and users is the digital interface, based in cloud, ideally optimised for mobile and augmented reality use. It is that technology that enables location-based transport suggestions, optimised for route efficiency, price, convenience or a variety of other factors. In case of self-contained transport, the interface provides an insight into vehicle availability, serves as a tool to claim a vehicle, and automates the fee settlement. After all, there is no physical driver to handle the charges, hence the process requires full automation.

If you attempt to bring any legal proceedings against Argyle Executive Forum, LLC you specifically acknowledge that Argyle Executive Forum, LLC is free to choose the jurisdiction of our preference as to where such action against us may be held. Organizations across the globe are adopting an ‘as-a-Service’ method for everything from contract negotiation, to billing and invoicing, accounting, and compliance with revenue recognition standards. Learn more hereor contact a KPMG professional who is ready to help you address new challenges and drive growth. Allows the company to retain ownership of the product and thus make use of its valuable materials once it is decommissioned. Discover how to handle the new demands of the subscription-based economy. Other forms of XaaS include monetization based on volume of usage – or the outcome – as well as fixed price or variable price approaches.

The Case For Transformation To Everything

Understanding where to start on the path to business model innovation is challenging, especially when you have an established business with various customer bases, revenue streams, and stakeholders. In the past 50 years, the averagebusiness model life spanhas fallen from about 15 years to less than five. And to survive in such a fast-paced environment, organizations must be agile, quickly adapting to changes in technology, market trends, and customer expectations. Moving to the more general, XaaS-related challenges visible in the mobility sector, two headaches seem to be the most painful – building the right scale and controlling online fraud. However, quite recently, a Chinese bike sharing giant Ofo, brought itself near bankruptcy, by overestimating its scalability potential and running into cashflow hurdles.

In this point of view, you can explore the critical signals of change currently influencing the XaaS industry and how XaaS companies might address the three challenges outlined above. Who knows, maybe one day we will live in a world, where quite literally everything is offered as a service, each move, decision or activity will be tied to a seamless micro-transaction through an interconnected IoT interface. But speaking of seamless transactions – read our recent blog post listing simple checkout and payment experience as one of the core business growth hacks. Starting with mobility, one of the main hardships is the constant struggle against regulatory bodies, trying to impose policies constraining MaaS legality. That is, of course, most prominent in case of ride hailing apps, but electric scooters or motor scooters are not far behind in the legislative game. The natural solution to that problem is lobbying efforts in case of big players.

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Argyle has collected the following categories of personal information from Consumers in the last 12 months. The categories of third parties with whom the business shares personal information. The categories of personal information it has collected about that Consumer in the preceding 12 months. Rewrite your data strategy to help capitalize on the digital investments made over the last two years. Organizations that invest purposefully in these capabilities are twice as likely to meet customer expectations, achieve their objectives and deliver return on investment.

You’ll simplify processes with trusted, streamlined services while freeing up your staff to focus on the road ahead. Some of the features required for a digital world can only be provided by cloud computing, being scalability one of them. If, for example, our company’s services must be invoked by devices in IoT mode, that will be the only way to respond to fluctuations in demand — that will not be compared with those that we have today in our traditional Web page and mobile app.

Additionally, we process your personal data when necessary to do so for our direct marketing purposes and this interest is not overridden by our data protection rights. KPMG professionals can help technology leaders navigate today’s pressing business issues including the expanding reach of platforms, customer and revenue growth, digital labor and cognitive automation, autonomous vehicles, data and analytics and blockchain/digital ledger services. Since business models vary based on industry and business strategy, there’s no “one-size-fits-all.” Instead, you should consider the unique needs of your company and the specific growth strategies you intend to implement. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients.


