RESEARCH REPORT

In brief

In brief

  • By putting the right pieces in place, companies can deliver the engaging as-a-service experiences that customers expect.
  • Companies of all kinds are feeling increased pressure to develop as-a-service capabilities that can meet rising customer expectations.
  • Seven lessons learned from the companies who are making the pivot can help enterprises avoid costly mistakes that impact growth and profitability.


Putting the right pieces in place

While an as-a-service business model has significant benefits, capturing its full value is not easy. It requires a multi-year commitment, with many challenges along the way including evolving financial models, supply chains, new sales and support models. Progress toward the new model must be carefully managed in order to avoid undesired impacts on near-term operations.

Learning from the companies who’ve made the pivot

In pursuing this balancing act, companies often make avoidable, costly mistakes that can impact growth and reduce profitability.

6%

of companies have managed to create positive financial impacts from their digital investments.

30%

of executives agree that failure to leverage “digital value components” will cause them to struggle for survival.

How can businesses make the transformational shift to as-a-service? David Sovie, High Tech Industry Leader at Accenture, shares key pieces of advice.

View Transcript

Based on the experiences of companies who have built successful as-a-service businesses, here are some of the most important considerations to help accelerate, industrialize and scale these to these new models, while avoiding unnecessary pitfalls along the way.

1. Embrace the need for change

As-a-service will have a large impact, with significant cultural and organizational differences from more traditional operating models.

2. Deliver a superior customer experience

Successful as-a-service companies are skilled at building out a superior experience that makes offerings easy to implement, adopt, renew and expand.

3. Build in telemetry for a data-driven experience

Telemetry capabilities built into products and platforms can capture data that informs product development and fine-tunes the customer experience.

4. Rethink go-to-market and route-to-market

With a lower upfront payment and ongoing fee collection, the sales model for as-a-service is substantially different from a traditional sales model.

5. Make purpose-built subscription infrastructure

The new subscription infrastructure enables new types of sales activities, monetization strategies and a more frictionless experience for customers.

6. Recognize that it’s all about agile platforms

As-a-service products require an agile, fast-paced set of software engineering practices and talent that can leverage the latest technologies.

7. Think holistically

Recognize that in a subscription-based business model, everything is interconnected, and problems need to be addressed holistically.

View All

Whether your organization chooses to begin with a pilot or build out an entire as-a-service business model, the benefits can be significant. By creating a solid plan, and selecting an experienced and trusted partner like Accenture, you can avoid common pitfalls and build a valuable as-a-service business.

About the Authors

Kevin Dobbs

Managing Director – Accenture Consulting


Vikrant Viniak

Managing Director –​ Accenture Strategy


John Goble

Senior Manager – High Tech, North America

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