This solution aims to start providing services as soon as possible by embodying strategies and visions for changing the business model from selling goods to selling things, and utilizing industry-leading subscription platforms. In addition to our experience in working on numerous large-scale transformation projects, we will utilize the best practices of XaaS solutions accumulated in the PwC global network to materialize our business concept, examine the optimal business model and organizational structure, and so on. We provide consistent support from strategy to execution, including the design and construction of the digital platform that supports it, and the rapid transition to production. Furthermore, low entry barriers for customers present an opportunity to target much larger groups of users. Once a consumer has already became a customer, businesses can utilise a plethora of measures to monetise their value proposition, including upselling and cross-selling. This leads to a significant revenue boost and high scalability potential.

Pwc Consulting Launches Xaas Solution To Support Business Model Transformation From selling Goods To selling Things

The best approach to smart scale building is partnering with flexible providers, offering solutions that facilitate global expansion safely – for instance, a GDPR compliant CRM, server host that can operate without geographic restrictions, or a multi-currency payment solution. Another massive problem of tech-enabled transport is vehicle damage, a problem also tied to a broader spectrum of challenges – high operational costs. Considering damages, the correct, but a bit sluggish strategy, is education.

In order to explain the matter as clearly as possible, I’m using a case study of one of the most mainstream breeds of XaaS – Mobility-as-a-Service, leveraging insights from Straal’s recent report . The adoption path of cloud computing -in any of its deployment and service models- should not be just a decision that belongs to IT but should be analyzed and agreed across the organization. The technological, financial, commercial, operation/production, SaaS & HaaS legal, regulatory and even cultural aspects of the organization must be carefully reviewed previously. It all begins, however -with the organization firm belief that the competencies that cloud computing will provide, are necessary and aligned with its most relevant business strategies. Aside from cloud and digital technology advances, there are several important reasons why subscription-based models are increasing in popularity.

Everything-as-a-service model transformation allows customers the flexibility to consume and pay-per-use, but transitioning is complicated and challenging. Companies exploring consumption-based business models should think through the implications of the complex and interrelated business decisions they’ll need to make as they transition. A key feature of the cloud model is the ability to create an experimentation/improvement cycle at a lower cost.

Upon this logic, it was thought that “they could do it all”, and that by doing so -and achieving economies of scale and scope- would have a better control of its productive processes, their costs, and synergies. This model is used in many cases by on-premise type of organizations to manage a soft transition to cloud computing models. To cater to this rise in demand, there have been many born in the cloud providers emerge as market leaders in their respective category segments and you can continue to see a large number of providers move from perpetual/term license models to subscription/as-a-Service models. The success of this operating model in the technology world, has also given rise to companies in a variety of other industries adopting this model. BMC works with 86% of the Forbes Global 50 and customers and partners around the world to create their future. With our history of innovation, industry-leading automation, operations, and service management solutions, combined with unmatched flexibility, we help organizations free up time and space to become an Autonomous Digital Enterprise that conquers the opportunities ahead.

That is why so many businesses and consumers decide to use, rather than own. With the massive success of subscription-based business models, more organizations are looking to get in on the action by leveraging “servitization”—the combination of products and services into a single package. Today we live in a digital world with an estimated 2.5 quintillion bytes of data generatedevery day, transforming how we live, work, and do business. For organizations, this influx of data – coupled with a global shift to cloud-based technology – is fueling business model innovation that’s resulting in greater resiliency, competitiveness, and growth for companies. As your business model strategy matures and you gain access to usage and other data intelligence, such asInternet of Things datafrom equipment and products, you can develop additional revenue models such as bill-based metering. This requires smart, connected products that support the flow and sharing of data.

Utilizing AI, machine learning, and data analysis expertise, effective service proposals to target customers that contribute to business expansion, optimal pricing, cross-selling and up-selling revenue expansion, maximizing repeat rate, We support the minimization of churn. We chose to be the pioneers in this transition, so that we can leverage our investments as we grow, rather than bet on a model we expect to decline in the industry”. If the processing of personal data is necessary and there is no statutory basis for such processing, we will ask you for consent to process your personal data. You have the right to withdraw your consent to processing of personal data at any time. We engage in general profiling based on the personal data that we have about you, and use automated decision-making and/or profiling to tailor the offers that you receive from us.

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